Time was when you walked into a high street fashion store and made your way to pay for your goods you would be met by the usual “Would you like to take out a store card today? You can get 10% off your purchases now”.
That is soon to be consigned to history as the rules governing store cards are set to change in a voluntary deal made between the government and the British Retail Consortium. From sometime in 2012/2013 retailers will no longer be allowed to offer enticing introductory offers to customers, BRC has said.
Until then should you be tempted by the lure of slightly cheaper items?
Play the game
This is the first rule of buying on a store card. If you are going to take advantage of the introductory rate make sure you pay off the total when you get your first bill and close the account.
Interest rates on store cards are traditionally very high and this is not something that is going to change under the new rules.
Do you really need it?
Like any credit card you will be credit scored to take it out and for what might only be a few pounds discount remember to ask yourself “do I really need this card?” Is it worth the time filling in the form and then cancelling it once you have paid it off. Most people forget and end up with a mounting amount of interest all for a tiny saving.
How easy is it to cancel?
If you do decide to take out a store card and have weighed up the risks versus the benefits make sure you do some research on the card first. Check out store card reviews to get a better idea of how you will be treated once you take it out.
What other deals are there?
If you fancy the idea of a credit card that has added benefits there are plenty of other products out there. Some are combination cards that reward you for your loyalty whilst still acting as a traditional credit card i.e. you can use it in any shop you like. Some will allow you to earn points that you can exchange for discounts, goods or experience days.
Whichever way you look at it always remember the key points before you sign up to any kind of credit.
- Can I afford it?
- Do I really want another card?
- Am I really getting a good deal?
- Can I trust myself to use it responsibly?
If the answer to any of the above is no then perhaps a store card is not for you. Shop around and check reviews before you decide.
About the author: Review Centre is one of the largest consumer review sites in the UK. The website offers consumer reviews on more than 100,000 products and services including insurance reviews and credit card reviews.
