Credit Card And Finance News

Students considering buying their Christmas presents using a store credit card might want to think again, after it was revealed that using the cards could result in spending double the money you would otherwise.

Using an Argos store card to buy a Playstation 3 will cost £611.28 instead of £349.97 if you pay back the minimum amount on the card each month, according to thisismoney.co.uk.

The website revealed that the cards have APRs of 29.9 per cent, which is more than five times the Bank of England's rate of 5.5 per cent.

Store cards have been investigated by the Competition Commission recently and companies were told to put warnings on cards that have an interest rate of more than 25 per cent.

A student looking to buy a DVD player from QVC should not use the store card there either, unless they are planning to pay it off quickly, according to the website. The DVD player could cost £362.10 instead of the £220 it should set you back.

Thisismoney.com has also warned credit card users not to spend more than they have over Christmas. Research by Halifax says that each shopper will spend £400 on average over the festive period.

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