Store cards are "the devil in disguise"

By Sarah Engle, Mon 16 Jun 2008 - Published in Credit Cards

$Store cards are \$

Some store cards are charging almost 50 per cent more than credit cards, analysis by Fool.co.uk has found.

Last year, the Competition Commission brought in new rules governing the administration of store cards that charge annual percentage rates of 25 per cent or more.

However, it has been revealed that store card providers are managing to beat the Competition Commission by offering cards at just below the 25 per cent threshold.

The research shows that some have managed to increase their interest by as much as seven per cent while remaining below the specified 25 per cent.

Ed Bowsher from Fool.co.uk said: "Store cards are the devil in disguise. They initially offer attractive benefits and bonuses, which can be hard to resist, but there is a downside to grabbing these discounts and deals."

Credit cards can be a better alternative as long as you compare offers to make sure you get the best deal.

Meanwhile, according to Apacs, as people use debit and credit cards as well as electronic payment systems more and more, we could soon be able to pay for things using our mobile phones.

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