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Gap Charge card Review – Credit Sesame
If you’re a frequent shopper in the Gap and also the Gap group of stores, the Gap charge card might be a good fit for you personally. Along with its rewards program, the Gap credit card offers benefits for example 10% off every Tuesday at the Gap and Gap Factory websites and stores, priority use of special attractions, exclusive discounts, and special savings in your birthday.
EDITOR'S NOTE: All of the offers, such as the Gap Inc. Charge card (the store credit card) and also the Gap Inc. Visa(R) Card, mentioned in this article are expired and therefore are no more available
Although this card offers some attractive perks, additionally, it comes with a high annual percentage rate (APR). Consider the kinds of cards available, the rewards, and also the expenses associated with this card before applying.
Types of Gap credit cards
Applicants can decide on two kinds of Gap charge cards: the Gap Inc. Credit Card (the shop charge card) and also the Gap Inc. Visa(R) Card.
Both cards provide accessibility rewards program, and both cards may be used on the internet and in-store in the Gap family of stores, which includes Gap, Banana Republic, Athleta and Old Navy.
The biggest difference between the 2 cards that you can use the space Inc. Visa(R) Card anywhere that accepts Visa(R).
Cardholders can also make use of the Gap Inc. Visa(R) Card to get a cash loan.
Gap credit card APR along with other fees
Both types of Gap charge cards include no annual fee and a variable purchase APR of 25.24%. This rate varies based on the market and also the Prime Rate. The penalty fee for a late payment runs as much as $37. The space Inc. Visa(R) Card charges a variable APR of 27.24% for cash advances. Additional transaction fees incorporate a foreign transaction fee of 3% of each transaction and a cash advance fee of either $10 or 4% of the amount of each cash advance, whichever is larger.
How to cope with the high interest rate from the Gap credit card
Retail cards are renowned for their high interest rates, but when cardholders make use of the card wisely and practice proper managing debt, they can not pay large amounts of interest. The financial institution won't charge interest should you spend the money for balance in full every month by the due date. If you're unable to pay the card in full every month, work to pay the balance as quickly as possible to reduce the ultimate cost of your purchases.
Store cards are only well worth it if you're able to pay off your balances entirely every month to avoid the high rates of interest. Late payments are detrimental for your credit rating. Credit Sesame data shows that the majority of our members are responsible with paying their credit cards promptly, about only 1% in late payment status.
| Status | Percentage of Credit Cards |
|---|---|
| Late Payment | 1.36% |
| Current | 87% |
| In Collections | 8% |
For a closer look at how payment habits affect the bottom line, consider the following scenario:
David charged $500 on his Gap credit card. He paid only the minimum amount due on his card each month (3% or $25, whichever was greater). It took him 27 months to repay the charges, also it cost him $174 in extra interest charges. Ouch. That's 35% over the price of the items he bought.
Susan charged the same amount on her Gap charge card, but she paid $100 every month. She was able to repay her balance in 6 months, also it cost her $37 in extra interest fees.
As the above mentioned scenario illustrates, the faster you pay off a balance, the less you spend on interest. Experts suggest paying down large purchases within six months or sooner.
Minimum credit rating for a Gap credit card
Synchrony Bank, the financial institution that issues the space credit card, doesn't specify the absolute minimum credit score required to be eligible for a either credit card. In general, if you have fair to get affordable credit, the chances of approval are favorable, but not guaranteed.
If you are not sure where your credit score falls, this is the time to request a copy of your credit history score from Credit Sesame. You may also wish to read What is a Good Credit Score? that we published recently.
See the way you compare to Credit Sesame members with regards to your credit rating.
Understanding your credit report
A credit report provides lenders having a snapshot of a card applicant's credit rating. Everyone has a credit history with every from the three credit bureaus: TransUnion, Equifax, and Experian. Each bureau uses the data in its file to calculate a credit rating.
The bureaus base this three-digit score on five weighted major factors, (these percentages are general guidelines) including payment history (35%), the amount of money a person owes (30%), the size of their credit history (15%), the kinds of credit she or he has (10%), and any new credit (10%).
The good, the bad and the ugly
Most lenders have their own definition of what makes a “good” credit rating. The list below provides a general guideline of where most credit ratings fall:
- Excellent: 750+
- Good: 700-749
- Fair: 650-699
- Poor: 600-649
- Bad: below 600
Higher scores show lenders that an applicant is financially responsible, while lower scores could indicate this person might be a greater risk to give loan to. Make sure your payments post promptly and carry low balances on all credit cards; both of these factors constitute more than half of a credit rating and thus influence its movements the most.
Gap credit card rewards
When you open a spot charge card, you’re automatically signed up for the rewards program, which lets you earn points on all qualified purchases. To maximise reward points, use the card exclusively at Gap brand stores to earn five points for each dollar spent. Gap Inc. Visa(R) Card cardholders may also earn some point for each dollar they invest in their Visa card away from the Gap stores. Cardholders obtain a $5 reward for each 500 points they accumulate.
Silver status
If you get 5,000 points inside a calendar year, you'll earn Gap Silver status, which provides extra perks like a choose-your-own-sale day and a 20% quarterly bonus on reward points. For instance, for those who have 1,000 points, Gap provides you with an additional 200 bonus points if you've reached Gap Silver status. Other Silver benefits include online for free shipping (with code), special events only for cardholders, and free basic alterations on any Banana Republic purchases.
Store cards such as the Gap charge card will help you set up a positive credit history with responsible use on your part, and offer rewards on purchases that you plan to make anyway. Do keep in mind this card comes with a hefty rate of interest that can inflate the ultimate cost of a shopping adventure. Should you shop frequently in the Gap family of brands and therefore are you are attempting to decide if the Gap charge card is a great option according to whether you’ll be able to make the instalments on time and if you’ll be able to pay the balance within 6 months. When the response to either of these questions is “no,” you may want to rethink applying for the credit card.
