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How store cards really work

The '10% off today' offer at the till is almost always a credit application. Understanding what you're signing up for.

Store Cards3 min readReviewed July 2026

A store card is a credit account issued by a lender in partnership with a retailer. The introductory discount is real, but the underlying APR is typically 25%–30%+ — significantly higher than most mainstream credit cards.

Store cards often carry 'interest-free' promotional periods on individual purchases. If the balance isn't cleared within the offer, interest is usually backdated to the purchase date — a nasty surprise for anyone paying the minimum.

You can include store card debts in a Debt Management Plan or IVA in exactly the same way as other unsecured debts. Closing the card once it's cleared prevents future high-interest borrowing but doesn't affect your credit score for long.

General information, not personalised adviceThis article is written to inform. It isn't personalised debt or legal advice, and Debt Compass is not authorised by the Financial Conduct Authority. A team member can talk you through the options and point you to a free debt help service or authorised insolvency practitioner before you decide on anything.