Store cards offer benefits, retail body claims

British consumers are the ones best placed to decide whether a store card is useful to them, according to an industry body.

Despite the fact that store cards usually charge far higher rates of interest than credit cards, the British Retail Consortium (BRC) believes that customers get a “range of benefits” when using them.

Many stores offer an immediate discount for taking out a card with them, plus interest-free periods of between one and two months.

However, interest rates are typically around 24 per cent, compared to the average standard credit card APR of 16.72 per cent.

BRC Press officer Dale Atkinson commented: “As long as the rate of interest on store card debt is made clear to customers at the outset and there is full transparency of all terms and conditions, consumers should be able to make the appropriate choice for themselves.”

Meanwhile, a quarterly survey by debt consultancy Thomas Charles has revealed that more than eight million UK adults are in “serious” debt – defined as having £10,000 in unsecured debt.

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *