In store credit up 24% in March
In store credit, including store credit cards, increased by nearly a quarter in March compared with the same month in 2008, according to the Finance and Leasing Association (FLA).
The accounts now make up 1.5% of the credit market.
Household furnishing and electrical items are often paid for by store installment credit and there are many good deals available, according to the FLA.
The increased popularity in this usage may be because people are choosing to improve their homes rather than moving because of the downturn, the FLA suggested.
Head of research and chief economist at the association, Geraldine Kilkelly, said: "We have seen a similar trend in recent months in the motor market. The proportion of car sales represented by instalment-type credit available in the dealerships has grown from 48% to 54% over the last year."
Tesco has recently launched a credit card which allows customers to earn Clubcard points on purchases made on the card.
The credit card offers 0% interest on all purchases for 12 months from the time the account is opened. It also pays 0% on balance transfers for six months from opening the account, with a 2% fee on all balances transferred in the first four months.
Written by Sarah Wilkins ©
