Shoppers are being advised to look for the best rate when entering into a store card agreement.
According to National Debtline, some store cards are “quite good” and can be used effectively if time is taken to fully understand the offers and rates involved.
Store cards, which typically offer an amount of credit accompanied by an opening discount on purchases, can be good “if you are savvy with them and you look at the way you use them”, said Becky Wilks, National Debtline spokesperson.
Ms Wilks added that while some store cards offer benefits such as money back or reward points, consumers need to make sure they are fully informed before applying for one.
However, she also stated that rather than applying for a number of store cards – a move which could potentially have an impact on one’s credit – it is best do “homework and research” in order to apply for the most suitable.
In addition, younger shoppers could be more susceptible to store cards as the offers involved sound “like a saving and a sensible thing to do”.
“Younger people of 18 and 19 might not be so inclined to read the small print and think about how much it is really costing them,” Ms Wilks said.
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