According to a report today from the Competition Commission, store cards generally have a higher APR than credit cards, largely due to a lack of competition between the different card providers.
A spokesman for the CC, Rory Taylor, reportedly commented: "What you tend to find is several store cards bunched around the same APR. There are reasons why you might have a different APR for a store card than you would for a credit card but our finding was that the APRs were higher than they needed to be and that was probably down to the lack of competition."
Furthermore, credit levels were generally found to be lower on store cards. Taylor concluded that any press would help consumers read the small print and make informed decisions about their credit cards purchases.
The deputy director of Credit Action, Chris Tapp, joined the debate by reportedly commenting: "The way that store cards are marketed has been something of a problem, in terms of encouraging people to get into debt when they are not quite aware of what they are doing."
Store cards cost more than credit cards
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Store cards cost more than credit cards
Fri, 24 Aug 2007
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