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Store Cards or Credit Cards

This can be a dilemma that meets many individuals trying to choose between a store card and credit card and as a result of this, opt to have both but what are the exact differences and what are the differences in benefits between the two?

More and more people are holding store cards rather than credit cards but in both cases, it can prove to be an expensive option depending on what the overall requirements of an individual are.

When it comes to comparing credit cards, it can be equally as important to compare the differences between a store card and the large amount of credit cards which are available on the market today.

What is a Store Card?

A store card works in a similar way to that of a credit card and can be used in most major high street stores with more competitive rates then that of a credit card but this is where the differences can end.

If you spend money in store than you may find that you are offered a more excellent rate of around 19.9% which can be the same as a credit card but you could also collect reward points (where on a credit card you may not be able) however, a store card’s rate goes up for typical daily spending to around 29.9% which makes a credit card more desirable and affordable.

It has been reported that the rates involved end up being a lot higher than those of VISA or MasterCard and after interest payments, it could lead to being more than the item which was originally purchased.

Tip: If you compare credit cards to that of store cards and you find that a store card is a better option for you then this is okay but bear in mind that it is recommended that you only pay for certain goods such as electrical items and clothing whilst a credit card should be used for other spending (in case of emergencies etc)

Don’t be swayed by special offers

As with some credit cards, store cards which are on offer can have excellent special offers but and it is a big BUT, these are only often for limited periods of time and the charges can quickly go out of control and become impossible to keep up with.

There are many companies which offer store cards ranging from Argos to Marks and Spencer and before considering anything, always comparing credit cards and store cards together, way up the pros and cons and the costs involved and then decide which would be best to suit your lifestyle.

This is just one example of the many high street stores which can offer store cards to its customers

As with any credit cards, if you decide to take on a store card then I cannot stress the importance of searching around for the best deals possible which avoid higher interest rates. Anything over 19.9% is extremely high and would be in line with the charges of a VISA or MasterCard which overall could be used in more stores and won’t cost half as much.

Choose wisely, compare credit cards and stores cards and make sure you are happy with your decision.

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