Credit Cards 'would Usually Be Chosen Over Store Cards'

Interest rate tends to be lower on credit cards than store cards, it has been stated. When weighing up the advantages of both credit cards and store cards pound for pound, the former would usually be chosen ahead of the latter. This is according to Mark Bouris, executive chairman of wealth management and advice firm Yellow Brick Road, who stated one of the reasons for this is because the interest rate tends to be lower, News.com.au reports. He also stated these Aussie credit products are usually linked to a person's internet banking, plus frequent flyer reward points can be collected on them. But he advised: "Do plenty of research before signing up for any card because there are good and bad examples of each type." "Credit cards tend to have slightly lower interest rates but they are still usually more than 15 per cent." What's more, Justine Davies, a finance author with a decade of financial planning experience, pointed out such products with a low interest rate are what most shoppers would opt for, plus she recommended people should be getting a card with the lowest interest level if they do not pay their debt back each month. And Ms Davies noted this can vary from ten to 23 per cent, which could be a huge difference to some. In addition to this, when comparing store cards with credit cards, Kerrin Falconer, a financial planner, stated the former tend to have a higher level of interest, plus there are annual fees and transaction fees at times. But she encouraged those looking to take out a product to figure out what they require a new card for, stating: "Like private health cover, needs are different and what works for one may not necessarily be the best choice for another." This comes after Noel Whittaker, director of Whittaker MacNaught, advised people with debt on their credit card to move it to another product with a low interest, the Sydney Morning Herald reports. By: Samuel Gooch
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