Looking to save money, people are signing up for the warehouse club stores like Costco and Sam’s Club in record numbers. For an annual membership fee of $35 – $100, frugal shoppers can save hundreds of dollars a year stocking up on big bulk items such as a package of 15 rolls of toilet paper.

Buyer Beware: Watch Your Saving Disappear

Some warehouse clubs limit their payment options and instead offer a personal credit card for their store. The standard card comes with a rate of 23% APR which is about 9 points higher than current average variable credit cards.

It gets worse …

Some stores will sell your contact information to third parties. So not only are they gouging you with the credit card rate but your phone will begin ringing off the hook with telemarketers. By just signing up for one of these cards you are automatically opted-in to their “third party offers”. To get off the calling list you must call a toll-free number or mail in your request.