Advantages and disadvantages of BJs credit cards

A BJ's Visa card adds two percent to the savings already garnered through having a membership at BJ's and any use of manufacturers coupons, and store coupons. In other words, provided a BJ's credit card balance is paid off before the end of each billing cycle, the potential for cheap groceries rises. The overall savings can be well over 10 percent if all the potential benefits of shopping at BJ’s are considered.

Pros:

• Increases potential savings

To illustrate a potential money saving transaction using a BJ’s credit card the following example is used. To purchase 3lbs of coffee $15.00, 1 gallon of milk $4.00, grapefruits $5.00 and various brand name items $30.00 with no savings would cost $54.00 before tax. After applying manufacturer and store coupons the savings is 15 percent for a new total of $45.90. After using the BJ’s credit card the additional savings is  .91 BJ's bucks for a total of $43.99 before tax if one transfers the value of BJ's bucks to the purchase.

• Temporarily lowers existing credit expense on balance transfers

For people with existing credit card balances looking to consolidate and benefit from a BJ’s credit card, a 0 percent Annual Percentage Rate applies for the first six billing cycles following credit balance transfer. If a responsible shopper can pay that balance off within the six billing cycle allowance, the remaining cost of that credit card debt can be potentially reduced to little or nothing of the original cost.

• Good for frequent BJ’s shoppers

With no annual fee and bonus points on BJ's specials and promotions, the BJ’s Visa card may be just the credit card for families and budget conscious consumers who regularly purchase items in bulk or through the BJs wholesale club, BJ's online, or at BJ's gas stations. For example, if  a BJ’s shopper spends an average of $295 at BJ’s every two weeks, that’s $7,670 or 76.7 BJ’s Bucks per year. Although it doesn’t seem like much, this type of saving habit can be multiplied when used across a higher percentage of household purchases.

Cons:

• High interest rate

The BJ’s Visa credit card is still a credit card and inherently carries risks associated with credit card use. These risk include accumulation of high interest credit balance, overspending, and potential for a lower credit score. The interest rate on BJ’s Visa card is quite high,  13.99-24.99 percent on purchases not paid before interest is assessed. The penalty APR for late payments, spending over the credit limit and bad payments is a 30.24 percent APR so paying off balances in a timely manner is important with the BJ’s credit card.

• Can cause credit issues

If the possibility of not being a responsible credit card user exists, it may be better to not use a BJ’s Visa credit card as the savings are relatively small in comparison to the savings acquired through the use of coupons. Moreover, since coupons can save 10 percent or more on an already discounted item, the use of a credit card is really more of an added bonus on future purchases than the majority of one’s savings. Potential credit issues include, high interest rate balances, overspending, and credit score damage.

• 30 BJ's bucks must be earned

In order to redeem BJ's bucks, 30 BJ's bucks have been earned. This is the equivalent to $1,500 in spending at a rate of .02 BJ's bucks per dollar spent. For shoppers who don't plan on spending this much on BJ's gas, or other retail items, the card's benefits may be lost. The potential for accumulating enough BJ's bucks may also lead to overspending on un-needed items in order to benefit from the BJ's card and bonus BJ's buck program.  Also, if a BJ's membership expires, a non-member surcharge can negate the advantages of spending with the BJ's credit card.

Source: http://tinyurl.com/34gdro8 (Barclaycard U.S.)