Goodyear Credit Card Review
Like most “in-store” credit cards, Goodyear® credit cards are designed to keep people buying Goodyear products and services. Also like most in-store credit cards, the Goodyear® credit card carries a whopping high interest rate – 26.99 percent even for qualified credit applicants. Why would anyone choose to pay such high interest rates when regular credit cards are charging at least half that amount?
There are circumstances where it might pay to take out a Goodyear® credit card, but they are very rare. Here are some highlights of what to expect if you open a Goodyear® credit card account.
Benefits of a Goodyear® Credit Card
With almost a 27 percent APR, interest rates are not the driving factor in opening a Goodyear® credit card account. Instead, customers would open such accounts because of bonuses and savings available if you use only the Goodyear® credit card.
For example, a recent promotion promised up to $60 off your tire purchase if you opened a Goodyear® credit card account. These point-of-sale promotions are quite common for in-store credit card promotions; you often see department stores offer an additional 15 to 20 percent off your purchase if you open a store credit card at the register.
Opening a card is easy; it can be done in five minutes right in the store, making it more likely the customer will take the time to open the card and use it on future purchases.
The Ugly Truth, However . . .
Unfortunately, these promotions can be misleading. For example, the fine print on the card offer tells you that you only receive $60 back if you spend $1,000 or more on your tire purchase. Unless you are outfitting an off-road monster truck or a farm combine, it is unlikely you will spend that much on a couple of new blackwalls. If you spend a more reasonable $250, you get $20 back instead of the promised $60. In addition, the offer may not make it clear that this is not a point-of-sale reduction; in this case, it is a mail-in rebate that you then have to take time to send in. Many rebate offers are notorious for taking weeks to arrive, and many people simply forget about sending in the paperwork. This is quite a hassle for a $20 savings on a card that will charge you 27 percent on your purchases.
If you have a large tire purchase to make and you are going to pay off the card immediately, it might make sense to take advantage of the rebate offer by opening a card. However, you can probably save more by simply using your cash back credit card for this purchase.
What If I Cannot Qualify for Another Credit Card?
Another reason to open in-store credit card accounts is to build or rebuild credit. Most store credit cards, including the Goodyear® credit card, will allow you to open an account with average or even poor credit. Your credit limit will probably be limited, but if you pay your account regularly every month and pay it off in a timely manner, you will see credit limit increases quickly.
However, there are other credit cards out there for people with bad credit, and these usually have lower rates than in-store credit cards. It would be wise before opening an in-store account to review the credit cards specifically designed for people with no credit or poor credit to see if you could qualify for one of these cards. By paying careful attention to your finances and paying your card off promptly, you will find that other credit card companies will be more willing to do business with you.
What If I Find a “No Interest” Deal?
Goodyear® credit cards and other in-store cards occasionally offer “no-interest for 90 days” or some other time period. These are great deals when you can get them, and might be a good reason to open an in-store credit card. However, be very careful to read the fine print on these offers.
Most in-store credit cards use a revolving charge method. If you do not pay your balance in full during the “no-interest” period, the card can begin charging you interest on the entire amount of your purchase retroactively. Sears® is one of the few companies with a true “no-interest” policy; you pay interest only on the balance you carry at the end of the grace period. Most in-store cards, however, use the retroactive formula, so if you not pay your balance in full in the specified time period you could end up paying far more for your tires than if you used a regular credit card.
While retail store credit cards certainly seem attractive to customers who pay in full they often are some of the worst credit cards to get (especially for people with good credit). The Goodyear credit card is really no different. In fact, it’s probably worse since it’s not like you will be buying tires every week. The initial offer is quite likely the only really benefit this card has.