Ikea Credit Card Review 2022: Pros, Cons & Overview

GOBanking Rates Score

Quick take: The Ikea Visa credit card offers great benefits to loyal customers who make frequent purchases from the furniture retailer. Cardholders get $25 off their first Ikea purchase if it’s $25 or more, plus 5% off all Ikea purchases in-store and online. It also offers 3% cashback on dining, grocery, and utility purchases and 1% cashback on all other purchases. Cardholders also earn a $25 bonus when they spend $500 or more on qualifying purchases within the first 90 days.

  • Earn rewards
  • Redeem rewards
  • Interest and fees
  • Customer service

How did we calculate this?

Advantages

  • 5% off all Ikea purchases
  • 3% cashback on dining, grocery and utility purchases
  • No limit to rewards
  • Quality customer service
  • No annual fee

The inconvenients

  • Statement credits are the only way to redeem rewards, allowed in $15 increments
  • The purchase APR is 21.99%, which makes it less competitive than other cards
  • No introductory APR
  • Rewards are only valid for 90 days

Introducing the Ikea Visa credit card

The Ikea Visa credit card is a great option for those who regularly buy furniture and home goods from this retailer. Loyal Ikea customers are rewarded with 5% off Ikea purchases in-store and online. This same 5% reward increase applies if customers use the Ikea Visa credit card to pay for Traemand installation services or TaskRabbit assembly services.

Cardholders also earn rewards if they use the card outside of the retailer, earning 3% on dining, grocery and utility purchases, and 1% on all other purchases. These rewards can only be redeemed in $15 increments on billing statements and are only valid for 90 days.

With a purchase APR of 21.99%, the interest rate of the Ikea Visa credit card is relatively high compared to other credit cards. This card is a perfect choice for Ikea lovers who don’t have a monthly credit card balance.

Features of the Ikea Visa credit card

Here is an overview of some of the features offered by the Ikea Visa credit card.

Earn rewards

Ikea followers who use this card to purchase items from the retailer get 5% back on those purchases, which equates to at least $500 back for those who spend $10,000 or more per year . In addition to this loyalty benefit, cardholders are also rewarded for spending on dining, groceries, and utilities, earning 3% back in those categories and 1% back on all other purchases.

New cardholders can also take advantage of unique bonuses, such as withdrawing $25 on their first Ikea purchase of $25 or more and getting an additional $25 bonus when they spend $500 within the first 90 days of account ownership. .

Redeem rewards

Cardholders don’t have many options for redeeming the rewards they earn. They can only redeem rewards via billing statement credits in $15 increments, unlike other cash rewards cards which offer direct deposits and mailed checks. Also, Ikea Visa credit card rewards are only valid for 90 days. This means cardholders only have a few months to redeem their rewards or risk losing them.

Interest and fees

The Ikea credit card has a relatively competitive fee schedule. Compared to other cash back cards, however, the interest charged by the Ikea Visa credit card is high. Here’s an overview of the card’s rates and fees.

Type of fee or interest rate amount charged
Purchase APR 21.99%
APR balance transfer 26.99%
APR cash advances 23.99%
Balance Transfer Fee $10 or 5%, whichever is greater
Cash advance fees $10 or 5%, whichever is greater
Annual fees $0
Late payment Up to $41
Payment returned Up to $41

Customer service

A credit issuer for more than 30 years, Comenity Capital Bank – part of Bread Financial – manages the Ikea Visa credit card. Cardholders can contact its highly trained customer service team by sending a secure message on the Comenity website, calling the customer service line, or sending a letter.

Comenity offers live customer support 24 hours a day, seven days a week, but this availability may vary during the holidays.

Comparable cash back credit card options

The Ikea credit card is an attractive option for someone who regularly shop at the retailer. Those who don’t buy from Ikea a lot might want to consider one of the following boards instead.

Chase unlimited freedom

Chase Freedom Unlimited cardholders earn 5% cash back on travel purchases made through Chase Ultimate Rewards, 3% back on restaurant and drug store purchases, and 1.5% back on all other purchases . New cardholders can also earn a $200 bonus when they spend $500 within the first three months of account opening and 5% cash back on up to $6,000 in purchases. gas station in the first year.

With Chase Freedom Unlimited, cardholders pay no interest for the first 15 months on purchases or balance transfers. After that, the card has a variable purchase APR which varies between 14.99% and 23.74%. It also has a reasonable fee schedule and no annual fees.

Bank of America Unlimited Cash Rewards

Those with the Bank of America Unlimited Cash Rewards credit card earn 1.5% cash back on all purchases. This card does not limit the rewards cardholders can earn. Those who open a new account can earn an additional $200 cash back if they spend $1,000 within the first 90 days of card ownership.

This Bank of America credit card has a promotional interest rate of 0% on purchases for the first 15 months. Once the promotional period expires, a variable APR between 14.24% and 24.24% comes into play.

The Ikea Visa credit card: a great choice for the merchant’s loyal customers

The Ikea Visa credit card is best suited for shoppers who regularly buy home furniture and other items from this retailer. For any Ikea loyalist, this card is a great way to earn rewards at a high cashback rate for those purchases. Those who have this card should pay it off monthly to avoid high interest charges.

Ikea credit card FAQ

Here are some of the most frequently asked questions about credit cards from Ikea.

  • Is the Ikea Family card a credit card?
    • The Ikea Family card is intended for use with the retailer’s rewards program and is not an Ikea credit card. Those with an Ikea credit card are automatically signed up for an Ikea Family membership, which includes free hot drinks and exclusive discounts, among other perks.
  • Which bank handles Ikea credit cards?
    • Comenity Capital Bank manages the Ikea Visa credit card as well as its Project credit card.
  • Where can I use my Ikea Visa credit card?
    • Cardholders can use the Ikea Visa card wherever Visa is accepted.

Information is accurate as of April 6, 2022.

Editorial Note: This content is not provided by Comenity Capital Bank. Any opinions, analyses, criticisms, evaluations or recommendations expressed in this article are those of the author alone and have not been reviewed, endorsed or otherwise endorsed by Comenity Capital Bank.

Editorial Note: This content is neither supplied nor commissioned by the banking advertiser. The opinions expressed herein are those of the author alone, not those of the Bank Advertiser, and have not been reviewed, endorsed or otherwise endorsed by the Bank Advertiser. This site can be remunerated via the affiliate program of bank advertisers.

Is this your bank?


Thank you for signing up!

Prepare to receive the best financial advice from the experts at GOBankingRates.

Take advantage of our best offers


About Kristina McManus

Check Also

Financial intelligence agency sheds light on criminal risks of underground banking

Canada’s Financial Intelligence Agency warns that money-transfer services are ripe for abuse by criminals who …