Store Cards charging up to 60x base rate!
Yes, you read that right. A report just produced shows a large number of high street names have pushed the APR on their store cards to extortionate levels. The store cards are, in effect, types of credit cards – but they can catch unwary shoppers with their guard down. True, these cards let you ‘buy now, pay later’ (with some cards offering up to 59 days of interest free credit) but with interest rates of 17% on purchases and 25% (and upwards) on cash withdrawals do you really want to be paying through the nose?
So, who are the worst offenders? Well, in some cases, you’ll be rather surprised. At the top of the list is Creation Account Cards (can be used in stores listed in the DUET network) who charge 30.9% APR! When you consider that the current base interest rate is 0.5% you get an idea of how much money you’re losing by using one of these credit cards.
Other companies caught firmly in glare include Burtons, Dorothy Perkins, Edge Card, Miss Selfridge, Outfit and Wallace (all with APR of 29.9%). Slightly lower down the ladder, but no less extortionate, come Bhs, Karen Miller, New Look and Oasis who all feature an APR of around or just under 29% on their credit cards.
Just out of interest, the lowest APR seen on this list is with Fortnum and Mason who still manage a staggering 15.3%!
What can you do? It’s simple – pay your store card off as soon as possible, then bin it (take great satisfaction in cuting up your credit card before burning/throwing it away 🙂 ). If you’re not in a position to pay this off quickly the best bet may be to get yourself another credit card. Now, this may seem counter-intuitive but what you’re looking for is a card that gives you 0% on balance of transfer for a period of time. Move your debt to the new card then take great pleasure in destroying your store card! Then you can concentrate on mopping your debt with your new interest free credit card. (Tip: put your new card away somewhere and don’t be tempted to use it – some credit card companies will charge you full interest levels once you make a purchase on it)