subject: How to Avoid New Store Card Charges [print this page] How to Avoid New Store Card Charges How to Avoid New Store Card Charges
Customers leaving some store cards inactive for most of the year can now incur a charge. But these fees are
Those who use the cards only once a year for the generous introductory offers will be in for a shock as 10 is taken from their account every six months.
Store card brands include the chains House of Frasier, Miss Selfridge and Laura Ashley, as well as many other high-profile shops.
Many customers are likely to be effected by these changes, which will be applied to store cards in the new year.
Do a credit card comparison and you'll notice that store cards have very high standard interest rate of up to 30%, they have often been considered one of the most expensive forms of credit.
But they remain very popular - there are currently 13 million store cards in the UK and 2.2 billion has been spent on them in the last twelve months.
This is mainly because savvy consumers pick-up the cards for their promotional introductory deals, which are attractive and very well publicised, especially over the Christmas season.
These deals include getting a certain amount off your final shopping bill at the store the first time you use the card.
Because of this, however, many customers apply for the card and only use it once or twice.
This way, they avoid spending money that will be enlarged by the high interest rates these cards typically have.
But now, these wily customers will pay a 10 charge for every six months they don't use their cards.
Customers will be informed of the changed, but it will appear in the small print of a general letter, which many are likely to miss.
The new ruling to cancel cards when they remain unused will also appear here.
Banks have defended their actions by stating that they are merely aligning the rules of their store cards with those of their credit cards some of which which also charge a fee for infrequent use.
Checking the small print of the card provider's credit card - if you have a use abroad credit cards - with the same issuer, for example.
A spokesman from the banks stated that they actually have no current plans to charge most credit card customers for not using store cards and they would notify them if they had any intention to.
Another way to avoid these charges to make sure that if you get a store card for Christmas, even as short notice for example by making applications instant decision credit cards you don't then forget about it and get caught out.
