Can it ever make sense to have a Store Card?

Store cards used to seem like a great idea. If you regularly shop with one retailer then a store card acts just like a credit card but specific to your favourite brand and with lots of benefits – doesn’t it? Although the idea may be sound in principle, store cards have recently been labelled “the devil’s debt” because more than two thirds of the cards on offer come with interest rates on purchases of 25 – 30%. So, is it ever going to be worth making purchases with a store card? Why do people have store cards? As well as the convenience of buying without cash, store cards have a number of other benefits too. Many offer discounts on purchases – the New Look card, for example offers 20% off a second purchase – and if you have a store card at somewhere like Topman then you’re entitled to free delivery every time you buy online. Store cards come with a credit limit just like any other credit card. However, these are frequently increased over time as customers remain loyal
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Amigo Store joins Solution Loans | FCA to investigate Rent-to-Own sector

The FCA, who regulates amongst other things consumer credit in the UK, announced today that it may impose a price cap on high street rent-to-own companies, such as BrightHouse and Perfect Home. We ve already blogged about the high costs of buying typical household appliances from this type of company: Do rent to buy retailers make financial sense? Is high street rent to own a sensible financial choice? The FCA stated that this review is part of a wider review of high cost consumer credit that also encompasses unauthorised overdrafts. It s initial analysis of the UK high cost short term credit market led to a price cap being applied to payday loans at the start of 2015. In the 18 months since that cap was put in place the number of payday loans issued has reduced by 800,000 with far fewer people falling into arrears and defaulting on their loan. The Review of Rent-to-Own is very Welcome The UK rent-to-own sector has grown considerably in recent years. There are now hundreds of stores s
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