Menards stores are perhaps the best one-stop-shop for home improvement in Wisconsin and the entire Midwest for that matter. Unfortunately their credit card – the Menards Big Card – isn’t such a good deal. Here’s why…
Sneaky Financing Offers
Some folks don’t realize that the promotional financing offers on the Menards card are structured as deferred interest. This means that if you don’t pay off the entire amount before the promo period is up, you will be slapped with back interest on the full balance going all the way to the date of purchase… and that’s a lot of money if that APR is 24.99%.
So let’s say your financing offer with the Menards Big card was 0% if paid in full within 6 months. Well if you don’t pay it in full, you are left paying a small fortune in back interest! So if you’re carrying a balance, transfer it to a different card like this that does NOT use deferred interest:
Extremely High APR
The Menards credit card has one of the highest APRs around. At the time of writing, the interest rate on the Menards card was 24.99% (that’s 21.74% plus the prime rate, which is 3.25%). Even for private label credit cards, this is still extremely high, and you almost can certainly do better with just about any run-of-the-mill normal credit card.
Small Signup Bonus
At the time of writing their credit card application listed a $10 in-store certificate after charging a $100 purchase on a new Menards Big card. Sure, something’s better than nothing, but there are many other credit cards on the market that give you a signup bonus worth 10x as much – $100!
Not The Best Rewards
Many store credit cards on the market give up to 5% in rewards when shopping at their stores. The Menards card only gives 2% rebate on an annual basis. With such low rewards, it’s not a very convincing selling point to get you to apply for a Menards credit card.
Although it’s a great home improvement store, the Menards Big Card leaves a lot to be desired. The only people I would recommend this card to are those with bad credit, because comments/reviews online have said they seem to be lenient to applicants with poor credit.
Whatever you do, just make sure you never carry a balance on Menards card because their interest rates are so high you would be shooting yourself in the foot.
How To Save 5% At All Home Improvement Stores?
Did you know there’s a free credit card that gives a 5% rebate in rotating categories, including home improvement stores? Find out how to save 5% for free by reading my Discover it review (a new version for 2013).
How To Finance a Big Purchase & Save The Most Money?
If the primary reason you were interested in the Menards Big Card was for its financing offers, then you would be better offer using a normal bank-issued credit card that gives a promotional 0% rate on purchases. Why? Because normal credit cards don’t use deferred interest. So if it takes you longer than the 0% period to pay it off in full, you won’t have to worry about being charged back interest. For the best current offers, check out our 0% credit cards for purchases and transfers
Last updated November 13, 2013