Review: Big Lots Credit Card

big-lots-credit-card-2016Big Lots, in partnership with Comenity Capital Bank, offers a credit card that allows you to finance large purchases at a 0% interest rate. But be careful! Our overview / review of the Big Lots credit card is below:

The first thing to understand about the Big Lots credit card is that it is only accepted at Big Lots, nowhere else. Here at Credit Card Catalog we generally frown upon credit cards with such limited acceptance, because each new credit line you open knocks your credit score down a few points, which can be especially bad if your credit history is not so great. If you’re going to open a new card that is only good at one retailer, there should be a very compelling reason to do so.

Does the Big Lots credit card offer that compelling reason? Maybe, but it’s also fraught with danger. Here’s the deal: When you make a large purchase at Big Lots, you can finance it with the Big Lots credit card and pay no interest for a certain period. Specifically, you can get:

  • 0% interest on purchases over $750 for 12 months
  • 0% interest on purchases over $250 for 6 months

That sounds nice, but you must understand that every penny of your purchase must be paid off within that 6-month or 12-month period. If it’s not completely paid off, you will suddenly be charged ALL of the interest that would’ve accrued since the day you made the purchase — as if the 0% offer had never existed!

And the interest rate you’d pay? 29.99%!!!!

That is an outrageously high rate, about as high as you will find on almost any credit card on the market. So, take the 0% offer if you know you can pay the purchase off in time, otherwise you could get trapped.

Overall, the Big Lots credit card is a one-trick pony: Other than the no-interest offer on large purchases, it offers no other perks and has that ridiculous 29.99% interest rate that should dissuade you from ever using it otherwise.

There is no reason to apply for the Big Lots credit card until you are ready to make a big purchase at one of their stores, but you can find more information about the card here.