Review: Newegg Credit Card

newegg-credit-cardComputer and electronics retailer Newegg, in partnership with Synchrony Bank, offers a credit card that lets you finance your Newegg purchases with no interest — but read the fine print, or it could be a terrible decision! Our full overview / review of the Newegg credit card is below:

The first thing to understand about the Newegg credit card is that it can only be used at Newegg, nowhere else. This limited acceptance is a strike against it — opening a new line of credit can hurt your credit score, especially if you have shaky credit to begin with. So, if you’re going to get a new credit card, you usually want one that is accepted beyond a single retailer.

But of course you’re not getting this card just to shop at Newegg — you’re getting it for the 0% financing offers, which are admittedly attractive. These include:

  • No interest for 6 months on purchases of $249 up to $498, provided you pay the full balance within those 6 months
  • No interest for 12 months on purchases of $499 or more, provided you pay the full balance within 12 months

Yes, no interest is attractive. But be careful! Notice that we said you pay no interest if you pay off the complete balance within the 6-month or 12-month timeframe. But what if you don’t? What if you pay off almost all of it but fail to completely get it paid off? Well, that’s the gotcha: if you don’t pay off the full balance in time, you will then be charged ALL of the interest that would’ve accrued since the day you made the purchase — as if the no interest offer had never existed!

And what interest rate would you pay if you screw up? 29.99%!!!

Yes, almost 30% interest! A bit different than 0%, huh? So, do not take the Newegg credit card for the 0% offer unless you are absolutely sure you can pay it off in time.

There is no reason to apply for the Newegg credit card unless you are ready to make a big purchases, but you can find more information and the card’s online application here.