Last month I needed to make a large purchase (a new refrigerator for my home) and decided to get a Sears card to get an additional 5% off my purchase. I didn't care about interest rates because I had planned to pay off the card immediately. Flash forward to today and due to other expenses this month I will need to leave a balance on the card. I was shocked to find out that Sears charges 25.99% interest on their Sears cards. Money is as cheap as ever right now--my "high interest" savings account that was pulling 5.05% interest is now at 0.35%, my regular savings account is at 0.2% and home interest rates are around 5%, how can Sears justify ripping people off to this degree?
I will be paying off my Sears card this month and leaving a balance on my regular credit card since it is "only" 13.99% interest and cancelling my Sears card. What a ripoff.
What do you home owners do for temporary credit when you unexpectedly need to buy something expensive? Does Home Depot charge interest rates that high for temporary lines of credit?