Restoration Hardware Credit Card: Not Always a Smart Choice

With Restoration Hardware’s hefty prices, it’s no wonder they offer a credit card! But is it really the smartest choice?

Decking out your décor with Restoration Hardware will require some major moolah, no doubt.

Example: Dining Room Table w/ Chairs
Even the “special” sale price for this set is hard to fathom…

  • 1 Trestle Salvaged Wood Fixed Dining Table (large) @ $5,395
  • 8 Nailhead Upholstered Chairs @ $399 each

Total? $8,587 and that’s not including sales tax and delivery!

Conclusion? If you’re not paying cash, you better make sure you are financing large furniture purchases like this at the absolute best possible interest rates, that’s for sure.

Their 2013 credit card deals for financing…

The website listed a few different financing offers when using the Restoration Hardware credit card. Obviously these can change at any time, but this will give you a gist of what to expect at least…

  • Deferred Interest: If you spend $1,000+ (easy to do!) then this plan offered 0% for 12 months. But mind you, this is deferred 0% and works like this:

“If the balance is not paid in full in 12 months from date of purchase, interest will be imposed from the date of purchase at an APR of 24.99%.”

Translation: You better pay it off beforehand!

  • Equal Payments: With this plan you have your payments equally spread out over 12 months (for $2,000+ purchase) or 24 months (for $3,000+ purchase) at rate of 9.99%. If it’s paid off on time, then the rate paid would have been 9.99% annually. However if it’s not paid up before the 12 or 24 months, then the remaining balance will be accrue at a 24.99% APR.

The first type should only be used by those with extreme self discipline. Why? Because if you pay everything off in time, you won’t have a problem. But if you don’t, then the deferred interest plan will come back and bite you in a butt.

An alternative is to go with something like the Discover It card and its long 0% offer for purchases. Why? Because since it’s a major credit card, there is no deferred interest. If you go past the 0% period, you won’t have to worry about back interest.

While the financing plans on the Restoration Hardware card are not ideal, I do commend them for offering a rewards system for purchases. There is one point given per dollar spent. Since 500 points results in a $25 certificate, it equates out to a 5% rebate on purchases made with the credit card. If you are someone who always pays your full balance each month, then getting their card solely for the rewards would make sense. Given their higher prices, I’m sure it would be rather easy to accumulate a large amount of rewards.

Written or last updated for 2013

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Hi thanks for reviewing this, info is very helpful. Wish I knew these things about the card beforehand.