Having clothing store credit cards allows you to buy that denim jacket, sparkly top, or pair of stilettos that just shouts: “Buy me now!” Even if it’s the end of the month and you are scrimping for your last tin of baked beans, putting the clothing item on credit means you don’t have to wait until your next pay check to buy it.
Which stores offer credit cards?
These days, most clothing stores will be more than happy to get you sign on the dotted line to open an account. In fact, they often offer various bonuses and rewards for doing so, such as getting money off your next purchase or being offered a free gift.
Some of the major stores where you can get your goods on credit are (to name but a few):
To find out if your favourite clothing store offers a credit card or account system, just give them a call or enquire within when you visit there next.
Resist the row and rows of clothes
Having a clothing store credit card sounds ideal, but you need to keep temptation at bay because many clothing chain stores charge high interest rates on your credit purchases. Particularly in the current harsh economic climate, many people are cash-strapped and resort to buying on credit. However, this is only prolonging the problem; in fact, it actually makes it worse. Buy now-pay later also means buy now-pay more.
On a 6 month payment plan, there is usually no interest charged unless the customer falls behind on the payment. In this case, interest may be levied at around 30% to 35%. On a 12 month payment plan the interest is charged at 2.66%, amounting to 30% to 35% per year. But if you default on payments on a 12 month payment scheme, you will be charged extra interest of about 30% to 35% per year. This means that you will be paying interest on interest, so if you choose to make use of a payment plan make sure that you can afford the monthly payments so that you don’t slide even deeper into the red.
Truworths claims to have the lowest interests among other major stores. Truworths has a 6 month account without interest, the store as well as loner payment plans of 12, 18, or 24 months on which an interest rate of 2% per month is charged, no matter if it is a 12,18, or 24 month plan. This works out to 26.5% per year.
Hints and Tips of being a savvy shopper
- At most clothing stores, you have the option of a 6 month account offered interest-free or choose an extended payment plan of 12 to 24 months for which you will be charged interest. It is in your…well… interest to stick to the 6 month payment plan to avoid running up a high tab of interest on your credit purchases.
- Beware of other fees – most department stores also charge you a monthly fee as lost card protection. There may also be other fees such as club membership fees or subscription fees for a monthly magazine. These costs may be optional, so be sure to opt out in case you can avoid paying these costs.
- The interest rates charged by the banks fluctuates dependant on the current interest rates in to broader economic sphere, so beware that you could be charge more on what is already owing in your account.
It’s not all doom and gloom in the world of clothing store credit cards. If you are a disciplined card holder, having an account at a clothing store can help you to get a good credit record. If you buy on account but pay instalments regularly you will be doing your credit records a favour by showing that you are a responsible credit holder.