5 Things to Know About the Ikea Visa Credit Card

You'll get 5% back in rewards on all Ikea purchases, among other perks, but rewards expire relatively quickly.

Robin Saks FrankelJune 17, 2020
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5 Things to Know About the Ikea Visa Credit Card

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The $0-annual-fee IKEA® Visa® Credit Card, issued by Comenity, features robust rewards for Ikea purchases. But unlike some store cards, its rewards certificates expire relatively quickly once issued. That makes it difficult for casual once-in-a-while Ikea shoppers to get the full value out of their rewards.

The card's top-notch uncapped rewards make it a great deal for a certain group, though: frequent Ikea shoppers who spend a lot at the furniture store.

Here's what to know about the IKEA® Visa® Credit Card.

1. It's easy to rack up rewards...

If you've got big plans to furnish your abode, and they almost all involve Ikea, you can stockpile rewards faster than you can pronounce “fjälla.”

Cardholders will earn:

  • 5% back in rewards per dollar spent on all Ikea purchases, including Traemand kitchen installation and at-home assembly services from TaskRabbit, which Ikea bought in 2017.

  • 3% back in rewards per dollar spent on dining, grocery and utility purchases.

  • 1% back in rewards per dollar spent on all other purchases made with the card.

The IKEA® Visa® Credit Card also comes with a modest sign-up offer: Get a Bonus $25 IKEA Reward Certificate when you make $500 in qualifying purchases outside of IKEA, Traemand and TaskRabbit within the first 90 days of account opening with your IKEA Visa credit card.

2. ...But reward certificates expire quickly

Ikea "Reward Dollars" are automatically redeemed for Ikea Reward Certificates in $15 increments. Every 15 Reward Dollars you earn, you'll get a $15 Ikea Reward Certificate, redeemable at U.S. Ikea stores or the U.S. version of the company website. But when you get a certificate, you'll have to use it fast; they expire just 45 days from the date they are issued, and the Reward Dollars you accumulate to earn those certificates expire 36 months after the date that they are posted to your balance.

The automation factor sounds simple, but it's also inflexible. If you have, say, $28 worth of rewards, you'll get only $15 of that sent to you, and you'll have to wait to get the rest until you hit the $15 threshold again. And if you wait too long, those remaining rewards could expire, causing you to miss out on that other $13 completely.

3. It has no annual fee and no spending caps

Like most store cards, the IKEA® Visa® Credit Card comes with an annual fee of $0. So while the rewards program could be improved, it's nevertheless easy to minimize costs and come out ahead on rewards with this card.

Unlike other no-annual-fee cash-back cards that offer bonus rewards at furniture stores, it also doesn't limit how many bonus rewards you can earn. Consider these options, for instance:

  • Bank of America® Cash Rewards credit card: This $0-annual-fee card lets you choose your own 3% cash back category — home improvement and furnishings, which includes Ikea purchases, is one option — and cash rewards never expire. You'll also get 2% cash back at grocery stores and wholesale clubs and 1% back on all other purchases. But you can only earn bonus rewards on the first $2,500 spent each quarter on combined category choice/wholesale club/ grocery store purchases.

  • U.S. Bank Cash+™ Visa Signature® Card: This $0-annual-fee card offers 5% cash back on two categories you choose — “furniture stores,” which includes Ikea, is an option — and 2% cash back on a category chosen from a separate list. But the 5% cash back rate only applies to the first $2,000 spent in combined eligible net purchases each quarter. You'll earn 1% cash back on all other purchases. Cash rewards expire 36 months after the billing cycle in which they are earned.

These general cards are strong options if you spend modestly at Ikea. But if you spend thousands each quarter, easily blowing through these spending caps, the IKEA® Visa® Credit Card could be your best bet since it doesn't limit how many bonus rewards you can earn.

4. It lacks a 0% intro APR period

If you're considering the IKEA® Visa® Credit Card, don't forget to look at the big picture. Although the card offers rich rewards to those who plan to spend a lot on Ikea merch, it also comes with a high APR. It might be more useful to get a card with a chunk of interest-free time to pay off that new kitchen, living room or other big project.

5. It's not the only co-branded Ikea card available

If you are indeed seeking some breathing room on your Ikea haul, there is another in-house option to consider. Its sibling card, the IKEA® Projekt Credit Card, comes with the following offers:

  • 0% APR for 6 months on a purchase of $500 or more; or

  • 0% APR for 12 months on a purchase of $1,500 or more; or

  • 0% APR for 24 months on a purchase of $5,000 or more.

Be aware that if you haven't paid that purchase off in full within the promotional period, you'll be charged the standard ongoing interest rate on the remaining balance.

Also, the IKEA® Projekt Credit Card is a store card, which means you can't use it outside of Ikea purchases. And unlike the IKEA® Visa® Credit Card, it doesn't earn rewards.

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