You’ve been waiting in line forever and the person in front of you just said yes to the following question, “Would you like to apply for the Gap credit card?” You roll your eyes and continue to wait. Now it’s your turn.You’ve been asked the same question a hundred times before. Should you sign up for the Gap credit card? The answer depends a lot on how you plan to use your card.
In order to entice new signups, a 10% discount is often offered when you apply at the store.On a $100 purchase, we’re talking ten bucks. Nothing huge to write home about. And, unless you’re buying clothes for an entire family, chances are that $10 to $20 is all you’ll save with the Gap card. However, once you’ve made your purchase, you’ll start paying interest immediately. And the interest rate on the Gap credit card, like most store credit cards, is fifty to one hundred percent higher than that of regular credit cards. Ouch!
Now, there are a number of benefits that come with the Gap card, including special discounts and the ability to earn ½% cashback on all your Gap purchases, which is doled out in Gap gift cards. Because of these rewards, those who pay their credit card in full immediately can reap benefits from holding a Gap credit card. However, if you don’t pay your card in full, you’ll begin paying over 20% in interest very quickly, more than enough to offset the “benefits” the card may offer.
So what should you do the next time you checkout at the Gap? If you can pay your bill in full as soon as possible, signing up for the Gap credit card may be a good deal. However, if you do not plan to pay for your purchases immediately, a standard low interest, 0% credit card may prove to be the best way to save money at the Gap.
For more information on the Gap credit card, visit www.gap.com/gapcard.
