Big Lots Credit Card = Big Trouble For You

Big Lots storeEven though it is not heavily advertised, Big Lots does offer big purchase financing like furniture. They don’t have the application online but it is available in stores, typically promoted by sales clerks at the point of sale.

Should you utilize the financing? That would be a big fat no, and here’s why…

Problem #1: Unusual Fees

We all know banks have a penchant for dinging consumers with all kinds of random fees but the Big Lots credit card charges some unusual fees and takes this game to a new level…

reissued card fee

Really? A re-issued card fee? That might be expected on a prepaid debit card, but to charge this type of fee with a real credit card is ridiculous! In fact, there are no other credit cards in the market that charge this type of fee.

In addition to that, the Big Lots application says you “may be charged” a fee for the following:

  • Fee for payments made by phone (you have to pay for paying them?)
  • Fee for requesting copies of statements
  • Problem #2: Steep interest rates

    OK, now this is hardly that surprising – I don’t think anyone would expect a credit card from Big Lots to have a low APR. But regardless it’s still worth noting since the entire reason for shopping at their stores is to save money, right? If we were the top 1% types we wouldn’t be shopping there in the first place.

    So, based on the interest rates listed on their website, it doesn’t exactly look like you’ll be getting a bargain…

    • Variable Standard APR = 24.99%

    There’s nothing in the fine print which specified if its possible or not to get a better rate, so that’s highly unlikely.

    Problem #3: “No interest”

    12 months no interestOn their website There was a banner for “12 months no interest furniture financing” and next to it was a little asterisk. Be certain you read the fine print and see what that asterisk corresponds to, because this is not the same as getting a no strings attached 0%.

    fine print for Big Lots financing

    Make sure you understand what that means. With the Big Lots card you will be charged interest from day 1, retroactively, if you don’t pay off the full amount within that 12 month time frame. This happens to more people than you think and retailers that offer these “deals” are counting on a big percentage of their customers making this mistake – because it makes them millions in interest charges.

    In other words, the “no interest” only holds true if you pay off the full purchase within those initial 12 months.

    The Lesson: Make their card your last choice

    Perhaps you shouldn’t ignore this card entirely, because if your credit is terrible then this might be the best you can do. But before you apply for the Big Lots card understand that there are plenty of better deals out there. Check out this list first. Here are some entry-level cards I recommend checking out.

The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

As others have said, this article is about the previous Big Lots credit card issued by HSBC Bank before the accounts were bought out by Capital One and permanently closed. There are also a few inaccuracies, but I am not defending the old Big Lots credit card as many people were dissatisfied with it.

Anyone complaining about the new Comenity Capital card is just being impatient. The only valid complaint that I have seen here is that you cannot use it online, which makes sense because they have only had an actual online marketplace within the last year. They keep updating the cards which makes me think that they’ll add online purchasing soon enough.

I just got my biglot credit card, but when I tried to use it online they DO NOT accept this card only at biglot stores, how weird, can’t use their credit card online only at stores ??? WTF… will be closing this account for sure.

Biggest pain in the ace I have ever withstood out of any retailer. The card has been destroyed and I will never purchase on credit from these crooks again

Details would actually be useful.

I am only leaving a comment to laugh at the person who said 24.99% interest is a great rate ……lolllllllll

Actually “In Response”, the Laughs on YOU. If you actually READ what was written: … “…Doesn’t exactly look like you’ll be getting a bargain …”, which means it is NOT a good rate

This article was about the former Big Lots Cards. the current one has been rolling out over the last few weeks. As with all credit you need to look at all the fine print.

24.99% is actually a pretty fantastic interest rate. Many cards can go up to 29.99% APR. That, and neither the fees nor the interest terms are all that unusual. You just have to be an adult and make responsible decisions, which, judging by this entire article, I can see that you’re incapable of.

Credit is not for you. I’d suggest craigslist.

Hello, it sounds like this “Big Lots” card may come with A LOT of Headaches. Unfortunately, I’m in the process of trying to rebuild My credit. I’m kind of wondering if I might be denied instantly, and it will reflect on what credit I do have currently?? I’m really hoping to get some “Honest” feedback on people who had less than “Perfect” credit, and were either Approved Instantly or Denied right off??

Most credit cards do have ins and outs. From another respondent, they stated Big Lots seems to be a little choosier on who they approve, as in the past it was pretty simple with less than stellar credit. Of course that results in them chasing down a lot of their furniture to repo. You can google “credit cards for those w/low credit scores” and usually you’ll find a list of CC Co’s which approve for various credit, as in “Excellent” “Good” “Fair”. Because in general, ANY application for most any type of credit WILL report even the “inquiry” on your report. Eventually a certain amount of inquiries reflect poorly. So gain a better understanding of your potential to be approved BEFORE you apply for ANY credit. 🙂

Actually you can repair your credit by ordering from fingerhut. They helped me.

Kimberley Rodgers

Hello. I just applied about 2 weeks ago and was approved for this big lots line of credit. All I want to know is the card only good at Big Lots or can you use this as other stores per say the grocery store? Also is this account valid?

The person who wrote this is an idiot. ALL retail cards have a high interest rate, including Walmart, JC Penneys, Sears, Gap, etc. They almost always offer interest-free financing for a certain period, after which the interest is retroactive on the original balance. This is not just something Big Lots does. The author is banking on the assumption that people who shop there are uneducated regarding their credit and they also obviously have a bias against Big Lots. If that wasn’t the case they would have mentioned that this pratice is VERY common among retailers and is CLEARLY stated on the document you sign when applying for credit. Stop blaming everyone else for your lack of research.

I learned at the cash register on April 19th that Big Lots no longer accepts their own cards!! As I surprisingly asked the clerk when this happened, she very rudely informed me it was “back in February!!” When in fact it took place 19 days before this encounter!! Still!!plenty of time to make customers aware!! AWESOME CUSTOMER RELATIONS!! NOT!!

I priced a chair at Big Lots that was on sale through 3/31/2014.
I went back to purchase it on 3/28/2014 and the store had signs
everywhere saying they no longer accepted the Big Lots Credit Card.

That is so wrong! I have to cancel the card now because it is useless!

I just found this out last night when I opened my Big Lots capitol One bill. “effective March 31st the account is terminated”. I just got this on April 14th!. I called Capitol One and they said they didn’t have any specifics(yeah right)but that they were no longer servicing Big Lots accounts. I have had this account since 2009. When I first opened it to buy furniture had a credit limit of $1600.00. Paid it off in large payments way ahead of 12 month terms, but as soon as it was paid off they dropped my limit to $405.00.
DO NOT cancel your card! That will have a negative affect on your credit score. Capitol One has already closed it, it should reflect “closed by grantor” or something to that effect. Even if you close an account with a zero balance and good payment history it will have a negative effect on your credit. I’ve read many comments of people being denied card use while in the checkout of the store. Pathetic customers relations on the part of Big Lots for not informing it’s customers.

None of this sounds unusual, not even reissue card fee, most banks will do this as well.

My wife and I just purchased an Ashley sectional sofa during a 20% off sale and used the zero interest for six months promotion. We were planning on using a credit card at 11.9% interest and having it paid off in two months. The 6 months 0% interest offer is going to save us a few dollars in interest. But again, we had always planned to have the couch paid off in two months anyway. So in this case, the store credit card works in our favor. I got the impression from the furniture department employee while we were applying that they get a LOT of applications with a very low approval rate. The lady phoning in the application seemed very surprised when our app came back approved at well over the cost of the sofa. So my guess is this particular store credit card’s bizarre fee structure is an attempt to recoup some of the losses that is sure to come from issuing credit to a higher risk, lower income demographic. We often buy furniture at Big Lots but very little else that’s large enough a purchase to require financing, so this might well be the last time we use this card.

Yes Laura, you are right about the interest free thing. I have bought many things like this, the point is you have to have it paid off in the amount of time specified. My advise to anyone considering this is to make sure you can make the minimum payment asked and if you see that amount each month isn’t going to get it paid off in time then I suggest you pay extra each month. I try to buy things late in the year so that if I can’t get it paid off in time I can rely on my tax refund to pay the remaining balance before my contract runs out. It’s a no brainer people.

I got married and needed to change the last name on one of my credit cards, which I was happy with the company up to this point. I was requested of them to send in my original documentation and written previous info, and current info. I thought “no problem” they’re just being extra careful with identity theft, the next thing the agent said “with a $25 payment to re-issue another card”…….uhmmm, NO! They lost a customer just that quick. So, $5 fee is nothing to what some companies have!

I agree with Laura. It’s not the greatest sounding deal, but then again no department store credit cards are. That being said, this all sounds pretty standard for the type of credit it is.

Apparently you don’t do much business with 12 month no interest type of cards or programs. All programs like this add interest from date of purchase, it is not added to your balance until the promo period had ended. If you have paid the balance in full no interest gets added to your account. If you still have a balance, even $1 all the interest for the entire promo period gets added to your account. No payment/no interest programs work the same way. You are not required to make ANY payments during the promo period but if the balance is not paid in full by the end of the promo you get charged all the interest from date of purchase. This is nothing new & Big Lots is not being “sneaky” with these terms.

I never heard of reissue fees so I’m glad you told me about Big Lots. I would have gotten a card if I made a big purchase there.