Q: Wow tires are not cheap. I need to replace all four on my Mercury Sable and the total is over $800 and that is for some off-name, not the brand names like Goodyear or Bridgestone. Since I don’t have the cash, should I go with Expert Tire’s financing to spread my payments out over time?
A: Indeed tires are totally overpriced nowadays! But be careful how you pay for them because if you choose the wrong method, they may end up costing you even more!
Case in point: the credit card from Expert Tire. Sure, the account is easy to qualify for, but it uses a slimy deferred interest trick:
Ever wonder what “no interest if paid in full” means in plain English? Well, in order to pay no interest, you need to pay the full amount off within the specific time (in this example it’s 6 months).
If it’s not paid off entirely in the 6 months, then on the following month the interest charges will be retroactively applied, going back to the day of the purchase for the full amount.
Their application says it has a 22.80% APR. Guess how much 6 months of interest on $800 would cost you? Almost $100 extra! ($96.57 to be exact).
This is why it should be your last resort! I understand that your credit score might not be good enough to get approved for a normal card and if that’s the case, you have no choice but to go with the Expert Tire card. But please, be careful and pay it off before the 6 months is up!
Anyone who already has their card or is thinking about getting it, I would strongly encourage you to see if you can get approved for a regular credit card instead. If you are, then you can transfer your balance from Expert Tire over to the new card and save on interest if you qualify for a better rate elsewhere.
Your next step should be to try out a card finder. Click here and fill out your info. It does a soft credit check and then tells you which cards (if any) you pre-qualify for. It’s worth a shot! I wish you the best of luck with your car repairs.
This post was written or last updated June 5, 2013