What You Need to Know About IKEA’s New Credit Card
This week, the famed Swedish furniture manufacturer IKEA debuted their new IKEA Visa card offering. Unlike most store credit cards, IKEA’s partnership with Visa means you are able to use this particular card anywhere, allowing you to earn more rewards. Additionally, the card carries a potentially lucrative initial bonus offer that might grab your attention. However, before you get too excited, just be aware that there’s a catch.
Let’s start with what’s attractive about the new IKEA Visa. First, it offers 5% back on all IKEA purchases (including TaskRabbit assembly services), 3% back on dining, grocery, and utilities, as well as 1% back everywhere else. Admittedly, those rates are pretty strong and the 3% category in particular has a unique collection of offers. Better yet, the card carries no annual fee — which I believe should be a prerequisite for any store-branded credit card.
So what’s the catch? Well, unlike some branded cards like the Uber Visa, IKEA’s new card only allows you to redeem rewards at an IKEA location. More specifically, their site notes that reward certificates will be issued in $15 increments and be included with billing statements.
That said, I did mention that the initial bonus offer on this card was intriguing — and it is — although it’s unclear if it will stay that way. Currently, those who sign up for the IKEA Visa will receive $25 off of their purchase on the same day. Additionally, when you spend more than $500 outside of IKEA or TaskRabbit in your first three months, you’ll earn another $25 reward certificate. That may sound pretty lackluster, but the star feature is the free standard shipping delivery on in-store IKEA purchases you’ll earn for a limited time. This part of the offer is only valid through 8/31/18 but it does sound like you can utilize it multiple times until then. Of course there are some delivery area limitations that apply but, if you’re furnishing a new home or refreshing your current home, this could save you a ton in fees (not to mention the backaches from trying to carry everything yourself). Like I mentioned though, it’s unclear if this offer will be extended or evolve in the future.
Is the IKEA Visa Card Worth Having?
Ultimately, if you’re in the market for some new furniture, this IKEA Visa card could help you save a bundle. Unfortunately it also seems like the type of store credit card that’s only good for a short time and will just sit idle on your credit report afterward (until it’s eventually canceled, potentially dinging your scores). After all, while 3% back on dining, groceries, and utilities is nice, how many coffee tables or bookshelves does one person need? Then again, I’d be remiss if I didn’t mention all the non-furniture goods that IKEA also stocks, ranging from pots and pans to art and decorations. Still, unless you’re a frequent IKEA shopper and enthusiast, this Visa offering that the retailer has assembled is not quite the high-quality card it may seem to be at first glance.