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Credit cards favored over store cards

Published: 11/05/2010 by Comments

Recently, financial experts have expressed their concern regarding the regular use of store credit cards. Consumers are often lured into acquiring store cards by promoters who entice with nice smiles and prefabricated phrases to make them sign in on the dotted line. At the same time, the vast majority of people using store cards say that they felt certain pressure from the little time that was given them to study the agreement which more often than not comes with a lot of fine print. This leaves the majority of customers who do register for store cards not understanding the full terms and conditions each store card comes with.

Consumers that prefer credit cards to store cards are doing much better off financially with a clear understanding of their obligations, terms of use and rate of interests which is lower than what any store card can possibly offer you.

Even though store cards do look like a favorable option to get discounts from a particular store at the time, having several cards from a number of supermarkets can hurt your position with creditors. Every time you apply for a new store card, the store makes a check into your credit history, if the requests are frequent then this may result in your credit score being lowered . Another factor that could damage your credibility is always using the store cards up to the limit, thus mounting a backlog of debt if not paid off regularly. If you still decide to go with store cards, try not to exceed 60-70% of the overall potential credit. However, credit cards are a much better choice, UK expert’s claim.

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