Shoppers have been warned to look beyond enticing introductory offers to ensure they get long-term benefits from store cards and retailer-branded credit cards.
There are good deals to be had for savvy shoppers with reward points, cashback store vouchers and discounts all on offer, but doing your research rather than making a spur-of-the-moment decision at the till can reap its rewards.
Moneysupermarket said consumers will get much better deals from supermarket credit card products compared to store cards, which typically charge interest at much higher rates than major credit card providers, at around 29.9 per cent.
The best buy supermarket credit cards have typical interest rates of around 16.9 per cent, the same as some and better than many High Street banks.
They come with the usual introductory offers designed to lure customers in, but those with ongoing rewards once introductory periods have ended can really make using them pay off.
More... Splashed out at the shops? How to beat store card debts and avoid their traps The gender debt divide: More women turn to credit cards and loans to make up for their lack of income Looking for a credit card? Find the best deal Check your credit scoreMarks & Spencer sits atop of the Moneysupermarket table for retail credit cards due to its generous points rewards. It gives shoppers one point for every £1 spent at M&S, and for every £2 spent elsewhere. A hundred points are worth a £1 M&S reward voucher.
Cards from Tesco, the John Lewis Partnership (including Waitrose) and Sainsbury's offer similarly generous points rewards for spending on cards, with Tesco's Clubcard Credit Card providing the same points rewards when you buy fuel from a Tesco filling station as you would get in-store.
As with any credit card, you should make all attempts to pay off the entirety of your bill each month once interest-free periods have ended. Large purchases, which will take a while to pay off, should ideally be made when you have zero interest.
Paying your card off each month is particularly important if you have store cards, which have a higher-than-average rate of interest.
Kevin Mountford, of Moneysupermarket.com, said: 'It's easy to see why it can be tempting to open a store card, as the introductory offers that come with these can really help you save on the day of purchase.
'However, shoppers should be wary of the high interest rates that come with store cards, which will negate the advantages if the balance is not repaid in full.
'A credit card is a better option for those who want to spread the cost of a big purchase, as you can take advantage of one of the deals offering an interest-free period on purchases.
'In addition to these promotional offers, many of these cards also offer on-going rewards, which can help make your money go further. However these cards should also be used responsibly.
'Shoppers need to ensure they pay their balance off before the interest-free period ends, and that they aren’t late making a repayment so as to avoid being hit with a late fee.'
Store cards: Moneysupermarket's list of the top store specific cards for rewards.
Supermarket credit cards promise better deals in the long-run, but some store cards do provide ongoing rewards.
The Top Shop store card for example, after hooking customers in with £5 off on a £50 spend, will provide free delivery twice a year on purchases over £50, as well as 10 per cent off in store in the first week of summer and Christmas sales.
But, with 19.9 per cent interest, making just the minimum repayment each month would see the interest on £500 of spending mount up to £93.85 by the end of the year, so paying off your balance each month is vital.
Mr Mountford added: 'For some people, a store card can be a good option, particularly those who haven't used credit before as you will generally be given a low credit limit and be able to build up your credit rating if used correctly.
'However, don't just be lured by discounts at the till. Think about what is best suited to your needs and always read the small print, otherwise you may end up paying far more in the long term than your initial item cost.'
