I can’t believe how expensive tires are nowadays! Just a few weeks ago I had to replace the rear tires on my car and the total was over $600 for just two tires! I actually didn’t buy them at Tires Plus because I found a good coupon to use at another place. But I did check the Tires Plus price beforehand and I also looked into the Tires Plus credit card. There are some important things about it you need to know…
What’s the interest rate?
The interest rate on the Tires Plus card was 22.8% as of Dec 2012. This is a very high rate, but in all fairness, all credit cards from tire stores have high APRs so this is nothing unusual.
Are you sure you understand the promo offer?
What I am about to tell you is extremely important. I can’t even begin to tell you the number of people that visit my credit card blog to complain about deferred interest deals (like what the Tires Plus credit card offers). This is what you have to understand…
These types of no interest offers work quite a bit different than the 0% offers you see on major credit cards. When an offer says “no interest if paid in full within 6 months” that means it’s deferred interest.
- With deferred interest promotions, the interest starts accruing from the very first day of your purchase.
- If you pay off the full amount before the promotional period is up, the “deferred interest” will not be charged to your Tires Plus account.
- If you don’t pay off the full amount before the promo period, then your credit card account will be charged interest going back to the date of purchase on the entire purchase price.
So in a nutshell, if you are 100% absolutely positive you will be able to pay off the purchase before the offer ends, then you will be okay. But if you’re not, credit card offers like these are a bad idea – because even if you carry just a few dollars past the time of the offer, you are going to be charged interest on the entire price of your purchase from day one!
When I looked this was the deferred interest promo that the Tires Plus card was offering:
- $249 minimum purchase required
- No interest if paid in full within 6 months
Are these offers a bad idea?
For those with poor credit, the Tires Plus card isn’t necessarily an awful idea. Why? Because it’s said to have less strict approval requirements. If your credit score is too low to get a normal credit card and you really need new tires, then the Tires Plus card would be a good idea.
However if you don’t have bad credit, then I see absolutely no reason to apply for a Tires Plus credit card. Why? Because there are plenty of major credit cards that offer 0% on purchases and they are NOT deferred interest, so you won’t get charged for taking longer to pay it offer. Not to mention, it’s of very limited use since you can only use it at Tires Plus stores… why hassle with a card that you can’t use everywhere?