Store Cards are similar to credit cards branded with the name of the store that issues it and can be used only to purchase goods from that chain. They are often promoted heavily in stores and can initially appear attractive, but beware there are many more disadvantages attached to them. Here are 10 very good reasons to avoid them….

1. They charge excessive rates of interest.
   The interest on most store cards is often double that of ordinary credit cards.
2. Hiding the facts.
   It often isn’t very clear when you sign up in store as to what the APR or interest rate is. One thing’s for sure, it will be high!
3. Pushy Sales Methods.
   Shop staff are usually incentivised by commissions for signing people up and as a result they can be very persistent.
4. Untrained Sales Staff.
   They are often promoted by untrained shop staff, who have little idea of the impact and associated dangers of such high interest rates.
5. Limited Offers.
   The common ‘carrot’ to sign up, is a 10% introductory discount, after which you don’t get any further offers.
6. They’re targeted at the young.
   This is the first piece of credit many young people get. They’re an easy target and often spend on these cards without understanding how to manage them, racking up expensive, ill-afforded debts.
7. They charge us more and get our business.
   With these cards the stores guarantee that we spend on them in their shops. Yet to do this they charge us more even than a credit card. So much for loyalty!
8. The OFT is concerned about them.
   The Office of Fair Trading is concerned about the sales tactics used here and advise you to take the forms away and read the small print carefully. If you do this, stores generally then refuse to give you the introductory offers!
9. Christmas is coming.
   This makes it more important than ever to try to avoid using store cards wherever possible. This is because of the tendency to overspend when you enter the store for which you have a credit card .The reality of spending too much on store cards sinks in when you get your statement in January. Not such a Happy New Year!
10. They charge excessive rates of interest.
    OK, this one repeats the first reason, but that’s because it’s worth repeating again and again and again.