Q: I feel like I’ve just been scammed. At the end of last year I bought 4 new tires which came in at $935, including alignment. The Ken Towery sales guy talked me into their credit card because he said it gave 0% interest for 6 months. But then in July of 2013 my account got hit with retroactive interest payments. Did I just get duped?!
A: Well I guess that depends on your definition of duped.
Like many tire shops and auto repair centers, Ken Towery offers a credit card that gives no interest – but with a big catch – and that is you are required to pay off the debt within the 0% window.
You mentioned your purchase was $935. Even if you paid off $900 of that within the first 6 months, because you had a remaining $35 debt go past the 6 months, they slap you with the interest retroactively. And it’s brutal, because the retroactive interest is calculated on the full $935, not just the $35.
Your best course of action moving forward?
Since you weren’t able to pay off your Ken Towery credit card within the 6 month window, now you’re paying a 22.80% APR. That hurts!
Your best bet now is to do a balance transfer and move the debt to another card that comes with a 0% intro APR promotion.
The same advice can be said if you’re on month 3, 4 or 5 and don’t expect to be able to pay it off before the 6 months is up. If that’s the case, make sure you transfer the balance ASAP to avoid the retroactive finance charges.
Unlike Ken Towery, normal Visa/MasterCards you get through banks don’t charge retroactive interest on 0% offers. So even if you don’t pay it off during the 0% window, you won’t have to worry about that.
This article was written or last updated July 17, 2013