Thread: Will I get ripped off with a Sam Ash credit card?

Here's the deal. I'm buying a new guitar and amp and it is going to run me like about $1550 if I buy it right now during the sale. I can get a Sam Ash credit card to pay for it, was told approval was easy. There are some different offers and stuff I can use with it and this is what I was thinking of going with.

12 Months Equal Fixed Minimum Monthly Payments Required.
Penalty APR may apply if you make a late payment.

My payments would be spaced out equally to about $130 a month and if I pay them all and on time then there is no interest. I should be able to handle this but my job is kind of iffy and if I get fired then after using up savings the $130 could be dicey. Should I risk it and go for it or try and apply for a bank card 0% offer even though my credit sucks?

If this is any help to get an answer

*12 monthly payments equal to the promo purchase divided equally by number of months in promo period are required until expiration but no interest will be assessed if all minimum monthly payments on account, including debt cancellation, paid when due. If account goes 60 days past due, promo may be terminated early and standard account terms will apply.

Purchase APR 29.99%; Penalty APR 29.99%. Minimum Interest $2. Subject to credit approval.

A bank card is generally better to see on your credit report, but it sounds like there might be additional savings with the Sam Ash card. Your big hangup sounds like your concern about a lack of income sometime in the next 12 months. Even with a 0% bank card, if you miss payments, your rate shoots up, probably to the same amounts. I would say tread carefully.

The Sam Ash credit card is issued by HSBC. In the credit card world they are a sub-par creditor. Like big37guy said, bank cards are better then store cards! You are better off applying for a good credit card like, Chase,Citi, Discover, Amex and etc.

Try to stay away from creditors like HSBC, Captial One and GE Money if possiable.

But if Sam Ash is your only option, I would try and put some money down.

As with deferred interest offers, if you can definitely pay off every penny before the promotion is up you will be fine. However if there is any chance that you may not be able to pay off the full amount before the promotional period, than the Sam Ash credit card may be a risky proposition given the deferred interest which would be charged at a hefty interest rate.

If you have okay credit and would like to consider a normal credit card that does NOT use deferred interest, I would recommend the sponsored Citi offer CreditCardForum is currently running: Top 0% Credit Cards For Purchases and/or Transfers. There are good offers from Discover and Chase on there too but those tend to be harder to qualify for than Citi.

Whatever route you choose to go, good luck!

-CCG