Why do store cards still exist?

I will never understand why store cards are not a thing of the past. They have been in decline for years but they are still with us, hanging about like a bad smell. A store card in general has a very high interest rate in comparison to a mainstream credit card and ties you to only being able to use it in a department store or in a chain of stores.

Most people acquire these hideous products in-store. The retailer will offer a discount based on the application for the card. So on the day the card will save the applicant 10% or more on their purchase. This can be a significant saving if you are making a major purchase, furniture, etc. However they then hang about in a wallet, purse or handbag waiting for you to use it again. The only way a store card can be of benefit is if you use it to secure an additional discount on a major purchase and you can pay the balance off in full.

Not even the King of Consumer Finance, Martin Lewis has been able to kill off these dreadful things. So let’s look at the facts and hopefully we can help bring about the end of store cards:

• Store cards are expensive and inflexible.
• Credit Cards are cheaper and more flexible.
  

Ideally you should not carry a balance on any card (store or credit) if you can avoid it. They are both forms of “expensive money” and were never designed for medium to long term debt.

If you know someone with a store card tell them to pay off the balance, if there is one, and to cut it up. Should they want or need access to this type of borrowing they can log on to www.thebestbestbuys.com and look for the best credit card deal. They may not offer you a discount but you can get a credit card that will not charge you interest on your purchases for up to 12 months.