You've battled through the crowds, you've fought with the obnoxious fellow customer and got hold of the dress you both wanted, you've tried it on in the changing room with the funhouse mirror that makes you look like the blimp from hell, and now you've reached the cashier to buy the dress after waiting in a pushing, thronging queue for 20 minutes. You're hot and bothered, and just want to pay and get home. So when the assistant offers you the inevitable store card, you're so flustered you agree to it without thinking.
But now, you're stuck with a piece of plastic that's more dangerous than a credit card. That innocent-looking rectangle is your ticket to phenomenally high interest charges and severe penalties if you can't match them.
The typical store card has an APR of 24.3%, compared to the average credit card APR of 16.72% That's almost double the interest rate for a piece of plastic you can only use in one store. Is it really worth it?
Sometimes it is. If you genuinely use a particular store frequently, and you can be sure of paying back any balances on a store card within a month, then you may benefit from discounts or be kept informed of up-coming deals and merchandise before other customers.
But in general, there is nothing a store card can do that warrants such a high APR. Getting a credit card instead will not only give you a lower rate, but be useful in many more places, for many more things. Store cards are just another way in which shop assistants can gain commission, which is why they seem so pushy about them. Credit cards, if you must have any type of plastic at all, are the safer, cheaper, lower-risk option.