Loan or store credit
Store credit is regulated credit with the same disclosure requirements as any loan, and it must give you a pre-agreement quote. Comparing it properly against a loan means comparing the total payable — including the discount a cash buyer could have negotiated.
A genuine interest-free period is real, but the initiation fee, monthly service fee and compulsory insurance still apply. Interest-free is not cost-free, and the quote will show you the difference.
A cash buyer has negotiating room a credit buyer does not. Before comparing, ask what the price is if you pay outright — on appliances and furniture the gap is often substantial.
Then compare properly: the discounted cash price plus the total cost of your loan, against the total payable on the store agreement. That is the only comparison that answers the question.
Check the insurance line on the store quote specifically. Compulsory cover added by default is where two apparently similar offers most often diverge.
Related
Sources and last checked
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.