Store card usage or not

Legacy_user

I recently succumbed to the "would you like a free £20 voucher?" in Debehams and went through the process of agreeing to have a store card. All I needed to do was make a minimal purchase and when I am billed, the £20 voucher will arrive.

No sooner had I left the store, that I remembered Martins words, "don't use store cards" or "pay off in full", or "cut them up".

The card arrived yesterday,no doubt the bill for the small purchase will arrive soon along with the voucher.

Is it my understanding that I should then either cut the card up, or not use it. Am I right in thinking I am under no obligation to use it?

unimaginative_user_name

It all depends on how you them. Store cards are only worse than credit cards if you don't pay them off in full as their APRs are generally higher than credit cards. If you are disciplined and don't spend more than you can afford to repay in full it's fine. If you can't then cut it up and enjoy your voucher!

You would need to check terms and conditions to make sure there is no minimum spend but my guess is they wouldn't have sent you the voucher if you hadn't spent enough to qualify for the offer.

exel1966

Martin's advice (when it comes to any card) is aimed at those who are not financially astute, forgetful or just plain lazy and irresponsible.

There's nothing wrong with holding and using store/credit cards. APR's tend to be higher on store cards and some do not offer BT facilities, but if you repay in full by your payment due date (just as with credit cards) you won't pay a penny in interest. If you don't you'll pay interest on the full purchase amount.

You're under no obligation to use the card once you have it. If you don't think you're going to use it again cancel it but only after receiving your voucher. If you ever use the restaurants in Debenhams you might want to keep it as it gives you 10% off any purchase made with the card.

The simple question to keeping or cancelling is - How disciplined are you ?

Just bear in mind that whilst holding the card it will show on your credit history and will show your available credit which may or may not impact future applications for credit.

System

I have never owed a penny. I never use a credit card, or on the odd occasion when it has been necessary, for whatever reason, I paid it in full within hours.

So, because I may use their restaurant, I will hang onto it for a while, if we don't use that facility, then it can go. Thanks guys.