Don’t get taken for a ride twice with the Spiegel & Newport News cards.
Back in the 90’s, the Newport News catalogs made their way to millions of mailboxes. Fast forward to 2013 and the brand is practically dead!
When you go to their website (www.newport-news.com) you will notice it re-directs to Spiegel.com. They’re both the same company and both use the same website.
So that brings us to the question… why is there still a Newport News credit card AND another one for Spiegel?! Since they use the same website, does it make sense to still offer applications for both credit card brands?
2 different cards = 2 ways for you to pay 2 much
Bewildered by the fact that they continue to offer 2 different cards for 2013, I called up customer service and asked what the deal was.
The rep said that you can have 2 accounts, 1 for each brand.
That makes absolutely zero sense, since they both operate under the exact same website. Then it occurred to me they probably do this so you spend more money.
The reason your payments are so high?
Take a gander at the Newport News card application and you will see what a rotten deal it is…
- A very steep 24.99% interest rate
- You don’t earn rewards on purchases
- The card can only be used for their website/catalog
Meanwhile, the one branded under the Spiegel label is equally disastrous. So the only logical reason I can think of as to why they continue to peddle 2 different credit cards is so people buy more (and pay more interest charges).
Think about it. At first glance, which appears worse:
Scenario A: Getting a $700 credit card bill in your mailbox today
Scenario B: Getting a $300 credit card bill in your mailbox today, followed by a $400 bill in two weeks.
Obviously both are for the same amount, but psychologically having debt spread across multiple accounts (and arriving in your mailbox at different times) is less devastating than seeing a single account with your full debt. This is why having multiple credit cards can be dangerous if you’re someone who carries a balance.
My guess is that the company knows this, and it’s why they continue to offer two different credit cards for the same website.
Don’t fall for this trap, look elsewhere
Even if you only stick with the Newport News card, the payments are going to cost you a pretty penny if you don’t pay in full.
And if you do pay in full, then why on earth are you using a card that has no rewards program?! Even if you have mediocre credit, you might still be able to qualify for an entry-level MasterCard or Visa with rewards.
Written or last updated Jan 2013