Who are they?

Picture it - Ohio… 1900… Harvey Firestone opened the doors of a tire manufacturing company. Starting Firestone Tire & Rubber was a risky venture for the time. There were hardly any cars on the road. But Mr. Firestone envisioned an opportunity that others did not see. For this, he was rewarded with great success. It only took six years for his small company to reach the million sales mark.

Eventually the company’s reign spanned across the nation. Americans were not only choosing Firestone to tend to its automotive needs, but they were also tuning into Mr. Firestone radio show each week. The Firestone name and the Firestone brand had become an iconic.

After standing alone for 88 years, the company was brought under the wing of the Bridgestone Corporation. The takeover exposed Firestone products into a different arena… the global market.

Today, with 6,000 locations, Bridgestone/Firestone is one of the fiercest players in the auto industry. The company offers a wide range of automotive products and services. However most associate them with their signature trademark, tires.

In the news

Recently, Firestone increased the price of tires to compensate for the rising price of rubber. However, with a weakening economy and sluggish sales, this is still not enough. The company announced last week that its Noblesville, Indiana plant will cease operations in 2009. The plant has been a major employer in the town for 72 year years. Unfortunately the plant closure will result in 300 jobs lost… a hard hit for a small community.

In other news… Although the particulars have not been publicly revealed, the state of Ohio offered a sweet deal to Firestone. This state approved a proposal that would allow the company to skate over $18 million dollars in potential tax bills. What will the state receive in return? An economy-stimulating, state-of-the-art Firestone tire center operating in the heart of Akron for the next 18 years.

The card

Basics

• Firestone’s credit card is issued by Credit First National Association (or CFNA for short)
• 21.84% APR on purchases… which increases to 24.84% for the next 6 months if your payment is not received within 5 days of the due date
• 25 day grace period
• Interest computed on average day card balance with a minimum of $1.00 finance charge for each cycle in which there is a balance
• Staggered late payment schedule - $15 for balances less than $100, $25 for balances of $100 up to $299.99, $33 for balances of $300 plus
• $29 bounce check fee
• Over the limit fee not specified
• No annual fee
• Privacy policy - They’ll collect personal information about you and selective share (sell) it with affiliates, third parties… you have the right to opt out… blah, blah, blah

Extras

• 90 day interest free payment plan for certain purchases

My take

If it were not for the 90 day interest free payment plan, I would say stay away from this card. The interest rate is ridiculously high! And on top of having a high APR, there are no benefits (like points, cash back, miles) of having the card. The use of the card is restricted to only Firestone or Bridgestone stores. Therefore transportability is nonexistent. However, if you are planning a shopping spree at the local Firestone, use this card! That is only if you pay the entire balance within the 90 day period. The no interest thing is a good deal. Other than that, 22% interest is a rip off.

The way I see it… the 90 day thing is a ploy to get you to buy their products. And the 22% APR thing is a great deterrent to maintaining a balance.

Use the card the way it was designed to use, then you’ve got yourself a winner. Use it in any other way, then you are getting screwed.