 |
 |
By Julia Kukiewicz Staff Writer
Monday, 10 November 2008
|
ACTUALLY, there are 222.7 reasons to avoid the Easy Shop credit card currently available at Argos.
Amazingly, 222.7% is the highest interest rate you can expect to pay on the card.
More amazing still is the fact that that figure isn't a fluke or a result of mis-using the card: the credit card advertises a 183% interest rate on its own website.
At that rate, £300 re-paid in £9 payments over 56 weeks becomes £504. That's £204 straight out of your pocket and into Provident Personal Credit's, the lender working with Argos.
The credit card allows shoppers to borrow £100-£500 to spend in Argos stores, targeting cash-strapped shoppers over Christmas.
How or why Argos would risk their brand's good name by allowing such crippling rates of interest is likely to remain a mystery. But why would consumers feel that they had to give away so much of their hard-earned cash?
Here are our top four excuses - and the best alternatives available.
"It's Simple and you know what you're getting"
Provident Personal Credit's own website claims that applying for the credit card is "simple and straightforward" with "no complicated forms."
Whilst simplicity is always a must when it comes to credit, knowing exactly how much it's going to hurt rarely makes getting punched any more pleasant.
Provident's website also suggests giving away cards as gifts to friends and family so they're obviously living in the realms of fantasy: "An Argos voucher that lets me pay for my gift twice over! How did you know?"
 If you want an easy application, the Capital One Classic credit card is quick to apply for and in most cases you will get an instant decision online.
"I need a bit of extra money for Christmas"
Life goes on, even in a recession, but the first question that you need to ask yourself is – do you really need the extra cash?
You might find that by down-sizing your festivities you can afford Christmas without the credit hangover.
If after you've done that you still need some extra cash there are two other options.
Option one: you could save up – there's still time to do this and it doesn't come with any strings attached.
Option two: you could get a credit card without the crippling interest by taking time to compare credit cards offering 0% on purchases.
The 0% period generally lasts for as long as 10 months or as little as 3. Either way it's about as far from 222.7% as you're likely to find anywhere.
Look at my guide to Christmas credit cards for the best options and how best to use them.
"I can't get a credit card"
Credit card rejections are on the rise and if you have a poor credit history you will have problems getting a credit card.
However, if you are committed to change the behavior which resulted in your poor credit rating there are a number of credit cards available to you.
Credit cards designed for those with a poor credit history generally have higher interest rates than normal credit cards – around 35% and up – and to improve your credit history you shouldn't carry your balance over.
Compare credit cards for bad credit score
"I can't get a better deal"
If you think that there isn't a better deal out there for you then you're looking in the wrong places.
Use one of Choosemoney's comparison charts which compares credit cards for just about every possible use.
Compare credit cards
|
