Mor Furniture Credit Card: Is a No-Interest Card Really a Great Deal?

When purchasing big-ticket items such as furniture for our homes, most of us do not have the means to pay for such items with cash out of pocket. Many of us are forced to use credit cards or some type of payment system in order to make these purchases feasible.

But no one likes debt.

This is why many new homeowners, if shopping at Mor Furniture, might be tempted to sign up for the Mor Furniture credit card which can offer no interest financing for furniture purchases.

Mor Furniture Credit Card Terms

According to the Mor furniture website, the Mor Furniture for Less credit card has a number of different tiered financing options for consumers based on the amount of their purchase. Today’s special allows a minimum purchase of $899 (a few months ago, a purchase of $3999 was required to get the maximum term for no-interest financing) for any term financing.

Purchases can receive 12 to 18 months of no interest with the Mor Furniture credit card, and up to no interest for five years with equal payments with the $899 minimum purchase. No interest financing is offered for any purchase amount for six months.

Purchases not paid off before the promotional no interest financing expires on the credit card will incur a regular interest rate. Currently, the interest rate for a Mor Furniture credit card is 28.99%. This rate is much higher than nearly any bank-issued credit card on the market.

While most customers think it should not be a problem to pay off their credit card during the term of no interest, life sometime takes unexpected turns, and consumers are not able to pay their remaining balances before the interest free financing is up. And while the customer was not paying interest on the loan, it doesn’t mean interest wasn’t accruing.

In general, there are several concerns that revolve around the use of a store branded credit card such as a Mor Furniture credit card.

Consumers using store branded credit cards are using a “last resort” loan, and these types of loans may be looked down upon by creditors. Also, there is no room to negotiate prices on big ticket items using a store branded credit card as opposed to paying cash.

The biggest issue, however, is that store credit cards charge back interest, and this can be very damaging for many consumers.

While the extensive no-interest payment plan seems to help out consumers, what consumers typically do not understand is that if the balance is not paid in full before the completion of the promotional 0% interest rate, the interest is then charged as a deferred interest for the whole length of the loan, and not just during the portion of time that exceeds the introductory 0% interest.

As an example, if you purchased a living room set at Mor Furniture in the amount of $5000 and paid off $4800 of your purchase before the end of the introductory period, you would then have a remaining $200 from your purchase to pay plus more than $1000 in interest that had been deferred from the beginning of your purchase.

Consumers tend to think that they would be paying the 28.99% interest on the remaining $200 balance, but this is not how a Mor Furniture credit card works. For those individuals who are absolutely certain that they can, and do, pay the balance off before the close of the introductory period, they are not be forced to pay the deferred interest.

However, none of us are able to have a crystal ball to see into the future, and we never know what kinds of financial emergencies may arise. In cases like this, what starts out looking like a good deal could in fact be very costly.

Mor Furniture Credit Card Lawsuit Investigation

Lawyers are currently looking into the potentially deceptive practices of store branded credit cards at a number of retailers, including Mor Furniture. Consumers who faced high interest charges for purchases on a Mor Furniture credit card after participating in a no-interest program can receive a free case evaluation to potentially recover these high interest fees.

Join a Free Store Debit Card and Credit Card Fees Class Action Lawsuit Investigation

Did you participate in a 0% interest promotion on a store-branded credit card and were charged an interest fee? Were you unexpectedly charged a Returned Payment Fee on a store-branded debit card? You may be eligible to join this class action lawsuit investigation into allegedly deceptive store card fees.

Join the Investigation Now