In the Nerds analysis, these cards are worth considering if you've already spent big bucks on Toys R Us or Babies R Us. Amazing levels of rewards for in-store purchases exceed what you get on any bank credit card.
What Toys R Us credit cards are available?
Toys R Us offers two credit cards:
“R” Us Credit Card: This is a store card, accepted at Toys R Us and Babies R Us, both in-store and online.
The "R" Us MasterCard: This card is accepted anywhere that accepts MasterCard.
These cards earn points in the retailer's "R" Us Rewards program. Points are worth 4 cents each in the form of "R" Us Rewards Dollars. You can start redeeming for 125 points, which is worth $ 5.
Cardholders earn 2 points for every $ 1 spent on Toys R Us and Babies R Us. At 4 cents each, it gives the cards an effective 8% reward rate.
If you have a MasterCard "R" Us, you get an extra 1 point for every $ 4 you spend on purchases outside of Toys R Us and Babies R Us. With 4 cent points, it was a 1% reward rate.
The Toys R Us credit card also gives you a six-month deferred interest financing option for purchases over $ 299, and 12 months for purchases over $ 749. However, you don't earn points for purchases you finance this way.
It is important to understand how "deferred interest" works. When a card offers deferred interest, it does not waive the interest. Rather, it was put aside until later. If you pay off your purchase at the end of the interest deferred period, you're fine. But if you take your balance past the end of the period, you'll be charged interest on all your purchases, back to the day you made them. And Toys R Us credit card interest rates are high: 26.99% as of November 2016, according to Synchrony Bank, the card issuer.
The Toys R Us credit card comes with other perks that the right person might find attractive:
15% discount on your first purchase after opening the card.
10% discount for in-store purchases from Thursday to March 30, 2017, subject to restrictions. (For example, it doesn't apply to video game systems, laptops, tablets and certain brands.)
Up to 10% back on purchases made from your Babies R Us gift list.
Should you get a Toys R Us credit card?
The 8% effective reward rate for purchases at Toys R Us and Babies R Us makes this credit card outstanding for someone who has shopped a lot at these stores. This is especially helpful for new parents who are faced with buying all the standard parenting for 21st century parenting - car seats, strollers, high chairs, bottles, blankets, diapers, diapers, diapers. Rewards points only apply to Toys R Us and Babies R Us, of course, but parents should have plenty of opportunities to redeem them.
The prizes make these cards an attractive alternative to paying with cash at Toys R Us and Babies R Us. And that's how you should use it - to buy only things you can afford to pay when your credit card bill arrives. When you pay in full, you will not be charged interest. However, when you carry your balance from one month to the next, interest arises, and at a 26.99% APR, it gets really tough.
An alternative to the Toys R Us credit card
No other credit card will match the reward rates available on a Toys R Us credit card for purchases made at Toys R Us and Babies R Us. However, you could do better than the 1% rate that MasterCard "R" Us offers for purchases elsewhere. Consider pairing a Toys R Us credit card with one of these no-year cash back cards:
The Citi® Dual Cash Card - 18 month BT offer gives you 1% cash back on every purchase, plus another 1% back when you pay them. Gift redemption options include a statement credit or check, and there's a minimum of $ 25. You can qualify for the Citi® Double Cash Card - an 18 month BT offer with excellent credit.
American Express's Blue Cash Everyday® card is a great choice for parents, as it offers high reward rates on some of the most common purchases for families. This gives you 3% cash back at US supermarkets (up to $ 6,000 a year in spend, then 1%); 2% at US gas stations and certain US department stores; and 1% elsewhere. Prizes can be exchanged for credit on your statement. There is also a great welcome offer for new cardholders.
IF YOU HAVE AVERAGE CREDIT
The Capital One® QuicksilverOne® Cash Rewards Credit Card provides 1.5% cash back on every purchase. However, there is no sign-up bonus, and there is a $ 39 annual fee. Since this is a card for those with only average credit, the interest rates are high: The current APR is a Variable APR of 26.99%. Make your first five payments on time, and Capital One can increase your credit limit.