Ikea is a staple for affordable, ready-to-assemble furniture with a modern look. Selling furniture, kitchen appliances, and other home goods make Ikea a must-see store for new homeowners. Unfortunately, even affordable pieces are somewhat expensive. The idea of an Ikea credit card might seem appealing, but is it the right credit card for you?
Table of contents
Features and Benefits
The Ikea Visa credit card is a typical Visa card, meaning you can use it anywhere Visa is accepted, a benefit over the store card option. You can earn 5% back on Ikea and affiliate services, like TaskRabbit assembly and Traemand installation. Other perks include 3% back on grocery, utility, and dining purchases as well as 1% back on everything else. The one drawback to these benefits is they only come in the form of an Ikea Reward Certificate. The certificates are automatically issued in $15 increments and come out once per month. You must use the certificates within 45 days, or you lose the reward.
While the reward can be seen as a negative and a positive, the card has no annual fee and provides $25 off your initial purchase. You also earn a $25 certificate when you spend $500 outside of the Ikea family within the first 90 days.
Who Would Use the Ikea Credit Card?
The Visa card is a decent card for making minor purchases that you can afford to pay off before the end of a billing cycle. The Visa card option has a relatively high APR, meaning that you do not want to roll balances over. If you are looking for a financing option for large furniture purchases with balances you intend to carry for several months, you might want to consider the Ikea Projekt card, currently offering 0% interests over six months on purchases of $500 or more, 12 months after spending $1,500 or more, and 24 months with purchases over $5,000.
When Should You Use the Ikea Credit Card?
If you get an Ikea Visa credit card, you will want to keep purchases relatively low. With a high APR, you can quickly get into financial trouble by carrying balances over several months. Instead, make small purchases that fit into your monthly budget, using the card as an advance for the cash. Buy grocery items, food, or other preplanned budgetary expenses.
Ikea Credit Cardholders earn the following rewards:
- 5% back on every dollar spent on Ikea purchases and TaskRabbit assembly or Traemand kitchen installation services
- 3% back on every dollar spent on utility bills, restaurant dining and grocery store purchases
- 1% back on every dollar spent on all other purchases
To get a $15 reward, the cardholder needs to spend $500 in grocery, utility or dining purchases; $300 at IKEA, TaskRabbit or Traemand; or make $1,500 in purchases at other merchants.
The Ikea Rewards Dollars program is the source of all the perks. There is no cap to the amount of Ikea Reward Dollars a cardholder can earn; however, unused Reward Dollars expire 36 months after they are credited to your account. These rewards are only valid for Ikea purchases and are automatically issued in $15 increments in the form of a certificate on the cardholder’s monthly statement. Those who select paperless statements need to remember to check their online accounts regularly for these rewards. It is best to use reward certificates in an Ikea store due to the shipping fees attached to online purchases, which may be higher than your rewards.
However as the certificates are only valid for 45 days the more casual Ikea shopper may not get to use them. Another obstacle is if you have $28 in your Rewards Dollars account, you only receive one $15 certificate. The other $13 will remain until you spend enough to qualify for another $15 certificate.
Examples of Use
While it might seem like Ikea is not the place for making small purchases, there are several items you can buy below $100. Here are just a few examples:
- Side table
- Home goods
Steps for Securing an Ikea Credit Card
You can apply for the Ikea credit card either in-store or online. However, before you go to the store, be aware of the following steps:
- Have financial and personal data ready
- Read the terms and conditions
- Carefully fill in the application
- Submit the form
While store credit cards typically require a lower credit score than a standard card, the Ikea Visa card requires a good score, at least 670. However, for the best chances of approval, you should aim for the upper limits of the good category, bordering excellent.
The Ikea Visa card is issued by Comenity Capital Bank. This bank also issues credit cards for many other stores and businesses. While past dealings with the bank could affect your application, it is best to focus on your credit score.
While annual membership fees are becoming increasingly popular, the Ikea Visa card does not have one. The card also has several perks for frequent Ikea shoppers.
The Ikea Visa card is a decent card for those interested in shopping at Ikea, but with the high APR and limited features outside of Ikea, an unattached card might be better. If you want information on other opportunities, check out our round-up of the Best 0% Interest Credit Cards