Store cards ‘most expensive form of credit’

February 26, 2008 by admin  
Filed under News, News-Credit-Cards

Store cards are probably “the most expensive form of credit that anyone can consider, claim debt experts.

Thomas Charles said that if consumers do decide to take a store card out, they should think very carefully about how they intend to pay the balance off.

James Falla, managing director of Thomas Charles, said: “My advice 100 per cent is don’t take out a store card full stop.”

He stated that this is because the average store card is 29 per cent APR, a rate which is “very, very high”.

Mr Falla also added that the credit crunch has resulted in credit criteria being tightened with some consumers claiming their limits are being reduced.

According to recent research by comparison site uSwitch, shoppers with store cards are paying an average of 62 per cent more interest than those using credit cards.

The average store card APR is 26 per cent – a figure ten per cent higher than the average credit card at 16 per cent APR.

Tags: anyone, United States, Payment systems, figure, average store card, cent

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