Credit seekers should only window-shop
Article Category: Debt Management Help and Advice
Borrowers looking to take out credit should only window-shop as far as store cards are concerned.
That is the advice from debt consultancy firm Thomas Charles.
It advises anyone who is considering taking one out to "think very carefully" about it.
According to recent research by price comparison website uSwitch, shoppers with store cards are paying an average of 62 per cent more interest than those using credit cards.
It also revealed that the average store card charges a whopping APR of 26 per cent - ten per cent higher than the average credit card.
James Falla, from Thomas Charles, said: "My advice 100 per cent is don’t take out a store card full stop.
"The classic sales technique is: ‘Do you want ten per cent off your purchase today?’… but in order to get that ten per cent off, you need to take out a store card."
According to uSwitch.com, the number of store card accounts has almost doubled from seven million to 13.4 million in the last five years.
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