Beware the dreaded store card
Print View - Published: Sat, 27 Mar 2010 at 12:31 AM
0 comments
Hi, I'm Victoria and I'll be filling in for Owe over the next few weeks. In terms of my credentials, I definitely think I qualify under the heading of ‘Dazed and Confused'. And, as a girl who's served in financial services for five years, I've learnt a few things about money.
I love to shop; it would be no exaggeration to say that I'm Olympic standard. But there is one thing that will strike fear into the heart of even the seasoned shopper, and that is the store card gauntlet that is now synonymous with the checkout experience.
With the UK in the vile clutches of debt and looking to retail therapy to cheer them up, it is staggering how easy it is to buy now and pay later. But beware the consequences... odds are you will still be paying long after the must-have top has fallen out of style.
The terrifying part about the store card is it lulls the shopper into a false sense of security. Packaged up to look like some kind of loyalty scheme, and often with the promise of free gifts and discount days, this is an elaborate honey trap to sign you up to a credit card with the kind of savage APR that would make even the most hardnosed bank manager cry.
The seemingly guileless sales assistants, with no financial experience to their name, prey on normally level-headed ladies who wouldn't think twice about turning down a standard credit card. But after much persistence last year, I was effectively shamed into taking one, despite wheeling out an arsenal of carefully practiced excuses culminating in me suggesting that my credit rating was too poor.
To my devoted sales assistant (who no doubt smelled the potential incentives - and my fear) my excuses sounded like a challenge and she eventually wheedled me into signing up just "to see".
The result was me paying a 38 per cent APR mark up on some shopping that, if I had been sensible, I could have paid for on the spot. I did get a free bag for my trouble... the clasp broke on its maiden voyage.
I am no pushover, and if I bowed in the face of the pressure, then I can't help but worry for more vulnerable shopaholics who take up these ‘too good to be true' offers with no comprehension of the long-term implications. If you can't afford to shop then the reality is that you simply shouldn't be shopping.
Trusted chains making the decision to drag unsuspecting customers into yet more debt seems incredibly irresponsible. If shops will persist in wilfully leading the British shopping nation into debt then the very least they should do is invest in proper training for the shop assistants they entrust with the duty of selling.
Seventeen-year-old girls doing their first job have no business advising me to ‘give it a go' when I say I think my credit rating is risky. Had I been refused (which, unfortunately I was not, the sales assistant effectively called my bluff) this would have put a nasty footprint on my credit file and affect my likelihood of obtaining a mobile phone contract, mortgage or other essential future life decision. Why wasn't I warned about that?
Until these stores do start operating more responsibly then I can offer only one piece of wisdom: just say no. For those who need credit cards, there are much better deals out there. Credit is not a decision that should be taken lightly, and with offers in the market place like interest-free credit periods, you will definitely get more by doing your homework.
About the Author
Read more about credit cards at http://www.confused.com
Want More Free Credit and Financing Tips?
You'll get insights, interviews and helpful tips to repair and grow your credit and borrowing power all for free!.
The Credit and Financing eTips has a No Spam policy. Your information will never be shared or sold.
