Avoid store cards, struggling consumers advised

Consumer watchdog group Which? has warned people with credit card problems not to take out a store card as well.

The body says that store cards are often more expensive than the average credit card and as such are not suitable for somebody who is already experiencing difficulty meeting their monthly repayments.

Senior researcher Martyn Saville called on store card providers to “always lend responsibly” and said that companies should not offer customers more than they can afford to pay back.

He offered the following advice to consumers: “You should only take out a store card to get a discount if you can repay all the money when you get your first statement, as this means you avoid paying any interest.

“If you don’t plan to do this, avoid taking out store cards altogether.”

Yesterday, the British Retail Consortium said that it is “up to the customer” whether they want to take out a card.

The body believes that store cards offer “a range of benefits” if used responsibly.

© Adfero Ltd

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