GameStop Unleashing a Truly Awful Credit Card Just for Gamers
Many of us know that GameStop doesn't have the best reputation amongst the gaming community. Now they've gone ahead and added even more fuel to the fire with a credit card aimed directly at gamers in the most negative way.
GameStop will soon be offering a credit card to its customers within the next few months. PowerUp Basic members get 5,000 PowerUp Points and Pro members get 15,000 PowerUp Points just for signing up; and exclusive offers will be offered to cardholders. Rumor is that you’re "pre-approved" if you’re already a member (though it's unconfirmed at this time).
The card will offer an interest rate of 26.99% APR. That's twice the current fixed rate for credit cards of 13%, nearly twice the variable rate of 15% and at least 3% points above the APR that people with horrible credit get.
The "Special Financing" offers allow you to buy a lot on a low-interest rate, and then get slammed with the 27% rate at the end of six months if the balance is not paid off. Imagine buying one $60 game each month for a year, then paying only the minimum amount. It'll take you more than 8 years to pay off $720, and you’ll pay $914 just in interest--in interest! The long-term financial damage it'll cause for those who don't pay attention can be catastrophic.
I don't know about you but a GameStop credit card sounds like a bad idea in every way to me. It's a recipe for disaster aimed at getting gamers into long-term financial debt for corporate benefit, and to me that's not good business. Let us know what you think in the comments.
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