Interest rates on store credit cards have climbed by an average of one per cent in the last six months, new figures show.
According to a study by MoneyExpert.com, the most expensive such credit card now charges people more than 30 per cent.
The research also found that the average rate on a store credit card stands at 25 per cent, this despite recent criticism from the Completion Commission that providers were making "excess profits".
Sean Gardener, director of MoneyExpert.com, explained that while store credit cards can provide a good discount on the initial purchase they are used for when it comes to borrowing on them they are "a complete rip-off".
Mr Gardner said: "As soon as the interest free periods expire, store card users will face huge annual percentage rates."
However, the lack of other forms of credit could mean people are forced to put the money on to their credit cards, he added.
Yesterday, Peter Harrison, credit card expert at Moneysupermarket.com, suggested Capital One's rivals could attract more customers after the firm decided to move away from long-term zero per cent interest offers .
News Side
Credit Crunch Savers
Tesco Insurance Sale
50% discount on car and home insurance.
Offer ends 7th Jan 09
Offer ends 7th Jan 09
Post Office Instant Saver
Protect your savings with the Post Office saver
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Virgin Credit Card
0% APR on balance transfers for 16 months
Store credit cards more expensive, figures show
Tue, 11 Nov 2008
Recommended links
Great credit card dealsCompare best buy credit card offers
Credit Card Payment Protection Insurance
What to look for in a credit card
Compare today's credit card deals
Search for a credit card
Current 0% credit card deals
Rate warning over store credit cards
Warning over expensive store credit cards
Store cards shocking, research shows
news content
Search
