The Goodyear Credit Card from Goodyear Tire & Rubber Company (NASDAQ: GT) provides customers with the option to finance their new tires, auto repairs and other services performed at Goodyear locations. The card, which Goodyear offers through Citigroup Inc. (NYSE: C), features several perks, such as zero-interest plans for certain types of purchases and mail-in rebate deals. Like any credit card, however, its terms and conditions feature fine print that prospective cardholders should review prior to signing up.
How Does It Work?
When used at Goodyear locations or on the company website, the card works like any other credit card. It offers revolving credit up to a certain limit determined by the cardholder's creditworthiness. The borrower can use the card to finance purchases made at Goodyear and pay off his balance in full each month in order to avoid paying interest or carry a balance and make monthly payments, which include interest, on that balance. The card is accepted at more than 6,100 locations nationwide. Interested customers can apply for the Goodyear Credit Card in person at store locations or on the company website. Most customers receive a credit decision within a few minutes.
Rewards & Benefits
The Goodyear Credit Card's biggest benefit is 0% interest for six months on purchases of $250 or more. This program allows cardholders to pay off new tires or other products and services slowly over time without incurring borrowing costs. The cardholder must still make the minimum payment amount each month and pay off the purchase in full within the given time, which is either six or 12 months. Failure to do so results in revocation of the 0% interest benefit and interest being applied to the purchase. Cardholders also receive special mail-in rebate offers, $5 off oil changes when paying with the card and free tire rotations.
Who Benefits the Most?
Loyal customers who buy their tires and get their oil changed exclusively at Goodyear benefit most from the card. Particularly if a cardholder has multiple vehicles in his household and finances new tire purchases, he or she can save money on interest charges with the Goodyear credit card versus paying with a traditional card. Furthermore, while $5 savings on oil changes may not sound like much, it can add up for a person who drives a lot or has several drivers in his household.
A person who does not spend money at Goodyear regularly probably has little need for the card. The little bit that he or she saves here and there might not be worth the hassle of keeping up with another credit card payment.
Several tire and auto repair retailers offer credit cards similar to Goodyear's. The Discount Tire credit card has a similar 0% interest benefit for large purchases. Its threshold to receive six months of no interest is slightly higher than Goodyear's, at $199 rather than $250. However, to receive a full 12 months with 0% interest, a Discount Tire customer must spend $1,500. Firestone offers its own credit card that provides 0% interest for six months. From May 1, 2020 through July 31, 2020, no minimum purchase is required.
The Fine Print
As of May 2020, the Goodyear Credit Card comes with an annual percentage rate (APR), at 28.49%. The Firestone card, by contrast, carries an APR of 28.8%, and the Discount Tire card's APR is 29.99%.