Gamestop credit scam

[Deleted]

morale of the story? Don't spend money you don't have

[JestersShadow]

morale of the story? Don't spend money you don't have

I have always said to friend that you should not even go into Overdrafts in banks but alas ...

[dd614]

A smart person would live within there means and wouldn't get a credit card. I'm 30, had a £500 limit card when I was doing my PhD for booking hotel rooms on conferences which has since expired due to inactivity, and only accrued my student loan as debt. It's really not hard to do!

"Living within their means" is impossible for a lot of people because they lack the mental capacity to manage funds and plan for the future.

[Kelimbror]

So while this isn't a 'scam', it's definitely exploitative and predatory practice. I'm surprised this hasn't really gotten rolling strongly since the economical fallout, but there are many legal entities gearing up to bring cases against these types of marketing practices. It's easy to sit here and say 'it's their fault' for x,y,z....but the reality is many young adults are not educated in how this works.

They don't know how interest works, they don't know the potential consequences, they don't know terminology, and they don't know their job future. Even as someone who has worked since first legally able and paid for everything with my own money, I didn't realize how 'no payments for a year' worked. That lesson was the one and only time I needed to understand the system, but for some people that first lesson can ruin your life.

There's a reason they don't want cigarette ads to be targeted to young adults and children. Credit cards are really no different in that respect. So while the premise of the thread is quite contrived, there is a real underlying issue here.

[Keile]

Sounds very much like my BestBuy Card (although that has 18mo no interest....) After that 18mo I think it goes up to something like 24% RETROACTIVELY meaning itll apply even on the portion that you already paid off. So you never let it go beyond that 18mo.

If they give you a grace period of a month or two to pay without interest...it's not exactly bad. Just know what you are doing. Credit Cards are not evil, just don't abuse them and don't buy outside of what you cannot afford in X amount of time. This is why you set a limit on them (don't let them give you a card with a super ultra high maximum...set a modest one. I set mine to $700. I know that in 18mo I can easily make that $700 before my deadline).

[Yunru]

Yeah, predatory is the right word here, for certain.

It's a shame that these concepts aren't something that is required learning in High School at least. As I got into adulthood I realized that - as teenagers - we were more correct than we realized when we said things like, "This class is dumb, I'll never use this in real life."

In high school you wont learn this....ever. Unles you go to special one. They rather teach you some usles stuff.
I realy dont know why there isnt anything like this as a class.
Once 1h a week and it lets you learn how to avoid doing stupid things.

[Nellise]

In high school you wont learn this....ever. Unles you go to special one. They rather teach you some usles stuff.
I realy dont know why there isnt anything like this as a class.
Once 1h a week and it lets you learn how to avoid doing stupid things.

My high school taught math even to the slowest kids, so they did teach it. Maybe other schools don't teach math?

[Keile]

In high school you wont learn this....ever. Unles you go to special one. They rather teach you some usles stuff.
I realy dont know why there isnt anything like this as a class.
Once 1h a week and it lets you learn how to avoid doing stupid things.

They taught me how to do APR and how to calculate Credit Cards and such in High School....

[Nellise]

"Math" really has nothing to do with teaching the concepts of consumer finance.

I know I used "math" generically, but there are interest rate type problems on the college entrance tests (SAT/ACT). So maybe the lowest level kids didn't see those types of problems I guess .

[powerstuck]

How is this a scam?
Usually interest rates depend on your current credit, so 26.99% would be the highest it would go with horrible credit. That is no different than any other credit card, especially a third party one. This may blow your mind, but if you don't spend what you don't have then you get a 0% APR.

Actually, legally the highest interest rate can go is 59.99%.

[Kelimbror]

"Math" really has nothing to do with teaching the concepts of consumer finance.

Yeah....and even then it's not like there is a structured and constant system to teach you to be an adult. Education only prepares you for more education which is to say that it's a collection of test scores and little useful knowledge. College systems seem much more capable of this, but then the burden is on the student to seek out that knowledge instead of having it forced on you. It's not like the need for educational reform is news or anything though. I don't expect any changes on that front really ever unfortunately.

[darxide]

This isn't a scam, this is just how credit cards work. This interest rate is a bit high, but it isn't unheard of.

One could argue that credit cards themselves are scams. Either way, it's still Gamestop. Gamestop is like Axe bodyspray. Only used by 13 year olds who don't know any better.

[The One Percent]

It's hilarious how many people don't understand how credit cards work. No wonder there are so many of you in debt.

[Tradewind]

Why would anyone need a credit card for game stop anyway? It makes zero sense as opposed to something like a Best Buy card, which still has a shit awful interest rate but you at least can get an interest deferred plan and as long as you pay it off in 6 months there's no interest at all and no fee up front. Which makes more sense if you're buying a TV or a laptop, but not some xbox games...that's ridiculous.

[Nellise]

Yeah....and even then it's not like there is a structured and constant system to teach you to be an adult. Education only prepares you for more education which is to say that it's a collection of test scores and little useful knowledge. College systems seem much more capable of this, but then the burden is on the student to seek out that knowledge instead of having it forced on you. It's not like the need for educational reform is news or anything though. I don't expect any changes on that front really ever unfortunately.

It looks like there are a bunch of options for personal finance courses for high school students. Here's one http://www.moneyskill.org/. How often they're implemented or how widely available I don't know. I'm guessing when it is offered it's probably an elective, but maybe they'll be more widely implemented in time (reading through that site, 4 states require 1 semester of it, 21 others require it to be taught as part of other courses).

[Edge-]

Huzzah! More overreaction and "ERHMAGAWD GAMESTAHP IS EVUL!!!!!" mentalities!

This is simply them offering their own credit card for use in their stores, just like many big retail outlets like Target, Sears etc. do. Are they great cards? Not really, as they usually have strange fees and higher interest rates attached to them, but they do net you some good benefits if you use them.

The reality is if you're a responsible consumer and you plan your purchases out according to a budget, you're rarely going to have to eat any interest costs. Granted I've been financially fortunate and have either had a job that pays the bills or enough in the back to get by when I was unemployed, but I've never paid a single late fee or any interest on my credit card in my life because I treat it like my debit card. It gets paid off at the end of every month.

The reality is this is part and parcel of many, many large retailers business plans. It's not great and it will definitely take advantage of some gamers who are unaware of how credit cards work, but it's also not something that's inherently evil or predator if you go into it educated about the matter.

[Lessthanzer0]

So lets get this straight...

You get a credit card.
You buy things with it.
You don't pay on it for a year.
Interest builds up.
You've been scammed.

Ooookaaaaaaaay...

this. i'm assuming the OP doesn't understand how credit cards work. not for nothing but 26.99% isn't an unheard of interest rate. i've seen some cards with 29.99%. there is nothing wrong with this Gamestop credit card. Yes the interest rate is high but they are also trying to get 18 year olds with no credit history to apply for them. Gamestop isn't the only company that sends 18 year olds preappoved credit card advertisements in the mail. i've gotten about 2-3 preapproved credit card advertisements every month since i turned 18.

oh an you can't NOT pay a credit card for a whole year. they will close the account and peruse legal action. before you know it you will have a court summons in the mail.

[Fallen Angel]

tl;dr not a scam. pay your bills

[Lessthanzer0]

Sounds very much like my BestBuy Card (although that has 18mo no interest....) After that 18mo I think it goes up to something like 24% RETROACTIVELY meaning itll apply even on the portion that you already paid off. So you never let it go beyond that 18mo.

thats how most 0% interest promotions work. its not just Best Buy. if you make a purchase during a 0% interest promotion and don't pay it off by the end of it then you get charged all of the interest from that promotional period. CapitalOne does it, Chase does it and so does Amex.

[mistahwilshire]

So don't use it..?

If you're dumb enough to use any credit card that you're unsure whether or not you can pay for, then you deserve the debt. Just don't be stupid and this means nothing at all.