Why Your Blue Nile Credit Card Is The Worst Financing Offer

BlueNile.com claims their credit card “offers compelling financing options” but in 2013 I beg to differ…

First of all let me be clear that I have nothing against Blue Nile. I applaud them for using conflict-free diamonds and generally giving lower prices compared to the brick and mortar jewelry shops. This review is nothing negative against the company, but rather Comenity, who handles the financing.

Their credit card can be a dangerous trap, depending on on which financing offer you signed up for…

Option 1: No Special Terms

If you charge your purchase to the card without using a promotion, then there will be a 25 day grace period, as is the case with most credit cards.

But if you don’t pay it off before the grace period, the APR you’ll be charged will be quite high coming in at 26.99% per the cardholder agreement (PDF file).

Option 2: No Interest If Paid In Full

This is perhaps the most dangerous of the three options…

At least they’re transparent up front about how this works. Notice the sentence at the top that says what will happen if your Blue Nile credit card account is not paid off in full. When that happens, the interest will be applied retroactively, at a rate that will make you cry in agony…

no interest terms and conditions

The takeaway? This is a risky proposition unless you are 100% confident in your ability to pay off credit card before the 6 or 12 months is up. If not, you’ll be hit with the finance charges retroactively. The only way to avoid that is to do a 0% balance transfer before your promotion is up, so it gets paid off in time at that rate.

Option 3: Equal Payments

With this plan, you agree to pay back over 24, 36, or 48 month term at a 9.99% APR.

Blue Nile financing offer #3

9.99% is certainly more reasonable, but keep in mind that an already expensive diamond engagement ring will end up costing you a lot more when you finance it over such a long period of time.

And be warned because if you exceed the specified time frame, you will start paying at the higher 26.99%. Thankfully that higher rate won’t be applied retroactively, like what option #2 does.

How to save money AND lower your payments?

0% credit cards from major banks don’t use this “deferred financing” gimmick. With those, you end up getting 0% interest during the promotional time frame no matter what (regardless of whether or not you pay it off before then).

This is why the Blue Nile financing should only be a last resort. If your credit score is good enough, get a bank-issued card instead that gives true 0%. If you’re currently paying 9.99% or 26.99%, your payments will be substantially lower under a 0% plan.

Even though they say it requires “excellent” credit, I’ve heard from many who have just average credit getting approved for this sponsored card below. My recommendation would be giving the application a shot. If you are approved, move the balance from your Blue Nile credit card over to this card’s long 0% offer (which to reiterate, will give you true 0% interest).

This review was written or last updated June 2013

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.

This is standard for every credit card you get at a big box store that offers 0% financing. They will back charge you the interest from the original purchase date if you do not pay off the full balance within the promotional period. I have made similar transactions like this at Home Depot, Sears, Furniture stores (financing through Wells Fargo) and they all have this condition. I always pay off the full balance a month before it is due (sometimes much earlier) and have never incurred an interest charge. I’ve used the 12 month 0% financing twice through blue nile CC and have not incurred an interest charge. Let’s be adults now, you should only use credit if you are responsible and can abide by the terms.

Horrible customer service representative! Rude and unprofessional. I truly regret of opening an account with blue nile credit card, they treated you as a criminal. Such a bad experience, never again.

Legal action needs to taken to stop this from continuing.

Absolute scam! No Autopay, pay by phone is a fee! I tried to login on my due date to pay and was unable to. So tried again the next day! It worked! I thought Great! So I paid my bill. 2 days later I figured I’d pay ahead so I don’t have that problem again. Guess what? That said that payment went toward the prior month and charged me another “late” fee. So I got a late fee for paying a day late, and another late fee for paying too early. They intentionally do not offer auto pay so they can absolutely screw people. I have the cash so I’m gonna pay it off so these thieves do not get another done from me. May there shady business practices burn in hell with them.

Huge Scam , they charge ” FINANCE CHARGE Charge $132.23″ on a $40 minimum Payment…

Predatory creditors at their finest – seems they learned nothing from the bailouts … then again, no one actually was punished.

They don’t have auto pay, and one day late, you will be charged with a huge interest on the account. It is more like a scam

Agreed. If you can’t pay it off in the term of time without interest… you can’t afford it and don’t buy it. Be responsible and know your own budget. Don’t buy things you can’t afford.


This is standard for ANY credit offer that states “NO INTEREST IF PAID IN FULL BY” Nothing wrong with this. Like anything else just be responsible if you choose to finance. I did the 12 month option on an engagement ring after we bought a house and renovated the kitchen. Didn’t take 12 months to pay, but certainly helped to split it over 4 or 5 months.