Credit Card information

Store Cards.

Store cards are rarely good value for money as they generally charge a much higher interest than is available through a normal credit card from your high street bank or other finance provider.

They often come with the offer of a discount from your purchase at the till and those who have ended up with a variety of these cards are often in a position with a number of high interest debts. In this case it would be sensible to consider moving these debts under a balance transfer to another card and closing the Store card/s.

These cards are sold at the point of and a quick credit check and application form completed in minutes allows a purchase to be made using the card.

Store cards do have some advantages as users will often get discounts, special offers, extra money off during sales, sale previews, magazines and details of special offers exclusive to card holders.

These advantages may very well be of benefit but the card holder should realise that these are marketing schemes to persuade you to purchase more on the high charging card.

If you can clear the balance within the interest-free period, the Store card need not be all bad news. It does require discipline to extract the the advantages of a Store card and avoid the disadvantages.

If you are not sure you have that discipline then avoid them!

Store card interest rates are inevitably higher than normal credit cards and the small print needs to be carefully examined. Payment Protection Insurance (PPI) is a popular add on but you should treat this option with great care. Read the page on PPI on yourmoney.co.uk before ticking the box.

Other small print may include that the card charges interest from the date you made the purchase and you have no free period of you miss the payment date.

You can find further useful reading on Store cards here:

The Uswitch site allows you to compare deals from various Credit Card providers.
http://www.uswitch.com/

Martin Lewis the TV Journalists web site always has information and articles on Credit Cards and balance transfers:
http://www.moneysavingexpert.com/

APACS LAUNCH CREDIT CARD ADVICE GUIDE FOR STUDENTS

We also have an updated page on general financial advice for students.

- New online guide for students provides key facts and tips for responsible borrowing at university

- 24 per cent of under 24s have a credit card, compared to 66 per cent of the population as a whole

APACS, the UK payments association, has today (15 September 2006) published a new guide, Cards and Students, which provides comprehensive financial advice for students about to start university.

The guide provides a wealth of information on borrowing, with a focus on credit cards, including:

• Tips for safe borrowing and good financial management
• Advice on protection against fraud
• A list of benefits and risks: 10 questions to ask before choosing a credit card.

While APACS figures show that only one in four people (24 per cent) aged between 18 and 24 has a credit card, a large number of students remain concerned about personal finance issues.

Sandra Quinn, director of communications at APACS, says:

"This advice guide is designed as a quick and easy checklist for students. It provides information they need to make informed decisions about their personal finances and clearly explains the various card payment options available to them."

Nowadays, most students expect to be in debt when they graduate and whilst it might be impossible to avoid student loan debt, getting a handle on managing your finances can make the world of difference.

We have an important role to play in educating all people, not just students, about responsible borrowing and the benefits and risks of using plastic cards."

The Student Guide to Credit Cards published by APACS is available as a PDF File here:
http://www.apacs.org.uk/media_centre/documents/StudentAdviceDigiGuide-15.09.06.pdf