Store Cards ? Are You Storing Up Problems?
8591
Finance > Credit
Mar 1, 2007
Michael Challiner -
Store Cards ? Are You Storing Up Problems?
The number of people with one or more credit cards has grown at an unbelievable rate in recent years. Like the mobile phone, the credit card has become a way of life for many people, something they?d be lost without.
The offer of a store card for your favourite store can be tempting and may offer opening discounts, invitations to special events (encouraging you to spend money in the store, of course) and the familiar ?If you take out the card today, you?ll get 10% off your purchases. It won?t take very long; we can fill the form in now. You may as well take advantage of the offer and get your discount at least.? You know how it goes and yes, there are some things you?d like and the discount is worth thinking about. Before you know what?s happening, you?re giving details of your current account etc., etc., etc.
It?s a familiar scenario. Over 40% of people who sign up in this way had no intention of doing so when they entered the store, according to the Office of Fair Trading, and yet they may well make a major purchase.
This isn?t a problem if you have the money available to clear the balance within the interest free period, which can be from 35 to 55 days, in most cases. However, if you?re unable to meet this time-limit you need to be aware that the interest on the outstanding balance can soon mount up.
The Consumer Credit card act sets down regulations for any loan under ?25,000. Whether or not a total overhaul of these rules is necessary is under consideration.
Data provider Moneyfacts provide some enlightening information regarding the variation in store cards interest rates. John Lewis, which includes Waitrose, has an APR of 13% and Marks & Spencer offer 18.9%, whereas Debenhams and Comets Timecard are currently charging 28% and 29.9% respectively.
Before you sign up to one of these cards, take time to consider:
The discount may be a good deal and if there is a purchase that you are seriously considering anyway and you have the money to fund the purchase within the interest free period.
What is the APR rate on this offer? How much will you be charged on the remaining balance?
There may be an interest free period. How long does this last and when it ends, what rate will be charged?
Payment Protection Insurance will be offered. Check how much this is going to cost and what benefits are offered. This is an option but could prove a blessing under some circumstances, such as illness or redundancy. Read the agreement carefully to find out more.
Remember that you?ll need to budget carefully for store card purchases ? it?s easy to overspend.
You don?t need to sign there and then. Take the agreement away and check everything, including the interest free period, APR, default and late payment penalties. Ask questions until you?re satisfied you fully understand everything.
The Office of Fair Trading endorses the above advice. They also advise that you compare the store card with other payment methods.
Don?t be hassled into taking out a card you don?t want by some pushy person who doesn?t really care whether or not you?re getting what?s right for you, as long as they get their commission for signing you up!
Remember, as with credit cards, the statements come in monthly. Keep track of your spending. Credit cards with low APR?s are, in general, a better deal than store cards, according to the majority of financial experts.
Take care and weigh up all the options.
The offer of a store card for your favourite store can be tempting and may offer opening discounts, invitations to special events (encouraging you to spend money in the store, of course) and the familiar ?If you take out the card today, you?ll get 10% off your purchases. It won?t take very long; we can fill the form in now. You may as well take advantage of the offer and get your discount at least.? You know how it goes and yes, there are some things you?d like and the discount is worth thinking about. Before you know what?s happening, you?re giving details of your current account etc., etc., etc.
It?s a familiar scenario. Over 40% of people who sign up in this way had no intention of doing so when they entered the store, according to the Office of Fair Trading, and yet they may well make a major purchase.
This isn?t a problem if you have the money available to clear the balance within the interest free period, which can be from 35 to 55 days, in most cases. However, if you?re unable to meet this time-limit you need to be aware that the interest on the outstanding balance can soon mount up.
The Consumer Credit card act sets down regulations for any loan under ?25,000. Whether or not a total overhaul of these rules is necessary is under consideration.
Data provider Moneyfacts provide some enlightening information regarding the variation in store cards interest rates. John Lewis, which includes Waitrose, has an APR of 13% and Marks & Spencer offer 18.9%, whereas Debenhams and Comets Timecard are currently charging 28% and 29.9% respectively.
Before you sign up to one of these cards, take time to consider:
The discount may be a good deal and if there is a purchase that you are seriously considering anyway and you have the money to fund the purchase within the interest free period.
What is the APR rate on this offer? How much will you be charged on the remaining balance?
There may be an interest free period. How long does this last and when it ends, what rate will be charged?
Payment Protection Insurance will be offered. Check how much this is going to cost and what benefits are offered. This is an option but could prove a blessing under some circumstances, such as illness or redundancy. Read the agreement carefully to find out more.
Remember that you?ll need to budget carefully for store card purchases ? it?s easy to overspend.
You don?t need to sign there and then. Take the agreement away and check everything, including the interest free period, APR, default and late payment penalties. Ask questions until you?re satisfied you fully understand everything.
The Office of Fair Trading endorses the above advice. They also advise that you compare the store card with other payment methods.
Don?t be hassled into taking out a card you don?t want by some pushy person who doesn?t really care whether or not you?re getting what?s right for you, as long as they get their commission for signing you up!
Remember, as with credit cards, the statements come in monthly. Keep track of your spending. Credit cards with low APR?s are, in general, a better deal than store cards, according to the majority of financial experts.
Take care and weigh up all the options.
Content Provider: http://www.traffichelp4u.com
Brokers Life Insurance offer you access to great deals on Credit Cards online.
Write a Review
Add to My Favorite
Refer it to Friend
Report Article
Other links owned by this user
Almost one pensioner in four does not have enough money to fund their retirement, research from Prudential reveals, and one property-owning pensioner in five thinks they will have to downsize to make up the difference. Along with those
Category:
When it comes to home contents insurance, it?s so easy to get left behind in your valuations. It?s simple enough to go through the rooms, in your mind. Lounge ? carpet, sofas, display cabinet and contents. Bedrooms, carpets again, beds, furniture ??. And
Category:
Is it coming round to time to renew your car insurance? Do you, like 23% of car owners, just accept quote and stay with your insurer? Does it matter that premium is 5 or 10 per cent more expensive than last years? Maybe it?s just not worth
Category:
The companies that loan people money then add on sky high interest rates might claim to be doing people a favour by offering them the chance to have instant cash. Instead, they are crippling the poor with debt. So says the Competition
Category:
The Council of Mortgage Lenders? figures are showing a growing trend in interest only tgages. From January to March 2002, 9% of new tgages were interest only. Now take the period from October to December 2005, and the amount of new interest only
Category:
In general, operty ices appear to be rising. Between January and May 2006, the uplift in house ices across the United Kingdom averaged 4.4%. In the event that this trend continues, then the yearly rise will be 13%. This will put the average house
Category:
You may have noiced an increase in your healh insurance premium recenly. Here we examine some of he possible reasons for his and look ino ways of combaing hem. According o he marke-research group Daamonior, medical inflaion is
Category:
The number of people with one or more credit ds has grown at an unbelievable rate in recent years. Like the mobile phone, the credit d has become a way of life for many people, something they?d be lost without. The offer of a store
Category:
Amnd ws 42 when she ws given the difficult news tht she hd ovrin cncer. The West Yorkshire womn received chemotherpy tretment fter dignosis, but Amnd becme one of the unlucky ones. She hd bd rection to the chemotherpy
Category:
Have you filled in a life assurance application recently? There?s a little box that strikes fear into the heart of the ?slightly overweight?. It simply asks you to state your weight. Do you go straight to the scales, undress to the state of nudity and
Category:
On June 1 st 2007, the law concerning the buying and selling of houses changes. From that date onwards everyone who wants to sell a house has firstly to prepare a Home Information Pack (HIP). And if you don't? You're in the frame for a
Category:
The Financial Services Authority has recently carried out a review of the way in which information and advice is given to retail customers purchasing financial products. One of the products which they considered was the sale of Critical Illness
Category:
Other links at Finance > Credit
Perhaps you made some unwise decisions with your money when you were younger, or an emergency situation simply got out of control,and you are wandering if you can get a credit card.
Category:
With gas prices climbing over the past few years, the gas rewards credit card has really taken off in popularity. Is it a good deal for you?
Category:
Credit cards are reasonably easy to get these days. In fact, you really do not have to do much in order to read about what offers are available - they automatically come to your door, or in your emails.
Category:
The Capital One Credit Card Company started back in 1995 and over the past ten years, it has become one of the top credit card companies. They offer their services to Canada, the United Kingdom as well as the United States.
Category:
Credit cards are an easy way to manage your monthly expenses, and get through a day without having to carry much cash. But they can also be the gateway for all sorts of financial difficulties if you are not careful.
Category:
Site Sponsor
Directory Statistics
Articles: 68228
Categories: 501
Yahoo Entertainment
