Despite soaring average APRs nearing 31%, consumer interest in store credit cards is on the rise, according to a recent LendingTree report. The average APR for new store credit cards has reached 30.78%, marking a significant increase over the past few years. Notably, 29% of consumers express a likelihood of applying for a store card this holiday season, a slight uptick from last year. The report highlights a generational divide, with younger consumers, particularly Gen Z, showing a higher propensity to apply for these cards compared to older generations. Additionally, more Americans now prefer store cards over buy now, pay later (BNPL) options, indicating a shift in consumer preferences. While store cards can provide valuable discounts and rewards, potential applicants are urged to proceed with caution due to high interest rates and the risks associated with special financing offers. Understanding the terms and conditions of these cards is essential for making informed financial decisions.
Read the full article here.