2.11 Store Cards

Store cards could technically be classed as a type of credit card because they work in much the same way.

However, while credit cards can be used more or less anywhere, store cards can only be used in a specific store or group of stores.

When you get a store card you open a credit account and get a credit limit, like you would with a credit card.

However, you would literally only be able to use that credit card in the store that gave you the store card, or other shops run by the same group.

Store cards are not to be confused with ‘store-linked’ credit cards. Some supermarkets, including Sainsbury’s and Tesco, offer credit cards but they are run by the branches of the supermarkets’ banks and can therefore be used anywhere that displays the card brand logo.

Shops usually offer 10% discount on anything bought in store when using the store card for the first time. However, the interest charged on store cards is usually well above 20% per year.

Store cards can be great ways of getting discounts in your favourite stores but they only present value for money if you pay your bill off in full during the interest-free period (usually 30-56 days).

Another benefit of having a store card is that, sometimes, they will give the cardholder special discounts and vouchers for the store as a gift around the time of the cardholder’s birthday.

However, if you are thinking of using a store card to borrow money over a long period of time, you would be much better off with a standard credit card because they will generally be cheaper, offer better deals plus, you can use them anywhere.
 

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