Introductory offers on store cards can look great, but consumers could be paying off purchases for a long time, warns Nationwide.
Many people are attracted to store cards because of offers such as ten per cent off when you open an account. Nationwide says that these deals can be a good way of saving money if the consumer can afford to pay off the balance in full each month.
The bank claims that some store cards can charge up to 29 per cent annual percentage rate, whereas
Divisional director at Nationwide Jeremy Wood says: “Although store card introductory offers look great at face value, borrowers who are unable to clear their balances each month could find that they are paying over the odds.”
Credit Action claims that UK consumers spent a total of £511 billion on debit, charge, credit and store cards during 2006.
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