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.

IKEA Visa card

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.

Author

Kyle Burbank

Kyle is a freelance writer and author whose first book, "The E-Ticket Life" is now available on Amazon. In addition to his weekly "Money at 30" column on Dyer News, he is also the editorial director and a writer for the Disney fan site LaughingPlace.com and the founder of Money@30.com.

Other Articles by Kyle Burbank

Starbucks for Life logo

The Starbucks For Life Game is Back - How to Get Free Plays

Folks, it is time for yet another Starbucks promotional game. From now through December 31st, customers have a chance to win Starbucks for life via the game called, uh, Starbucks For Life. And, like other Starbucks promotions in this vein (such as the Summer Game or Bingo), you don't actually...
illustration of how to donate travel rewards to charities

Travel Tuesday: Donating Your Travel Currency on Giving Tuesday

Lest you think we're done with the retail holidays, today marks another — albeit quite different — one: Giving Tuesday. For those unaware, this is the day that emphasizes charitable donations over retail purchases. Incidentally, while travelers and credit card customers may earn various loyalty points and miles from their...
Black Friday Sale

Black Friday Deals 2023: Offers on Products I’ve Reviewed

Well, it’s Black Friday once again. And while I've had some harsh words about this "holiday" in the past, I've learned to embrace the online component of if as I tend to be able to score a discount on items I was planning to buy anyway. On that note, I've...
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get Posts in Your Inbox
Featured Articles
Starbucks for Life logo

The Starbucks For Life Game is Back - How to Get Free Plays

Folks, it is time for yet another Starbucks promotional game. From now through December 31st, customers have a chance to win Starbucks for life via the game called, uh, Starbucks For Life. And, like other Starbucks promotions in this vein (such as the Summer Game or Bingo), you don't actually...
illustration of how to donate travel rewards to charities

Travel Tuesday: Donating Your Travel Currency on Giving Tuesday

Lest you think we're done with the retail holidays, today marks another — albeit quite different — one: Giving Tuesday. For those unaware, this is the day that emphasizes charitable donations over retail purchases. Incidentally, while travelers and credit card customers may earn various loyalty points and miles from their...
Black Friday Sale

Black Friday Deals 2023: Offers on Products I’ve Reviewed

Well, it’s Black Friday once again. And while I've had some harsh words about this "holiday" in the past, I've learned to embrace the online component of if as I tend to be able to score a discount on items I was planning to buy anyway. On that note, I've...
Sleeper Holder features

Travel Tuesday: Sleeper Hold Travel Pillow Review

Earlier this year, I shared how I had contributed to a Kickstarter campaign for a new travel product. Well, just a couple of months later, that item arrived at my door: the Sleeper Hold travel pillow. As luck would have it, soon after the pillow's arrival, I ended up taking...