Point-of-Sale Loans vs. Texas People

Texas People FCU Blog

Money tends to be tighter around the holiday season. And although it may be a financial stretch to get the perfect gift for that special someone, many ultimately decide to purchase that item on credit and worry about the cost at a later date.

There are a multitude of ways to pay for gifts for friends and loved ones while using credit, but which offers the best possible value for your money? We want you to be aware of point-of-sale loans, and specifically Affirm with Amazon and Walmart, in contrast to the use of our Texas People Mastercard.

For starters, Affirm is an online credit option that allows buyers to make payments on select items upon approaching your virtual shopping cart. With Amazon and Walmart, loans from Affirm can range from 10-30% APR on purchases greater than $50, which is greater than the highest APR on most credit cards.

In contrast, our Texas People Mastercard offers a 9.90% APR with a revolving loan term, which means that your credit is automatically renewed once your payments are finished.

If you were to use Affirm to purchase items worth up to $500 and were to pay it off in twelve months using their average APR rate, you would pay over $1252. In contrast, if you use our  MasterCard instead, at the 18% versus 9.9% APR comparison, you would save $375 in payments over a 12-month payoff that could be utilized toward something else!

All in all, if you’re purchasing an item at a high interest rate, and won’t be able to afford to pay it off in the short term, consider our Credit Card options to help you save!