If you can’t get enough of having affordable basics in your wardrobe, the $0-annual-fee Old Navy Encore Mastercard® might be worth a look — but there are some pitfalls to be aware of.
There are two versions of the Barclays-issued card: an "open-loop" Mastercard version that can be used essentially anywhere, and a store version that can be used only with the brand.
Both versions are a part of the family of co-branded cards from Gap Inc. In addition to Gap and Old Navy, that umbrella of clothing retailers also includes Banana Republic and Athleta.
The Old Navy Encore Mastercard® offers rewards and perks for loyalists of these brands, but as is often the case with co-branded retail cards, those rewards are inflexible and not as valuable as you might hope.
Here's what to know.
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1. You’ll earn rewards on most apparel purchases ...
The Old Navy Encore Mastercard® earns rewards as points within the retailer's "Encore" customer loyalty program. As a cardholder, you'll be automatically enrolled at the program's highest tier, known as "All-Access." At that level, you'll earn the following rewards with the card:
- 25 points per $1 spent at Old Navy and other Gap Inc. brands.
- 15 points per $1 spent at other retail apparel brands. Purchases made at wholesale clubs, Amazon, Target and Walmart are ineligible.
- 5 points per $1 spent on all other purchases. (This rate jumps to 10 points per $1 if you receive a Mastercard World or World Elite version of the Old Navy credit card.)
The store-only version earns 25 points per $1 spent on Gap Inc. brands, in-store and online.
To redeem your rewards, you'll need to have earned a minimum of 500 points, which equals $1 in value.
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When you apply for an Old Navy credit card, you'll first be considered for the Mastercard version. If you're not approved for that version, you'll be considered for the store-only version. 2. ... But redemption is limited to more Gap Inc. purchases
The rewards you earn with the Old Navy Encore Mastercard® aren't the most flexible; they can only be applied toward future store purchases at the Gap Inc. brands, and toward items and experiences from the Encore Market, a brand marketplace that offers exclusive products and experiences.
Perhaps an even bigger bummer: Points earned with the Old Navy Encore Mastercard® are worth just 0.2 cent each — nowhere near the industry standard of a penny per point — and they expire after 12 months of account inactivity.
Most cash-back credit cards earn rewards that are far more valuable and flexible. For instance, you can get more value at Old Navy and everywhere else with the Wells Fargo Active Cash® Card. It earns 2% cash back on all qualifying purchases. Cash back can be redeemed for a statement credit, direct deposit into a Wells Fargo checking or savings account, gift cards and more.
3. The welcome offer is measly
The Old Navy Encore Mastercard® has a welcome bonus in the form of a first-purchase discount for new applicants. New cardholders can get 30% off an initial Old Navy purchase with the card. (The discount expires 14 days after account opening.)
This means that if you spend $200 at Old Navy, the 30% discount would give you $60 in savings. In the moment, that may sound good.
But in comparison, the welcome offer on the aforementioned Wells Fargo Active Cash® Card is much more generous, if you're able to hit the spending threshold without going over budget (and you don't mind waiting a little longer to collect the bonus): Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
4. It does offer a few extra perks
Being an Old Navy Encore Mastercard® holder entitles you to some shopping-related perks, including free standard shipping on orders of $35+, a 20% off sale-day of your choice, and an extended 60-day return window.
5. The high APR can be costly
The Old Navy Encore Mastercard® doesn’t have an introductory interest-free period. At the time of this writing, the APR was in excess of 33%, which is high even for a rewards credit card.
If you aren't paying off your card every month, you could rack up some hefty charges, which would easily erase the value of any rewards you might have earned.
