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Little Switzerland Credit Card: Everything You Need to Know

by Last updated in Jun of 2022Credit Cards

If you’re visiting the Caribbean and are thinking of buying a luxury watch or fine jewelry, you might stumble across a Little Switzerland store. This chain is known for being the largest and most reputable authorized fine jewelry dealer in the area.

With 20 stores in Aruba, Bahamas, Barbados, Curaçao, Key West, Puerto Rico, Punta Cana, St. John, St. Maarten, St. Thomas, and Tortola, they’re everywhere. So getting a store credit card for financing options might sound like a great deal.

The financial institution behind this card is Comenity Bank. It has some benefits, but there are also some drawbacks to consider before you apply for one.

So let’s dive into the Little Switzerland credit card. ⏩  ⏩

    Features and Benefits of The Little Switzerland Credit Card

    Just like any other store credit card, the Little Switzerland credit card offers some benefits to encourage customers to apply. Let’s go over them in detail.

    Little Switz credit card features

    ✅   Promotional deferred interest financing is available for 6, 12, 18, or 24 months

    ✅   Considers applicants with fair or poor credit (minimum of 600) so appears to have easy credit approval

    ✅   No annual fee

    ✅   Zero fraud liability

    ✅   25-day, 0% interest grace period after payment is due

    ✅   Reports to multiple major credit bureaus like Equifax, Experian, and Transunion, which can help you improve your credit score if you make payments on time

    ✅   Immediate purchasing power after acceptance

    ✅   Trivial minimum interest charge

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    Little Switzerland credit card drawbacks

    Some Drawbacks to Consider

    ?   A minimum purchase of $295 is required for the 6-month plan

    ?   Extremely high, variable APR (currently at 28.99%)

    ?   No reward program for this card, so there are no points on purchases and no cashback

    ?   No signup bonus other than the promotional APR

    ?   Late payment fees of up to $41 and a returned payment fee of $41

    ?   Required minimum payment each month

    ?   Very limited acceptability, only in the 20 Little Switzerland stores

    ?   The 24-month plan is only available for Engrace, Avance, and Little Switzerland Jewelry

    There’s also the big caveat that the deferred interest is available for a single transaction only. This means that you need to put everything on one receipt for it to be eligible for the 0% APR promotion.

    Here’s a breakdown of the minimum purchase and which deferred interest plan it qualifies for.

    Zero Interest if paid in full within the promotional period:

    Minimum Purchase Required:

    • 6-month Deferred Interest: $295
    • 12-month Deferred Interest: $995
    • 18-month Deferred Interest: $2,995
    • 24-month Deferred Interest: $995

    The Little Switzerland website also says that some exclusions apply and that you should speak with one of their Personal Shopping Consultants or visit one of their stores for more details.

    Who Should Consider the Little Switzerland Credit Card?

    Who is the Little Switzerland Credit Card good for?

    This card has one type of customer in mind; someone who wants a luxury watch (or watches!) or ring, has no other way to pay for it, and has a low-enough credit score that another credit card is out of the question.

    If this applies to you, and you’re considering the Little Switzerland credit card, go for it. Just remember to pay the amount in full during the 6, 12, 18, or 24-month deferred interest period. If you don’t, you’ll be hit with the 28.99% variable APR, which will make paying off the credit card a lot harder.

    Why You Might Want the Little Switzerland Credit Card

    If you live in the Caribbean, where there are not many large, authorized fine jewelry dealers, or if you’re financing an engagement ring or a retirement gift, the Little Switzerland credit card might be for you.

    This credit card also comes in handy if your credit score is not that great because, unlike other credit cards from major banks, the credit requirement for it is quite low. It’s advisable that you pay attention to the fine print here, though, as there’s a lot of it. If you’re thinking of applying while you’re in a Switzerland store, you might want to take a deep breath and think it through first. There are likely better financing options than the little Switzerland credit card.

    What Is The Little Switzerland Variable APR?

    According to the Little Switzerland Credit Card Agreement document, the variable APR they have is a 25.74% margin added to the Prime Rate, which is subject to change. This means that at writing, their advertised APR is 28.99%, but it might increase by the time you’re reading this or applying for the credit card. This is extremely high!

    It also means that the APR might change from one month to another, and you won’t be notified of the change. You’ll only notice it if you pay close attention to your bills and see an increase or decrease in the installments you have to pay.

    Other options for financing your little switzerland purhcase

    Are There Any Other Financing Options From Little Switzerland?

    Little Switzerland offers an Affirm financing option, which gives you a loan you pay over 3, 6, or 12 months based on your credit score. Their APR varies from 10% to 30%.

    Unlike the Little Switzerland credit card, this option is paid via debit card, a check, or a bank transfer every 30 days. You also see the full price you’re supposed to pay upfront, so there are no hidden fees or variable rates.

    The steps to apply are simple:

    1. At checkout, when choosing a payment method, click on Affirm.

    2. Enter your basic identity information.

    3. Affirm will text you an authorization PIN code; enter it. Then, they’ll process your request and show you the loan you’re approved for, including the interest rate and the number of months you have to pay it off. You’ll also be able to choose your 3, 6, or 12-month loan repayment option.

    4. Confirm your loan to accept your financing terms, and you’re ready to receive your new watch or piece of jewelry.

    Wait, what is Comenity bank?

    Comenity Bank is a part of Bread Financial, a publicly-traded financial institution. They are known for providing many different private label and store credit cards – just like the little Switzerland credit card.

    Many of their store cards are extremely similar and have the same features and benefits, like no annual fee, promotional periods on a large purchase or purchases, low minimum payments, and relatively easy credit approval. You can learn more and visit their website here.


    Final thoughts on the Little Switzerland Credit Card

    The Little Switzerland credit card is a fine option if you don’t have much of a choice when it comes to financing jewelry or luxury watches. Most people are likely to be approved, even those without other financing options.

    It can be a good way to pay off a major jewelry purchase over time, if you’re confident you can make the minimum payments on time and pay off the full promotional balance during the promotional period as well. If you can’t stick to this, the very high-interest rate will make your purchase substantially more expensive!

    The high variable APR margin, as well as the lack of reward points or cashback offers, make it a less-than-lucrative deal. You can get a better deal using conventional credit cards. However, that option isn’t always available because it depends on your score.

    If your credit score is good and you have other options available for a credit card, go for one of them. You can also try the Affirm option, which will base the APR on your credit score.

      Looking for little Switzerland credit card customer service or login?

      Customer Service

      Call: 1-866-884-9859 (TDD/TTY: 1-800-695-1788)

      They’re open Monday-Saturday, 9am-9pm EST. Closed Sundays. (may be closed on holidays)

      Their address is:

      Comenity Bank

      PO Box 182273

      Columbus, OH 43218-2273

      Editor's Note:

      At Personal Finance Guru, we want to help you maximize your lifestyle through personal finance. You can trust the integrity of our independent financial advice. Our opinions our own and have not been provided, review, approved, or endorsed by any advertiser or financial product provider. To support and grow the site, however, we may receive compensation from the issuers of some products.