There are many store, particularly large chains, which offer the option of having a store card. You may wonder why you should consider taking them out though.
Interest Free Credit
When you buy something with a store card you will not need to pay for it right away. From the time that you buy it until a specified date you will get interest free credit. When you get your statement it will let you know when you need to repay the money that you spent and if you repay it all by that date you will not have to pay any interest. This can be really handy as it means that you can use the card to buy something and you have not got the money at the moment, you will have a bit of time to find it. You may even find that you will be paid before you have to pay the card off, which can be handy.
You may find that some store cards will allow you to have some sorts of deals, discounts or offers. Often the store will offer you some incentive for becoming a card holder and so you will be able to take advantage of this. It is wise to find out what the offers might be though to see whether it is worth it. You will find that some stores will have more enticing ones that others and so seeing which are the best could help you to choose which store to get your card from.
Buy Now, Pay Later
The main reason that some people like store cards is that you do not have to pay for things that quickly. When you get your monthly statement, you will have the option of repaying just a minimum amount of money which will cover the interest charge as well as a small repayment of what you owe. Then you will be able to leave the money unpaid. Each month this will happen and it could take you a long time to repay the debt. You can choose to repay bigger chunks or even pay off the whole lot if you wish, but it will give you the option to spread the repayment over a long period of time. You will need to be careful with this though because you will be charged interest and the interest on store cards can be relatively high compares to some other types of borrowing.
So, you can see that there are a lot of reasons why it could be a good idea to take out a store card. There are lots of shops that offer them as well, so you might think that it will be a good idea to get a few. However, you do need to be careful to make sure that you will be able to manage the repayments on the cards. Even the minimum payments might be difficult for some people to manage if they already spend almost all they earn or more. It is also worth noting that by just repaying the minimum you will hardly repay any of the loan and therefore the debt will be around for a long time and you will end up paying a lot of interest on it. So, it can be best to repay the full amount each month and then you will be able to take advantage of the interest free credit and the deals without having to pay the interest. You should be able to set up a payment that will automatically do this each month so that it is easy and you will not forget. You will just need to be careful to only spend money that you can afford to repay.