Pay with a store card or customer card
Sometimes you can pay in stores with a store pass or loyalty card. You do not have to pay the amount immediately, you pay it later. There are two ways to do this.
- You pay the amount in one go later
- You pay the amount later in installments
The second way is a kind of revolving credit. You agree with the store how much you can borrow. That maximum is the credit limit. For example, you can buy items for $ 1000. Has the maximum amount been used up and have you paid back something? Then you can spend money again up to the credit limit.
How high is the interest?
The interest on store and loyalty cards is often higher than the interest that a bank charges for revolving credit.