Steinhafels Credit Card: Painful Payments At 29.99% APR

Being that I have a sister who lives in Wisconsin (and who recently bought a new house that needed furniture) I am familiar with Steinhafels. But would I recommend their credit card to her? Well that depends…

0% interest vs. deferred interest

First of all you need to know that none of Steinhafels’ financing offers give you true 0% interest. What they give you is 0% deferred interest, which operates differently.

How it works is this: If you pay off the purchase during the allotted number of months, then you won’t see interest charges. If you don’t, then you get it charged retroactively, going back all the way to day one on the full price paid. Unfortunately, most other furniture stores do the same thing.

What this means: You should only use the Steinhafels credit card if you are 100% confident in your ability to pay it off in time. If you can’t do that and you already have an account, make sure you move the balance to another card before the retroactive interest gets tacked on.

Even if you are positive that you will make all the payments within the allotted time, the financing offers aren’t even that great. When I last checked during the summer of 2013 the credit card from Steinhafels was offering 0% deferred interest on purchases of $999+ until January 2015. That may sound like a long way away, but it was only 17 months away. You might be able to get longer than that thru a major credit card instead, and unlike Steinhafels, it won’t have the deferred interest trap.

However if you’re buying a mattress, like a really expensive mattress, then you may want to go for Steinhafels card. Yes, it still uses deferred interest, but at least the time is longer at 48 months if you spend $1,999+ on mattress(es). That is a long time but be careful, because if you mess it up the back interest will be at a rate of 29.99% (same as the furniture card).

Steinhafels APR

This post was written or last updated July 24, 2013

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