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  1. #1
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    Default Is the American Eagle Outfitters credit card a ripoff?

    Hey I'm 18 and lookin to get my first credit card. I was at an American Eagle store today and when she rang me up, asked if I wanted to apply. I was surprised b/c even tho Im 18 I definitely don't look it.

    Anyway I didn't apply but now wondering if I should of. The thing is the AEO credit card has like a 25% interest rate. That seems like a rip off. Does that mean if I spend $100 this month and pay my bill a month later I would have paid 1 month of interest at a 25% rate?????
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  2. #2
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    The APR they show there is short for annual percentage rate. That means you would pay an annual interest rate of 25%. So if you wanna figure out how much interest you will pay a month, 25/12=2.083%, though most banks give you like a 25 day grace period before they start charging you interest on a purchase. Also, just for the fun of it, 25/365=.0685% interest each day being charged to you, which from a balance of 100 would be .0685 cents. Yes, that interest rate is terrible, but that's usually the rate for store credit cards.
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  3. #3
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    I don't like store cards because you can only use them at a particular store. They are useless anywhere else.
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    most banks give you like a 25 day grace period before they start charging you interest on a purchase.
    Thanx for the explanation. I guess just to confirm I wont pay interest charges if I pay my credit card bill during the 25 day grace period? And sorry for being dumb but is this the same thing as the grace period that-

    "Your due date is at least 23 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month."

    that was on the American Eagle outfitters card app.

    I don't like store cards because you can only use them at a particular store.
    Agreed. Just didn't know if I could get a real credit card yet. Think I can qualify for a non-store card even tho I have no credit history?
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  5. #5
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    Quote Originally Posted by Magellan View Post
    Just didn't know if I could get a real credit card yet. Think I can qualify for a non-store card even tho I have no credit history?
    You can probably get a secured BofA card even if you can't get an unsecured student card.
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  6. #6
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    I've had good experiences with this card. I opened it last August and got the Visa version with an initial credit line of 2.6k. Then last month they gave me an automatic credit line increase to 4k! The biggest benefit to the card it is they send exclusive coupons and promos all the time.

    However, I do pay my balance in full every month though and if you don't plan on doing that I would stay away from this card. I only use mine at AE and to pay my Netflix subscription to keep the card active.
    Credit Lines
    Discover IT (June 2010, 1.5k)
    Chase Freedom (Sept 2011, 2k)
    Dell Finance (April 2012, 2k)
    Chase Amazon (May 2012, 1k)
    American Eagle (Aug 2012, 4k)
    Kohl's (Sept 2012, 600)
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    Quote Originally Posted by Magellan View Post
    "Your due date is at least 23 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month."

    that was on the American Eagle outfitters card app.



    Agreed. Just didn't know if I could get a real credit card yet. Think I can qualify for a non-store card even tho I have no credit history?
    The bold wordings just mean just like it says. Your minimum payment due date will be at the least, 23 days AFTER the billing statement ends, so if your last statement cut off date is on the 1st, then that means your next statement due date will be at the earliest on the 24th. If you let a balance report on your card and you ONLY pay the minimum and not the full balance, then you will be charged interest. Best to pay in full or at least let a small balance report to show activity.

    Best bet is to start with a secured credit card like David says. I don't think with no credit profile you will be approved for any cards right now.
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    I would start out with a secured card. Its a great way to start building your credit history, and if you play your cards right, at 18 you can lay the foundation for outstanding credit at an early age.
    AMEX Blue Cash Preferred: $23,500
    CAPONE Cash Rewards (VISA Signature): $7,500
    CHASE Freedom (VISA Signature): $20,000
    USAA Rewards (World MC): $13,500
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  9. #9
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    Build your credit with bigger lenders. Store cards are alright, but I wouldn't use them to build credit. .

    I've gotten past the need to use store cards at all. I will not give up an inquiry for some promotional discount.
    My Limits:
    NFCU NavCheck: $15,000/NFCU Platinum: $11,500/NFCU nRewards: $8,000
    Chase Freedom: $6,500/Chase Slate: $6,000/CSP: $5,000/Marriott Rewards Primier: $5,000/United MileagePlus Explorer: $5,000/Southwest Primier: $3,000
    Citi Hilton HHonors: $9,700/Citi Simplicity: $8,200/Citi Forward: $5,500
    AMEX Blue Cash Everyday: $8,000/SPG AMEX: $5,000/AMEX Everyday: $5,000/AMEX Delta Skymiles Platinum: $3,400
    Discover IT: $7,700
    Barclay's NFL Extra Points (Carolina Panthers): $5,000
    DCU Platinum: $3,000
    RTN FCU CC: $2,000
    CCCU Platinum Rewards Visa: $2,000

    Current total limit: $129,500
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  10. #10
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    I mean store cards do have their benefits esp. if you shop at that specific store a lot. The ae card you can also use at aerie and vice versa. Combine the $ off coupons you get with the credit card and the % coupons you get with their rewards card (not cc just a coupon card) that's a nice chunk of a discount. My gf has the visa version and they combine the coupons for her all the time. They also have special card member events (I guess it's shopping pre-sale before the sale starts for everyone else). So it really depends on if you like the brand.
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