What would you choose, credit card or store card? Which one of these cards would be more beneficial to you? Which card has the best offers and the best value for money? Well, we intend to find out.

Credit Cards

So, what do credit cards have to offer? Depending on which credit card type and company you go for the offers are variable. Most APR’s are typically between 11% and 16% although if you have a poor credit history the APR can go up as high as 30%. Many companies offer introductory rates at the beginning of your contract which could be 0% on purchases for the first six months or a 0% balance transfer if you are changing your card to another company. There are also reward cards where you can save points to exchange for vouchers or cards that offer cash back or air miles.

Store Cards

What do store cards have to offer? Store cards have a wide range of APR from around 13% to 29% depending on which company you have your card with. There are some companies which have introductory offers with most stores offering 10% off goods when you take out a store card with them and Argos who offer you six months buy now pay later when you spend £195 or more. Some stores can also offer you free catalogues or magazines of the company. Store cards also offer reward loyalty schemes with cash back to spend in-store.

My Conclusion

Store cards more often than not have a higher APR than the traditional credit cards and you can only use a store card at whichever retailer you got your card from, but with credit cards you have a much wider choice of shops, restaurants or petrol stations etc for which to use your card.

You can change from one credit card to another with your existing balance, with offers of 0% balance transfers the industry have made this become a very easy transition to make. You cannot move your balance from one store card to another. Both cards offer roundabout a 56 day interest free period. Both store cards and credit cards offer you loyalty schemes so it would be whichever was more beneficial to you although research has found that 25% of people with a store loyalty card do not claim back their benefits.

All in all, my view is that credit cards give you more freedom to spend when and where you like and isn’t as expensive as having credit on a store card.