Should I chose a credit card over a store card

Posted by admin in Finance on 05 4th, 2011 | no responses

Credit cards are an easy way to get quick cash if you are ever in financial trouble. As the APR on cash withdrawals is high on credit cards it would never be advised to draw out large sums of cash. Credit cards work very well if you use them in the correct way and pay a substanial amount off the balance each month. Team a low interest rate with a substantial sum off the balance each month you will avoid running up large credit card debts. There are plenty of others ways to mount up debt in a similar way to credit cards. Store cards are similar to credit cards but are specific to one outlet, such as a high street shop. Store cards on the other hand have very high interest rates, these can be double what the interest rate can be on some credit cards. Some high street stores do other 0% offers but these are normally electrical stores not shops selling clothes. High street chains entice you into taking out a store card with their offers and sometimes free gifts.

In a lot of cases they make the store card seem appealing with the discounts they are offering and let you know that you can close the account as soon as you have taken advantage of the discount. In most shoppers eyes this is a good idea but then you keep adding purchases to the card and before you know it you have a very high balance. When it comes to paying the bill of your store card the interest you see will be very high. Store cards maybe seem like and easy option but in the long term the items you buy are going to cost a lot more once you have paid off the interest. To save paying a lot of money in interest it would always be advised to take a credit card over a store card especially if you can get it at 0% interest rate. This will allow you to pay your goods off when it suits you and not have loads of extra money added on that you have to pay.