JC Penney Card: Easy to Obtain, But a Mixed Blessing
Written: Nov 30 '05 (Updated Dec 01 '05)
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Pros: Easy payment schedule; Friendly customer service; Incentives
Cons: High interest; Lack of usability
The Bottom Line: This card has several pros and cons, but I like the incentive offers and lack of an annual fee enough to recommend it.
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| Bryan_Carey's Full Review: JC Penney Credit Card |
Credit cards are sometimes difficult to come by and some of them hold high standards, limiting approval to only those with credit scores in the good to excellent range (650 plus points). Other cards are given away like free samples in the grocery store, with approval often taking only a matter of minutes to go through. One example of the latter is the J.C. Penney Credit Card, the official credit card of the retail store giant.
Basics of This Credit Card:
J.C. Penney Credit Card is a store- specific card that was created primarily for usage at J.C. Penney retail stores and at the on- line J.C. Penney store. This card generally carries a lower limit than other, general use credit cards but it also carries fewer fees.
Fees and Other Charges:
Finance charges on this credit card are high, with a going rate that presently stands at 21 percent annually. There is no annual fee, but J.C. Penney will charge you a late fee if the payment is not received in a timely manner. And there is also the possibility of having your credit limit reduced if any payment is received late.
Customer Service:
J.C. Penney offers continuous support for its credit card customers. You can logon to the web site, jcpenney.com, at any time and view your account information, make payments, ask questions, etc. You can also call the support line, 800-527-4403, between the hours 7am and 8pm Eastern Time, Monday through Friday; 8am to 8pm on Saturday; and 10am to 4pm on Sunday.
Final Thoughts:
J.C. Penney is one of the oldest and largest U.S. retailers and most everyone in the nation has visited its stores at least once. They are usually found in shopping malls as an anchor store and they usually offer some decent- although not great- merchandise for purchase.
J.C. Penney’s credit card is one of the first credit cards I ever obtained and the reason is obvious: It is one of the easiest cards to get approved for. I got my first J.C. Penney charge card when I was eighteen (along with other store cards), used it for a year or so, cancelled, and then signed up again on and off over the course of the next fifteen or so years. I usually sign up impulsively- the result of an advertised incentive for cash off of a purchase if I agree to establish a new account.
Like I mentioned, this card is easy to get approved for- easier than with a Visa, Master Card, or other big- name credit card. This fact can be both good and bad: Good, because it can help young people get started by establishing credit and help others who have been denied credit by giving them another chance to establish themselves; bad, because the quick approval makes it easy to get hold of a card and go on a spending spree. J.C. Penney will often approve customers for credit in minutes, right at the physical store location, so that you can quickly begin to charge purchases. If you have a job and a so- so or better credit score, you should have no problem getting approved for this card.
If you’re looking for a credit card with lots of features and widespread usage, you will not like the J. C. Penney card. First of all, it has limited use, so it is no substitute for a Visa, Mastercard, Discover, American Express, or similar card. It doesn’t offer cash advances and other special features and it can only be used at J.C. Penney, CVS Pharmacy, and Eckerd stores. These latter two options were added more recently- there was once a time when you could use your J.C. Penney card only at the retail stores. But J.C. Penney has wisely decided to partner with these other retail outlets to satisfy customers and expand card usage and profits. This expanded use is better than nothing, but it doesn’t come even close to the usage you get with a general purpose credit card.
J.C. Penney often has in- store incentives to encourage people to get this card. The incentives are often offers like 㥶 percent off your current purchase (up to a fixed limit) if you sign up for a J.C. Penney Card”. These and other offers are found throughout the retail stores and it’s common to get an offer like this one right at the checkout. And if you visit the on- line store, you will usually be enticed here as well, with similar offers for a percentage off your on- line order if you sign up for a card at the check- out. I admit I have accepted these offers in the past, just to get the quick discount and there is small chance I may do the same thing again shortly (J.C. Penney often sweetens its enticement offers during the holiday season). But I wisely paid my bill in full right away and then cancelled it to avoid the high interest and lack of usage capabilities.
Interest rates on this card are high, but the card does offer a few advantages that other cards don’t give. Besides the easy approval, this credit card offers lower monthly payments than other cards- usually just a tiny fraction of the outstanding balance. But again, it’s a mixed blessing. It’s nice to have the flexibility that a small payment offers and it’s nice for those times when you’re in a financial bind. But lower payments also mean that a very small portion of each payment is applied to the principle balance. And that means, if you make only minimum payments, you will end up paying back a dollar amount that could equal several times the amount of your original purchases.
One other shining star in the J.C. Penney Credit Card portfolio is its friendly customer service. I have heard others complain about them, but I have found the people at J.C. Penney’s customer care line to be very friendly and helpful. Of course, I haven’t experienced the problems that others have with this card. Maybe my positive experiences with customer service are the direct result of my solid track record with making payments? I’m not sure what the reason is, but based on my own experience, I have to give J.C. Penney’s customer service an above average grade.
Overall, J.C. Penney’s Credit Card is a tough one to rate. I generally avoid store credit cards like the plague because of the high interest rates and based solely on financial considerations, this card would not be recommended. But I like the friendly staff at the credit card center and I like the fact that there is no annual fee and special percentage- off incentives to sign up for the card. Thus, I feel the J.C. Penney Credit Card is worthy of 2.5 stars. I’m going to round my rating to three stars and give this card a recommendation mainly due to its easy approval, in- store incentives, and friendly customer service. If you play the game right and pay off your bill in full each month, this credit card really isn’t too bad. It’s no substitute for one of the better Visa’s or Mastercard’s out there, but it is one of the better store credit cards I have ever used.
Recommended:
Yes
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