Don't go for the discount - store card deals

Remember shopping at Gap, Macy's, Banana Republic, etc.? When you are ready to purchase your items, the cashier would ask you if you wanted to sign up for their store credit card and get 10 or 15% off your purchase and for the rest of the day.

Of course, they don't bother telling you that the APR rate is sky high!

ABC Carpets 23.99% 0% APR for 6 months**
Radio Shack 23.85% 0% APR for 2-12 months**
K-Mart / Sears 23.15% 0% APR for 24 months** 20 days
Bloomingdales 22.90% 10% off first purchase -
Macy's 22.90% 10% off first purchase 25 days
Saks 5th Avenue 22.90% 10% off first purchase -
Fashion Bug 22.90% - 25 days
Lane Bryant 22.80% 15% off first purchase 25 days
Express 22.80% - 25 days
Ann Taylor 22.80% 10% off first purchase 25 days
Abercrombie & Fitch 22.80% - 25 days
New York & Company 22.80% - 25 days
Design within Reach 22.80% 9.9% APR for 12-24 months -
Ikea 22.65% 0% APR for 3 months 25 days
Neiman Marcus 22.25% - 25 days
Bergdorf Goodman 22.25% - 27 days
Circuit City 21.99% 0% APR for 3 months 20 days
Target 21.99% 10% off with first use 25 days
Victoria's Secret 21.99% Up to $75 back 25 days
Toys "R" Us 21.99% - 20 days
PC Richard 21.98% 0% APR for 12 months** -
Staples 21.96% - 20 days
Average 21.96% - 25 days

Brooks Brothers 21.60% 10% off first purchase 26 days
Lord & Taylor 21.60% 10% off first purchase 25 days
JC Penny 21.00% 10% off first purchase 25 days
Home Depot 21.00% 0% APR for 6 months 26 days
Gap / Banana Republic / Old Navy 21.00% 15% off first purchase 26 days
Barney's New York 21.00% - 26 days
Nordstrom 20.90% $20 rewards certificate 25 days
J. Crew 20.99% 10% off first purchase 25 days
West Elm 20.75% - 25 days
Pottery Barn 20.75% 5% off for 90 days 25 days
Best Buy 20.40% 0% APR for 3 months** 25 days
Fortunoff 19.92% - 25 days
Crate & Barrel 19.80% - 25 days

**Special interest periods may vary based on the cost of the item purchased or speed of repayment.

Usually, I kept low balances on my Bloomingdale's and Macy's cards, but I finally closed them after seeing them raise my APR to over 21%.

Comments

Posted by: Panerista
Posted on: March 26, 2008 02:08 PM

There is no such thing as a free meal, no?

Everything comes with a cost, and on this "free meal" you pay with interest (pun intended)

sometimes, I'm almost glad that I can't afford even buying at most of these places.

Posted by: James (Author)
Posted on: March 26, 2008 02:43 PM

Never a free meal. =)

Yea, you save some cash on that first day, then pay off the balance, but that's pretty much it. the only other times is when the store have some 25-30% sale and you can get a further discount if you use the store card, but savings can only mean something only if you use the card then pay it off. You would lose if you keep a balance on it.

Posted by: Peter
Posted on: March 27, 2008 04:52 AM

Very useful information, i never think about that the APR rate is sooooo high. this post must get more pubilicity as a warning for every consumer. good work James.

Peter from PublicPush

Posted by: Claire
Posted on: September 25, 2008 09:07 PM

LORD & TAYLOR FIRST PURCHASERS BEWARE!!!

If you return anything you bought using the first purchase discount, they will expect you to pay back the discount. Buy a $100 blouse, return it, and they still want you to pay $15 FOR ABSOLUTELY NOTHING!!! The are not interested in customers who pay their bills in full! If you take the card, make sure you really want everything you buy. I will pay it to make sure they don't put a blemish on my perfect credit, but I am pursuing complaints with Better Business Bureau, NJ Division of Consumer Affairs, and I am not ruling out pursuing a class action lawsuit against them

Posted by: Jen
Posted on: December 26, 2008 03:09 PM

gyys nothing is free they say get 25% off theyre all lying in my opinion well the box stores its just better to shop online because you know that you can save more with the big retailers like tycromedia.com and a few others