222% Apr Card

With the race to attract new customer this Christmas, high street stores are offering a range of store cards and like most offers some will be better than others. Some cards offer punters cash back if a certain amount is spent whilst others are offering interest free for a set period of time. All of these seem attractive at first but there is always a catch, a way for the stores make their money back.

One card has actually been publicly branded as wicked as it enables the borrower to borrow up to £300 which they must use in store and pay it back at weekly rate of £5, borrowing £100 would mean you are on their books for 27 weeks resulting in the APR standing at around 222 per cent. If they choose to pay it off in 100 weeks then the APR is more than halved to 82.9 percent.

Many believe that the store is simply preying on the vulnerable; hitting them at their lowest time of the year. They will be refused from bank to bank and will only have this option left to get them through the Christmas period.

If you can afford higher repayments and have a good credit score then you should consider taking out a credit card opposed to a store card as the offers available on a credit card definitely outweigh what is offered through a store card. Ensure your credit score is at its best before approaching lenders; you can optimise your score by visiting companies such as Equifax.

By: Barry Loughran

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interest free credit cardsare available if you shop around, compare a number of credit cardsto make the right decision between the two types of cards.