Credit cards, store cards and in-store finance

Credit cards

These are a common way of paying for goods and services instead of using cash or cheques. You apply for a card in the same way as you apply for a loan and if you’re successful, you will be given a limit up to which you can spend. Credit means you can buy today and pay tomorrow, but at a charge if you don't pay off your bill each month. For more detailed information on credit cards see Credit cards.

Store cards and in-store finance

Many big stores offer finance deals or store cards.

• Store cards
  These are like credit cards. You fill in an application form and are given a spending limit based on your creditworthiness. They tend to charge higher rates of interest than most other loans. And you can usually only use them in that store or group of stores.
• In-store finance
  These deals may be useful to help you pay for expensive purchases such as furniture or large electrical goods over time. Some may offer 0% interest for a fixed period.

Top tips

1. Make sure you understand the costs and charges of these options.
2. Ask yourself whether a credit or store card is the best solution – a loan might be cheaper.
3. Don't take on more credit that you can afford to repay.
4. Don't sign up for a credit or store card without checking the interest rate (the APR).