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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.

Guidance, not personalised helpThis article is written to inform. It isn't personalised debt or legal advice — a Debt Compass adviser will discuss your options and eligibility with you before you choose a route.