Don't be pushed into taking out a store card this Christmas
| by R. Charlton | December 10, 2008
With consumer spending at rock bottom levels and retailers suffering the financial losses from the economic downturn it is little surprise that so many retailers have started their January sales early in a bid to try and increase spending amongst consumers in the run up to Christmas, and to try and boost their own sales figures and profits.
However, whilst people can certainly bag a bargain or two on the High Street at the moment, with many retailers slashing prices to draw in customers, some people may get caught out by the various tactics that many retailers have to try and extract money from customers in other ways.
One of the ways in which retailers make millions of pounds is through getting customers to sign up for store cards. For retailers, this can be a big earner, and it is therefore little wonder the sales staff try and push these store cards to people who are making purchases at the tills. Many people, sadly, get quickly sucked in by the offer of a slight discount, but often end up regretting taking out the card.
Those that do take out store cards could find themselves quickly getting into debt, as store cards come with a very high rate of interest, so spreading your balance on repayments could really cost you. In addition, it means that you are restricted in terms of where you can get credit, as you can only use the card at a certain retailer or chain. All in all, using a store card to try and get your through the expense of Christmas can end up costing you big time over the longer term.
Most people will find that they are better off taking out a suitable credit card for their Christmas spending rather than being faced with the expense of a store card. You can look at credit cards such as reward credit cards, including to compare cash back credit cards for those that will be repaying their balance within the interest free period, or compare 0% purchase credit cards for those that want to use the card to fund Christmas but want to spread the repayments over a longer period without being hit with interest charges.
Anyone in a rush can compare instant decision credit cards to get approved in time for Christmas.
However, whilst people can certainly bag a bargain or two on the High Street at the moment, with many retailers slashing prices to draw in customers, some people may get caught out by the various tactics that many retailers have to try and extract money from customers in other ways.
One of the ways in which retailers make millions of pounds is through getting customers to sign up for store cards. For retailers, this can be a big earner, and it is therefore little wonder the sales staff try and push these store cards to people who are making purchases at the tills. Many people, sadly, get quickly sucked in by the offer of a slight discount, but often end up regretting taking out the card.
Those that do take out store cards could find themselves quickly getting into debt, as store cards come with a very high rate of interest, so spreading your balance on repayments could really cost you. In addition, it means that you are restricted in terms of where you can get credit, as you can only use the card at a certain retailer or chain. All in all, using a store card to try and get your through the expense of Christmas can end up costing you big time over the longer term.
Most people will find that they are better off taking out a suitable credit card for their Christmas spending rather than being faced with the expense of a store card. You can look at credit cards such as reward credit cards, including to compare cash back credit cards for those that will be repaying their balance within the interest free period, or compare 0% purchase credit cards for those that want to use the card to fund Christmas but want to spread the repayments over a longer period without being hit with interest charges.
Anyone in a rush can compare instant decision credit cards to get approved in time for Christmas.
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