The Sears Credit Card has some fairly lackluster rewards. Most department store credit cards give extra rewards when you spend in-store: 5% back, usually, and 1% elsewhere. The Sears cards? Nada. No 1% rewards on all other purchases. You don’t even earn rewards on all Sears purchases. It’s an unnecessary hit to your credit score if you’ve got bad or average credit, and a waste of time if you don’t.
The rewards program that wasn’t
If you have the regular Sears credit card, you get “exciting offers” every month: right now, no interest on a variety of big-ticket home and garden items if you pay in full within 12-24 months. The last deal is an (expired) offer for 5% off all appliances and 12 months with no interest. That’s about it.
If you have the Sears MasterCard, you’ll also earn rewards on “eligible purchases,” which can be redeemed for gift cards to Sears, Kmart and some restaurants, or online purchases. There’s little information, though, on exactly what purchases qualify and how many points they’ll earn. On top of that, you don’t earn any rewards on other purchases.
The cards advertise a free credit score check. However, because of the FACT Act of 2003, you’re already entitled to one free (and comprehensive) credit report every year, from AnnualCreditReport.com, which will tell you most of what you need to know. If you’re willing to do some fancy footwork, you can find your credit score as well, at no charge. Sears is selling what’s already free.
Sears cards give few rewards but charge high interest
The Sears credit card – different from the Sears MasterCard – can only be used at Sears and its affiliates (Kmart, Orchard Supply, Land’s End and a few others), as well as Avis, and can be used to pay monthly provider fees to AOL. It’s got an incredibly limited scope, which calls into question why you’d submit yourself to the credit inquiry (which dings your credit score) and high APR to get this card. The interest rate is 25.24%, which is well above the industry average for bad credit and even tops the average for cash advances. The MasterCard is accepted everywhere, but its terms are not considerably better (and are very well hidden). Complaints about interest rates as high as 25% have surfaced.
The better cards: earn up to 5% cash back
Discover More: The Discover More actually gives out rewards. It pays out 0.25% for the first $3,000 spent annually on every purchase you make, and 1% after the threshold. It also gives 5% back (regardless of how much you’ve spent) on bonus categories that rotate quarterly, up to caps that range from $200-$800 in purchases. You do, however, have to enroll in the rewards program anew every quarter. In terms of interest rates as well as rewards, the Discover More blows the Sears cards out of the water. It offers 0% interest on purchases and balance transfers for 15 months. The ongoing APR is between 11.99% and 20.99%, which can be less than half of Sears’. The ShopDiscover online mall, where you can spend your rewards, pays an additional cashback bonus. On top of the 1% back, you could get 5% back from Land’s End, rather than Sears’ ambiguous “eligible purchases” rewards on the same store.
Chase Freedom: The Chase Freedom gives out $150 cash back if you spend $500 in the first three months. This should be fairly easy since the Freedom also gives 0% interest for the first 6 months on purchases and 12 months on balance transfers. It has the same 1%-base-and-5%-rotating-bonus system as the Discover More, without the spending threshold. It pays out in Chase Ultimate Rewards points, which you can redeem at the Ultimate Rewards mall for additional discounts. As a comparison, Chase pays out 4% on Land’s End. In addition, if you really want to get your credit score (and don’t go the free route), you get an additional 10% off Equifax.