Nobody plans a store account. It happens at the till: "You qualify for R6,000 credit and 20% off today's purchase." Six months later there is a R7,000 balance charging 23% interest for clothes you have already washed thirty times.
Why store accounts hit different
A store account is unsecured revolving credit — the same product as a credit card, but usually with:
- Higher interest — often at or near the maximum the NCA allows.
- Monthly account fees and club fees you never asked for. That "club" magazine and accidental death cover can add R60–R100 a month, silently.
- A psychology problem — the card only works at one shop, so the shop becomes a habit. You "pop in because I have an account there". That sentence has cost South Africans billions.
The real cost of that 20% opening discount
Take R3,000 of clothes with the 20% signup discount: you "save" R600. Carry the balance for a year at 23% with minimum payments and fees, and you pay roughly R900–R1,200 more than the shelf price. The discount was bait, and the maths knows it.
How to close a store account properly
- Stop swiping it today. Take it out of your wallet and out of your phone.
- Pay it down with focus — it is usually your highest-rate debt, which makes it first in the avalanche.
- Cancel the extras immediately. Phone and cancel club fees and embedded insurance — you can do this without closing the account, and it is instant savings.
- When it hits zero, formally close it. Get written or email confirmation. A dormant open account is a temptation with your name on it.
- Check your credit report a month later to confirm it shows closed.
But doesn't it build my credit score?
A store account can help a thin credit file — if the balance stays under 30% of the limit and payments are never missed. In practice, most people run them near the limit, which hurts the score. One well-managed credit card does the same job with better terms. More on that in our credit score guide.
If a shop has to lend you money to make the clothes affordable, the clothes are not affordable yet.
Khaya flags every account fee and interest charge on your statements — including the club fees you forgot you agreed to.
