Credit Card News

Consumers 'often use store cards as a last resort'

15-04-10, 03:58 in Credit Card News
Consumers 'often use store cards as a last resort'
Store cards are often used as a last resort by people who have no other way to get credit, an expert suggests.

However, Pierre Williams, head of research at MoneyExpert.com, has noted the bad reputation that such products have among certain industry watchdogs.

He commented: "Store cards have always provided a last resort option, albeit an expensive one, for many borrowers."

They are "arguably mis-sold in many cases," he believes, while "watchdogs have repeatedly condemned them".

Mr Williams also pointed out that some people might apply for a store card simply to gain a one-off discount in a shop.

The expert's remarks follow the publication of Datamonitor figures which relate to store card borrowing.

Demand for these cards fell by seven per cent last year, the organisation's research highlighted.

Meanwhile, in the coming four years, the firm believes that the amount of store card lending may drop even more.

Posted by Tom Burroughs.ADNFCR-2660-ID-19723692-ADNFCR

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