Shoppers place too much credit in store cards

Store cards are among the most expensive forms of credit, but used wisely may also be the cheapest. Infochoice general manager Denis Orrock said interest rates were as high as 27.5 per cent on store cards, a type of credit card offered by retailers such as Myer or David Jones. However, there is usually no annual fee on store cards. Orrock suggests that shoppers look at cheap credit cards. The Virgin Money credit card, for example, charges 12.4 per cent interest, with no annual fee.

Advertisement