If you live in the United States, there's a good chance you live near a Kohl's department store. The company has more than 1,100 locations in 49 states (sorry, Hawaii). Kohl's stores are best known for clothing, shoes and accessories, but they also have a robust offering of housewares, gifts and other products.
The retailer's co-branded credit card with Capital One — the Kohl's Card — can be a decent choice for frequent customers looking to save some money. But getting maximum value out of the card can be complicated because you'll have to keep track of a variety of sales, promotions and discounts. And your rewards expire quicker than you can say “shop till you drop,” in just one month.
Here are five things to know about the Kohl’s Card.
1. There are two versions
Even though the card formerly was called the Kohl’s Charge, it’s a store credit card, not a charge card. Credit cards let you carry a balance from month to month and apply interest to unpaid balances, while charge cards require you to pay in full each month.
The $0-annual-fee Kohl's Card comes in two flavors: One is a "closed-loop" version, meaning you can use it only at Kohl's and earn rewards on store-related purchases. The other is a Visa version of the card that can be used essentially anywhere. That version earns rewards with the retailer and on everyday purchases. When you apply, you’re considered for both versions of the card, and approval will be based on eligibility.
2. You get rewards and other discounts — but it's a lot to track
Some store credit cards, such as the Target Circle™ Credit Card, offer cardholders a simple, straightforward discount on every purchase. The Kohl's Card is different. Instead of knocking off 5% or so at checkout, it gives a percentage back in its loyalty currency, Kohl’s Cash, which can be used on future Kohl's purchases. Card benefits are intertwined with the department store’s regular promotions and sales. Here are the main components.
Kohl’s Rewards
Independent of (but related to) the Kohl's credit card is Kohl’s loyalty program, called Kohl's Rewards. Regular members earn 5% back on purchases in the form of Kohl’s Cash, which is issued in $5 increments on the first of the following month. But that rate is boosted if you also have a Kohl's credit card:
- With the closed-loop (store-only) Kohl’s Card, you instead get 7.5% back in the form of Kohl’s Cash, a nice bump from the regular rate.
- With the open-loop (Visa) version, you’ll get that same rate at Kohl's, but you'll also earn 3% back in Kohl's Cash on gas, 2% back at grocery stores, and 1% back on all other purchases.
Note, however, that Kohl’s Cash earned from purchases expires in 30 days, a short expiration period that dampens the value of those rewards. Also, there are some exclusions to keep in mind: Kohl's Cash can’t be earned on, or redeemed for, Kohl's gift cards, nor can you redeem it for Kohl's Cares products or Sephora at Kohl’s purchases.
For fewer restrictions — and for comparable effective rewards rates on Kohl's purchases — consider a general rewards credit card instead. For instance, you could earn 5% back on Kohl's purchases as a loyalty member and 2% cash back on all eligible expenses (including Kohl’s purchases) with the $0-annual-fee Wells Fargo Active Cash® Card. Rewards earned with that card don’t expire as long as your account is open, plus you'll have a variety of redemption options. There's also a rich welcome offer: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
Kohl's coupons
Holders of the Kohl's card periodically receive monthly exclusive discounts either in the mail or in their electronic Kohl’s Wallet, available in the Kohl’s mobile app. The Kohl’s Wallet keeps track of your various offers and coupons, so you don’t have to worry about physical coupons. However, there's a slew of brand and product-category exceptions that coupons can’t be used on.
Introductory discounts
When you open a new Kohl’s Card, you may qualify for one-time savings off the first purchase on your new card. As of this writing, the current incentive is an extra 40% off a purchase within 30 days of approval for the card, but as with any introductory offer, that's subject to change.
Kohl's frequently runs promotions in which shoppers (cardholders or not) get a $10 Kohl's Cash coupon for every $50 they spend. These coupons are doled out at the time of purchase, but they can be used only during specified dates. This way, shoppers have to come back to the store rather than spend the money right away. These discounts can stack with (be added to) discounts exclusive to cardholders.
3. Bigger spenders can earn status
When you spend $600 at Kohl's with your Kohl’s Card in a calendar year, you’ll earn Most Valued Customer (MVC) status, which entitles you to additional savings and offers throughout the year. You’ll also get exclusive free shipping periodically, which you can stack with your other Kohl’s offers and cash.
4. You probably won't want to carry a balance
The Kohl’s Card may feature promotional financing opportunities throughout the year, and unlike with other store credit cards, these aren't sneaky deferred interest offers that can end up costing you dearly in the end. But the card's normal ongoing annual percentage rate is hefty — as of this writing, it was above 30% for both versions of the card.
Avoid carrying a balance on your Kohl's credit card unless you get a no-interest promotional offer, and even then, charge only what you can afford to pay off during that time.
5. See whether you're preapproved without a hard inquiry
If you’re interested in a Kohl’s Card but worried that you may not qualify, you can check before applying without penalty. Visit the Kohl’s Card section on the website and look for the preapproval link. Enter your name, address, Social Security number and date of birth, and you’ll instantly see whether you’re preapproved, without a hard pull on your credit report.
(If you end up officially applying, however, a hard inquiry will be performed at that time, which may temporarily ding your credit scores.)
