"Mr. Sam" Offers Revolving Credit at Punitive Interest Rates
Written: Oct 14 '02
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Product Rating:
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Pros: Convenient for gas, warehouse, and Wal-Mart purchases; notification of sales.
Cons: High interest rate if balance is not paid in full each month.
The Bottom Line: If you carry a balance, SAM's Club Personal Credit is a great convenience. Use the three-months/no interest pay plan for big ticket items.
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| frazzledspice's Full Review: Sam's Club Credit Card |
Sam’s Club proves that there is such a thing as a free lunch, and Sam’s Club Credit Card makes it easy to fill up your car, your cart, and your stomach during a busy lunch hour.
Sam’s Club, located on a main road about three miles from my home, is my weekly gas stop. Only Sam’s Club members can fill up there, although the station accepts all major credit cards and Wal-Mart gift cards. With Sam’s Club Credit Card, I make one swipe, get gas at about $.07 less per gallon, and drive off to go take on the day.
If the day includes weekly or bi-weekly grocery shopping, Sam’s Club feeds your body and pampers your wallet. From cleaning supplies to freezer to pantry areas, Sam’s has friendly hosts and hostesses stationed with delicious samples of frozen appetizers, entrees, and main dishes, juice and cookies. Most items are priced at or near wholesale and, once again, can be paid for with a membership/credit card.
With low-cost gas, free lunch, and wholesale prices, will the average consumer quibble at the 19.9% interest rate this card carries when balances aren’t paid in full each month?
Interest, Rates, and Fees
Sam’s Club Personal Credit Card, administered by Monogram Credit Card Bank of Georgia, isn’t any bargain for customers who don’t pay their bills in full each month.
Annual interest is 19.90% with a 25 day grace period from billing to payment date. There are twelve different methods of computing this interest, based, I’m sure, on state of residence. Mine is based on average daily balance. There is no annual fee, although only Sam’s Club members are eligible to become cardholders. Sam’s Club Advantage Membership is $35. It’s Elite Membership, which adds on benefits such as Emergency Road Service, is $99 annually. Membership fees are added to the credit card balance during the member’s anniversary month.
The bill doesn’t note any overlimit or late fees. During an interstate move two years ago, I failed to make a payment and received a reminder telephone call. They don’t treat delinquent payments lightly! If payments are delinquent twice in a six-month period, the interest rate is increased to 24.9%.
Regular promotions offer Zero Interest payments for 3 months on grill, major appliance, jewelry, and tire purchases of $250 or more. Interest accrues but is forgiven if payment is made in full during the promotional period.
Places Where Sam’s Club Personal Credit Card are Accepted
Besides Sam’s Club, Sam’s Club Online, and Sam’s Club Gas Stations, the card can be used at Wal-Marts, Wal-Mart Supercenters, and Wal-Mart Neighborhood Markets. They can’t be used yet on Walmart.com or Wal-Mart Gas Stations.
If You Don’t Have a Sam’s Club Card, Can You Charge Items at Sam’s?
Sam’s Club accepts debit Visa’s and Mastercards and Wal-Mart Gift Cards, but keeps its low, low prices down by refusing to accept other credit cards. Recently, they have set up tables encouraging people to register for Sam’s Club Personal Credit Cards, offering small premiums (such as two liter bottles of Coke) to people who apply.
Sam’s Club Online accepts Visa, Mastercard, Discover, and American Express Cards as well as its own card.
Specials
Credit Card holders receive inserts offering $10 off purchases of $50 or more once or twice a year. They also receive a monthly magazine covering special features and benefits of Sam’s Club membership, and advising of special promotions. (One such promotion gave me a 4 pound trial size bag of Beneful Dog Food. My dog loves it, and we have bought it ever since.)
Sam’s Club Personal Credit Online
Sam’s Club online credit card site offers online credit applications, 24 hour a day account information, and online bill payment.
To pay bills online at the Sam’s Club site, customers must sign up through Checkfree to receive e-bills and make online payments. Online bill payment is free.
Other Sam’s Club Credit Accounts
Sam’s offers a business membership revolving account for business purchases for an administration fee of $15. Sam’s offers a special credit account to Fortune 1000 companies, schools, and government agencies, allowing a number of employee cards on one account.
What’s a Money-wise Person to Do?
Sam’s Club can be a very tempting place to shop, and it’s easy to overspend. I tend to overspend by the book aisle, where many best sellers and other books are displayed at about 40% off list price, but other “hot spots” for me include the CD and DVD aisles and gift aisles during the holidays.
Sam’s Club Personal Card is a great convenience if you pay the bill in full each month. If you roll balances over, it’s a terrible place to carry a balance.
A few months of high, high interest rates can easily turn a bargain into a premium price purchase.
Recommended:
Yes
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