Rooms to go credit card, are they a great idea? Many people will be quick to tell you that no, rooms to go credit cards are not a good idea because they can cost you hundreds of dollars if used incorrectly. Yet, others will tell you that these cards are the best way to go for those who have a tight budget or anyone who is looking for a credit card with little or no credit history. It seems like there are both sides of the argument when it comes to rooms to go credit card.
In many ways, the Rooms to Go Cards work much like an ordinary credit card, allowing consumers to finance their furniture purchases with a 0% introductory interest rate (APR). But after the introductory period ends, the APR ramps up to a higher rate and the credit limit begins to diminish. This is where the problem lies. If you want to use the card to make large, expensive furniture purchases, you may find that you are subject to a large finance charge on that purchase each month, even after your credit limit has been depleted. If you don't pay off the new balance within the introductory period, you may end up owing quite a bit more in finance charges than you had before you entered the program.
One of the ways to avoid this situation is to pay off the entire purchase after the introductory period has ended. Some credit card companies provide customers with a grace period following the introduction of the credit card. During this period, customers are not charged anything on the card. They are still free to make all of their regular purchases, but if they need to make any major purchases during this time period, they are responsible for paying the full amount of the purchase. By using the card to make large purchases during this period, you can help to ensure that you will be in a good position to receive your full credit score increase.
Another way to avoid paying the full amount of the credit card balance is to “defer” purchases. A deferred purchase is one in which the customer agrees to a purchase over an extended period of time, usually 180 days from the date of purchase. Credit card companies call these “deferred purchases” and they offer them at a discount if you agree to make them. For example, a customer might agree to make two stays at the same hotel during the period. If she were to book a hotel room two months later, she would almost always be able to get the same savings.
Most of the credit cards that have special financing periods have a cap on the number of such stays that can be made in a year. If you agree to make five stays during a year, you cannot take advantage of special financing period. Instead, you will be limited to three nights in a month. Some hotels actually charge a fee for using the special financing period, so you should check with your credit card company about any charges that apply to this feature. You might also find that you can use your points toward free upgrades at the hotel, or other benefits.
Finally, make sure you understand how to use the points you earn by making purchases at restaurants, gasoline stations, movie theaters, department stores, drugstores and many more places. Many credit cards have a reward feature that offers free . . . . . . or low-cost gasoline for a specified period of time, free movie passes or frequent flyer miles. These rewards are only available if you use them in conjunction with other airline or hotel discounts or if you use them to pay for your meals. Frequent fliers can receive a percentage of their points in this manner, while those who pay their bill in cash can receive higher points with interest-free financing.