Just in time for the holidays: A jewelry store credit card that provides no- and low-interest payment plans. But make sure you pay the balance off on time and in full.
Who the Zales Credit Card Is For
- People looking for a low-cost way to buy Christmas jewelry gifts.
Credit Rating Required
- Fair to Excellent (660+)
About the Zales Credit Card
Pros
- No- and low-interest payment plans.
- No annual fee.
Cons
- Very high standard APR.
Rewards
- None.
APRs
- Standard rate: 26.99 percent.
- No interest if you pay back the entire balance within six or 12 months (minimum purchase $500).
Fees
- No annual fee.
- Late payment fee: Up to $39.
- Returned payment fee: $39.
Zales Credit Card Review
If you're looking to make a big splash this Christmas with an elaborate gift but don't think you can pay for it all at once, you should look into this deal by the Zales jewelry store chain.
The Zales Credit Card, only accepted at Zales stores, offline and online, normally has an astronomical 27 percent APR. However, the card does have a couple of attractive loan deals that allow you to borrow for as long as a year at no or low cost.
You can get a zero percent loan for six months if you spend more than $500 and put 10 percent down. You can also get a $1,000 no-interest loan for 12 months. The 12-month loan requires you to put 15 percent down and pay a $9.95 transaction fee. Still, that's a lot better than paying 26.99 percent to carry a balance.
Zero Percent APR Doesn't Mean Zero Payments
Whichever plan you choose, you must make minimum monthly payments of either $20 or 3% of your balance, whichever is greater, and pay the entire balance off in the time allotted. However, as Zales itself notes, making the minimum payment will not pay off the balance in time. If you don't make minimum payments, or if you're ever late with a payment, you will be charged interest- at the 26.99 percent rate - dating back to the purchase date. That will be very costly.
To make sure you don't fall into that trap, pay at least 20% of the balance each month if you choose the $500 option, or 10% of the balance if you choose the bigger loan option. That way you'll have the balance paid off and not pay any interest.
Recommendation
Zales Credit Card is a good deal if you want to pay off your purchase over time but don't want the charge on one of your other credit cards. However, it won't work if you don't pay off the balance in time. You're likely to be approved for this card, even if you have weak credit.