Store credit card lending still strong
New statistics have shown store credit card lending is on the rise despite the difficult economic climate.
The Finance and Leasing Association (FLA) found retail store credit grew by 3% last year.
Meanwhile, even greater growth was measured in store installment credit, which grew by 7% in 2008.
Geraldine Kilkelly, head of research and chief economist at the FLA, said the figures reflect retailers' efforts to keep customers spending as the recession makes its presence felt in the high street.
She explains: "Store installment credit – consumers taking finance for smaller household items like sofas and electrical items - performed well, as retailers respond to tricky trading conditions by offering good deals to attract customers."
Earlier this week finance website creditcards.com reported store cards can be a boon for responsible shoppers by allowing consumers big discounts on one-off expensive items and sometimes offering interest-free financing.
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