Overstock Credit Card Review

When you frequently shop a particular website, the option to apply for a store credit card is enticing. That’s particularly true if those cards offer discounts, rewards or exclusive offers.

Do you shop at Overstock.com often? If so, you may be curious about the store cards the company has available. Before you apply, check out our Overstock credit card review for all the information you’ll need.

What is Overstock.com?

Overstock.com used to be a website devoted to home furnishings. Shopping for a bedspread? Try Overstock. Looking for new patio furniture? Overstock.com has it.

Today, Overstock’s – well – stock has grown to include jewelry, clothes, baby products and even cars, through a separate segment of the company. The site claims to offer huge discounts on items as compared to the retail price. They also usually offer free shipping on purchases.

The quality and price of Overstock merchandise is really neither here nor there. We found the prices to be comparable to or higher than, say, Amazon. And Overstock reviews have a tendency to cite poor craftsmanship in furniture or raveling hems in clothing and linens.

With that said, though, the credit card offers may make shopping at Overstock more accessible. So is the credit card a good deal? Here’s what we learned while researching this Overstock credit card review.

Overstock Credit Card Review: The Basics

Overstock Credit Card

You can apply for one of two Overstock credit cards, directly through the website. Your options are the Overstock Store Credit Card and the Overstock.com Rewards MasterCard. However, that’s slightly misleading. The latter isn’t a credit card at all, and requires a $20 membership fee. So for the purpose of this article, we’ll speak only of the former.

The Overstock Store Credit Card is, for all intents and purposes, similar to other store credit cards. We’ve looked at a few recently, such as Kohl’s and Old Navy. For the most part, these cards carry high interest rates but some offer in-store or online benefits that tend to balance those rates.

The Overstock card is valid only on Overstock store purchases, which is different than some other store cards. However, it does have a unique benefit: the Overstock store credit card has a deferred interest program. If you pay your purchase in full within a specified time frame, you’ll pay no interest. That time frame depends on the dollar amount you spend.

Here’s what that looks like:

  • You can take 6 months to pay a purchase of at least $249 without paying interest
  • You have a year to pay purchases of at least $499
  • Purchases of $1,499 or more will give you a 18 month repayment term with no interest
  • If you spend $1,999 or more, you’ll get two years to pay

Following these repayment terms, your interest rate will be 28.49%. And in addition to your interest-free term, the credit card gives you 10% off your first purchase with the card, up to a $5,000 discount.

Overall, this credit card isn’t too different from any other store credit card. It does have more flexible repayment options than some, though, and that may be beneficial to you.

Overstock.com Credit Card: Pros and Cons

We’ve talked about a few of the pros and cons to the Overstock credit card already. We like the no interest options, and we also like that initial discount. And, when all is said and done, the 28.49% variable APR is no worse than other store credit cards.

You can only pay your Overstock credit card balance online. Of course, Overstock is a website, so this is to be expected. But to some, this may be less convenient than placing a call or mailing a check. Furthermore, you can’t pay your bill with a debit card. You must use your checking account via ACH transfer. Some banks will charge a fee for this service; Overstock does not.

The Overstock credit card is for people with at least a fair credit score. Your credit must be at least 620 in order to qualify for the card. That isn’t unheard of for a store credit card, but it will preclude some people from qualifying.

It’s worth mentioning in our Overstock credit card review that you don’t earn points or rewards when you use your card. While that’s not usually problematic, there are certainly competitors like Amazon that do offer rewards on purchases.

Finally, not all customers were pleased with the credit limits. Some were approved for just $250, which isn’t enough credit to buy much actual product on the site. Others were disappointed that their credit limits were decreased for seemingly no reason.

Do You Need an Overstock Credit Card?

Overstock Credit Cards

There are a lot of high ticket items on Overstock.com. Maybe you’ve been drooling over that $1,500 couch you saw, or a new memory foam mattress. It’s possible you can’t pay for it all at once; in cases like these the Overstock store credit card is a good option.

The initial 10% discount is also a plus, and you can use it right away.
Once you’re approved for credit you can simply begin to shop. There’s no annual fee and you can qualify for zero interest if you pay your bills on time. (Every time. One late payment disqualifies you from this offer.)

But the Overstock credit card isn’t for everyone. There are store cards available that you can use anywhere – again, the Amazon card is one that offers rewards for Amazon purchases or just filling up your gas tank.

The product offerings at Overstock are growing daily. It’s not just about furniture anymore. Instead, you can fulfil everyone’s holiday wish list on the site, then take your time paying it back. There are certainly circumstances which would make the Overstock store credit card more appealing.

Remember, though, that prices on Overstock may be higher than you’d find at other places. Do your research before shopping Overstock and applying for an Overstock store credit card. If you find something you can’t live without, or if you just want to be able to pay for your purchases in installments, Overstock is a great option.

Be sure to check some of the other credit card/store card reviews we have as well: