He went to Jared’s… and paid too much interest.
The good news? The Jared Jewelers credit card has very lax requirements for approval. I have seen reviews/feedback from customers who have a credit score as low as 600 and still gotten approved with a credit limit as high as three or four thousand dollars.
The bad news? The lending terms are absolutely terrible. Of course we all know you can’t expect much from store credit cards, but what Jared offers is even worse than what you will see from many other competing jewelry stores.
Offer #1: The “Diamond Plan” for 12 months
- Available on purchases of $1,000 or more.
- 20% down payment is required for the purchase.
- There is deferred interest for 12 months.
- If it’s not paid off within that 12 month window or if you make a late payment, then you will pay interest retroactively going back to the day of purchase. Your APR depends on the state you opened your account:
Offer #2: The “Platinum Plan” for 18 months
- Available on purchases of $5,000 or more.
- 20% down payment required.
- There is no interest for the first 12 months (assuming all minimum monthly payments have been made and on time, if not, there is retroactive interest). For months 13 thru 18 the APR is 9.9%. After that the standard APR applies.
- The minimum payment is 1/18th of the amount borrowed, multiplied by 1.03. For example, if you financed $5,000 then the minimum payment would be at least $286.11 per month.
- The normal APR varies by state (same as shown above).
You’re not dealing with a bank
What most retailers do is outsource their credit cards to a third-party like GE Capital or Comenity. What’s surprising about the Jared credit card is that it’s handled in-house. This is one good thing about it; you’re dealing with them directly for customer service.
When you should and shouldn’t use it
Have you already tried to apply for a bank card that give 0% on purchases? If so and you were denied, then the credit card from Jared may be your only option for financing. If you can pay it off before deferred interest kicks in, it can be a good account for helping to rebuild your credit history.
If already have the Jared jewelry card and you (a) won’t be able to pay it off before the retroactive interest, or (b) are paying the normal interest rate, then try applying for a bank card that you can transfer your balance to.
This review was written or last updated July 26, 2013