Warning: The Gap credit card may seem attractive since Gap is one of the biggest clothing retailers, but you first need to see this credit card review.

Originating out of San Francisco in 1969, Gap has grown into one of the largest apparel retailers, with annual revenue reportedly exceeding $14 billion a year. Primarily found in malls, they now have over 3,400 stores across the globe.

Controversies
In addition to the controversies surround the Gap credit card, there have been a number surrounding the company itself. For example, recently BBC exposed alleged child labor at one of their factories in India. Here in the US, many are disgusted with Gap’s recent anti-Christian holiday commercial, which takes political correctness overboard with a voiceover that says you can celebrate a Wiccan holiday (winter solstice) instead of Christmas.

But however you feel or wherever you live, one thing is for sure… The Gap Inc. is hurting a lot of people lately in all kinds of ways. But enough off-topic chat, let’s get back to that credit card…

The Gap Credit Card
There are actually two different cards – the regular one can only be used at their stores, the Gap Visa card can be used anywhere Visa is accepting (including Gap). Unfortunately when you apply for the Gap credit card, you can’t specify which one you want. The will first consider you for the Visa version, if you don’t qualify they will consider you for the regular version. If you have bad credit you might not qualify for either.

Interest Rates: It looks like the APR is extremely high on both versions of the card. At the time of this review it is 18.24% to 21.24% on the Visa and 23.99% for the regular card. Most would consider these rates to be excessive, to say the least. Therefore, neither would be a smart choice if you ever carry a balance (and carrying a balance would

Signup Promo: As almost every clothing retailer and department store does, the Gap credit card usually includes the typical 10 or 15% off your first purchase. While this may sound like a good deal, it’s important to remember that everyone offers this, so that’s not a special reason to signup. It’s not worth falling for the bait upfront, only to be stuck with a crappy card in the long run. Unless you plan on spending some crazy amount (like a thousand dollars) on your first purchase, then this “bait” is not worth biting.

Rewards: Both cards apparently offer the same rewards structure. They give 5 points per dollar spent at Gap stores (and affiliates). The Gap Visa card also gives 1 point per dollar spent elsewhere. For every 1000 points accumulated they will give a $10 coupon to use at their stores. Upon reading the very fine print, I found that there are a slew of things the coupon can not be used for, like Gap (Product) Red, JunkFood, Havaianas, CharmIt, baby Gap home, and numerous other exclusions.

When you calculate it out, the point conversion equals out to be 1% on regular purchases and 5% at Gap Stores. The 1% isn’t impressive since pretty much every credit card out there gives you that. The 5% is actually good, but the drawback is you only earn that at Gap and not any of your other spending. Considering that Gap clothes aren’t all that expensive, the amount anyone spends there in a given year probably isn’t enough to earn a decent amount.

Verdict
Neither Gap credit card is a good idea if you carry a balance. The rewards on purchases at Gap are good, but unfortunately the car isn’t beneficial for your other spending. There’s no point in hassling with another credit card like this since it’s really only beneficial at once place.

A Better Solution (sponsored)
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