Holiday store credit card deals really worth it?

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FORT MYERS, Fla.- This has probably happened to you while you’re shopping, you’re promised big savings on the spot if you sign up for a store credit card.

It turns out that some of those deals may actually hurt you in the long run.

A new report from just ranked some of your favorite stores and reveals which ones may be hiding the real cost from you.

“If you have $100 charge and they are offering 20 percent you can save $20 right there,” said shopper Jeff Passantino.

WINK News uncovered that those deals may sound hot at the time, but could end up costing you in the long run.

“If  you don’t pay them off you are going to be paying that interest for a long time,: said shopper Anita Walker. just released their naughty and nice list on stores that offer deferred interest payment credit cards. Those are the “zero percent interest for 12 months” types of promotions you see all time time.

According to Card Hub, Target, Kohl’s and Costco don’t offer deferred interest deals.

On the naughty list is JC Penney, Home Depot and Best Buy because they do offer the deferred interest credit card deals.
Card Hub also says Walmart and Home Depot’s websites are pretty clear about the terms of the credit cards, but says Amazon and RadioShack’s websites are less than up front on the real potential costs.

“The potential is there to save a lot of money,” said Dr. John Meyer with Florida Southwestern State College.

Meyer says in order to really save with the credit cards, you must play by the store’s rules.
Pay it off within the promotions time frame and don’t miss a payment because if you do, Card Hub says you could possibly pay 27 times more interest.

“Not only do you pay the 18 percent or whatever the interest rate is, but there is the potential for a penalty, or if you are late, there is a potential for a penalty,” said Meyer.

According to

-29 percent of the retailers offering deferred interest had complete and easily accessible information about the terms of their plans on their websites.

-69 percent of major retailers offer a financing option. The best deals come from retailers that do not use deferred interest, which include: Target, Nordstrom, and Gap. The worst deals come from retailers that not only offer deferred interest, but also are not transparent about their policies – a list that includes the likes of Pottery Barn,, Lowe’s, and Macy’s.

-Companies such as Apple and Amazon, which have built their brands around providing consumer-friendly products, offer deferred interest – a decidedly misleading and potentially harmful financing option.

For the full report CLICK HERE.

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