by S. Graveson

Created on: August 07, 2010

Credit cards are often a major financial tool, most adults have one and they have always been seen as one of the most flexible forms of credit. Usable almost anywhere and with manageable interest and credit limits. However their evil sibling is the much maligned “Store Card”, the anti-credit card that despite having very similar concepts are very very different. Though they are often seen as the devils credit and need to be avoided at all costs, they do occasionally actually have pros that will entice shoppers into getting them. Sadly as with almost every form of credit the major problem is education, customers aren't educated on the problems and advantages of various forms of credit, and this is where the problems start. An educated customer can very easily avoid the pitfalls associated with credit, especially Store Cards.

Like a credit card a Store Card holds the possibility of a customer buying now and paying later, which can serve as a massive advantage for some customers. Though the uneducated customer will find themselves substantially out of pocket as Store Cards typically cost much more than a regular credit card in terms of interest (often around 30% on purchases). Con right? Yes and no, if a customer is educated they can avoid the interest (like you can with a credit card) if you pay off the full balance of card by the due date. Though most customers don't know they can avoid the interest due to it being hidden well inside the information you get they can effectively get “free credit” on a store card like they can on a credit card.

The general lure of a Store Card is that you get an attractive introductory offer, things like 10% off that days purchases in the store. For most customers this is a delightful offer that tempts them into getting the card. The thought that runs through their head is one of “save now”, the general instant gratification of modern day society dictates any other thoughts. Although generally “living for the moment” can be a bad idea, an educated customer can again take advantage of this giant pro. This is the key thing going for store cards. Feel free to take advantage of the offer, as long as you can pay off the spend before the due date and you've effectively taken advantage of the offer for no penalty. After this their usage actually becomes incredibly limited and you're better off cutting it up and calling them to cancel it (call the phone number on the back of the card or on

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