BRC advises on store cards

The British Retail Consortium (BRC) advised British consumers yesterday that they must decide for themselves as to whether store cards were worth getting.

The credit cards, increasingly popular with UK shoppers, are offered by many large retail chains, such as IKEA, River Island, Mothercare and Debenhams.

Typically, they offer an interest-free period of around 55 days, and discount around 10 per cent from the first purchase.

Set against this is the mounting evidence that store cards consistently charge more interest than is usual. Recent research from consumer website Moneyfacts found that store cards charged 24.3 per cent interest, compared to the overall average APR of 16.7 per cent.

Press officer at the BRC said that the cards “offer a range of benefits to customers, including special promotions for cardholders, discounts and the opportunity to accumulate transaction-based loyalty points”.

He added that “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 are, and should be, able to make the appropriate choice for themselves”.

Tags: Consortium, rate of interest, Recent research, large retail chains, Payment systems, cent interest, opportunity, outset