Rooms To Go Credit Card Requirements/Reviews

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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pseymore
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Rooms To Go Credit Card Requirements/Reviews

Postby pseymore » Wed Aug 03, 2011 8:16 pm

(Updated 2013) This horror story about the Rooms to Go credit card has me reconsidering my choice. My girlfriend and I are in dire need of some new furniture. We recently moved in together and the place is empty except for our bed. The goal is good furniture that is also cheap and that is what Rooms to Go offers. I compared other stores and no one comes close to offering sets like this for the under $1000.

But we have a BIG PROBLEM and that is we are tight on funds to pay. We both work and have decent incomes but do not have the cash on hand to buy. Paying over time should not be a problem and that is why we want to pay with a credit card.

I was searching for the Rooms to Go card application and came across a nasty review/horror story on another website that claimed GE Money Bank gave approval for the persons account but the store wanted a 20% downpayment on the purchase. Then there are more reviews underneath that claim the opposite and never being asked for a downpayment and no problems with the credit card.

I guess my first question is who do I believe? I know store cards can be sketchy sometimes and I don't want to apply for this card if it will lead to surprises. Should I ignore this complaint I read since the other reviews are positive?

Second question is about the credit score/requirements for this card? We have average credit but have tried applying for those better cards you see advertised on TV but have gotten denied. Will we encounter the same with Rooms to Go?

This is the financing deal. https://secure.roomstogo.com/credit/CreditDetails/index.cfm Thoughts?


sticf
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Postby sticf » Thu Aug 04, 2011 8:02 am

I have not had any business with Room to Go. However, I have done business with GEMB. I am not their biggest fan (so take everything with a grain of salt).

Their promotion for no interest seems good. You basically get ~15 months interest free financing.* If you are late 60 Days the interest jacks up to ~30%. That could be a killer, depending on your financial situation.
I did notice a maintenance fee that is not on the promotional material. It is $0.99 a month, every month that you carry a balance greater than $0. So it is not entirely free financing.

As to the down payment for purchase:
"Rooms To Go requires No Minimum Purchase and No Down Payment except amount equal to sales tax and delivery."

Will you be accepted? I have no way of knowing. From your post I am assuming that you are looking to build your credit profile. So starting with store credit via GEMB is not a terrible idea. They want you to have a card so you will spend money with them. Looking at their interest rates and fees I would say they are willing to take risk with people that other institutions would turn down. I would look around for some other financing options before taking the plunge. In my opinion, if you can score a lower limit major credit card with more reasonable terms you would be better off in the long run. You would have to buy your furniture more slowly over time. However, you might be surprised how far some lawn chairs and second hand tables will last while acquiring things at a slower pace.

*From their Agreement:
"Monthly payments equal to 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

pseymore
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Postby pseymore » Sat Aug 06, 2011 8:04 pm

I really, REALLY appreciate your response! Thank you very much! The $0.99 monthly fee I didn't catch and what you pointed out about having to pay the sales tax + delivery out of pocket must be what that negative review I read was griping about.

but no interest will be assessed if all minimum monthly payments on account, including debt cancellation, paid when due


Does this mean the Rooms To Go card doesn't use deferred interest? That is what it kind of sounds like to me but I don't know a great deal about these things.

What you said about going with a real bank I have thought about it but in this economy its as if the credit card issuers aren't approving anyone and have really high credit requirements. or at least that is the impression I have gotten.


sticf
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Postby sticf » Sun Aug 07, 2011 6:53 am

pseymore wrote:Does this mean the Rooms To Go card doesn't use deferred interest? That is what it kind of sounds like to me but I don't know a great deal about these things.

What you said about going with a real bank I have thought about it but in this economy its as if the credit card issuers aren't approving anyone and have really high credit requirements. or at least that is the impression I have gotten.


I will leave it up to others with more experence reading credit agreements to answer the question of defered interest. I really only looked at the agreement for a few minuets.

You know your situation better than I. Yes creditors are more picky about handing out credit than in the past. However, they are not all looking for perfect credit scores.

DarkLabel
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Postby DarkLabel » Mon Aug 15, 2011 9:46 pm

If you don't pay in full by the due date of no interest (as in pay in full by Jan 2013), you WILL be charged interest retroactively since the day you applied at the APR you were given. Even if you you carry a balance of 1$ from January to February, you will be hit with the interest charges since day one. Thats pretty much the biggest catch about these "no interest" specials. So be sure to budget it that you can pay it off well before January 2013 in full in order to avoid any major headaches.

CCG
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Postby CCG » Tue Aug 16, 2011 11:06 pm

As mentioned above, the main drawback with store cards is the deferred interest trick. If you have at least average/good credit and can get approved for a major credit card instead, by all means for it so you don't get stuck with deferred interest. You can view CreditCardForum's sponsored offers here:

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Discover is one of the hardest to qualify for and the Chase Freedom also has stringent requirements. So if you have bad or fair credit, what I would recommend is using the following tool to see if you are per-qualified for anything.
Good luck,
-CCG



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