Taking out a store card should be considered carefully and might be best avoided in most circumstances, according to the business section of the Times Online.

While many high street shops offer store cards with reward points and discounts on their own products, they often charge very high interest rates.

Some store cards have interest rates as high as 30 per cent so for those who want a secure borrowing environment, a secured loan may be a better option.

A recent study by Nationwide revealed some of the negatives associated with many store cards, including some of the complex payment terms that often fool customers.

The building society also found that the worst store cards were charging almost double the rate of other borrowing options.

With cards from Miss Selfridge, Burton and Dorothy Perkins all charging an annual percentage rate of over 29 per cent, consumers may wish to take out a secured loan where there are less catches when it comes to borrowing.

Over two billion pounds was spent on store cards last year.
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