Full Review of the IKEA Visa Credit Card
Most rewarding when you shop with IKEA
Automatic enrollment in IKEA Family membership program
Earn rewards anywhere Visa is accepted
Rewards can only be redeemed as billing statement credit
Above-average APR for purchases and balance transfers
No traditional one-time offer
- Most Rewarding When You Shop with IKEA: This card offers a generous 5% back when you shop IKEA stores or online. You can also get 5% back when you use your card to pay for Traemand or TaskRabbit installation and assembly services in case you don't have the time or energy to put together your IKEA purchases yourself. That's a decent rewards rate that you won't always find with other retail co-brand or closed loop store credit cards.
- Automatic Enrollment in IKEA Family Membership Program: New cardmembers are automatically enrolled in IKEA Family, which yields a few benefits of its own. With IKEA Family, you have access to exclusive discounts on selected items, workshops and events, and free hot drinks every time you visit an IKEA store. You can also join IKEA Family without the card, although you’ll need to enroll separately.
- Earn Rewards Anywhere Visa Is Accepted: Unlike some closed loop store rewards credit cards, the IKEA Visa gives you a chance to earn a percentage of what you spend back anywhere Visa is accepted. That means you can get rewarded whether you're buying groceries, shopping at your favorite department store, or using your card to book a trip. Closed loop retail store cards limit you to spending and earning rewards at just their own stores.
- Rewards Can Only Be Redeemed as Billing Statement Credit: With a standard rewards card you might be able to redeem rewards for statement credit, cash back, gift cards, travel, or other options. The IKEA Visa credit card redeems rewards automatically as a credit against your billing statement. Rewards are redeemed in $15 increments.
- Above-Average APR for Purchases and Balance Transfers: This card's APR for purchases and balance transfers makes it a little less appealing if you plan to carry a balance. There's no introductory APR for either one, so you'll be paying the regular variable rate from the time you open your account.
- No Traditional One-Time Offer: The IKEA Visa credit card does come with a one-time offer but not the kind you'd expect with a typical cash back credit card. Instead of getting several hundred dollars in cash back for meeting a minimum spending requirement, you'll earn rewards that can be applied toward IKEA purchases.
This Card is Best For
Seeks to maximize cash back earnings across spending categories
Dines out regularly while traveling or in home city
Primarily responsible for household grocery and other major purchases
This card could be good for anyone who spends a decent amount of money on furniture, home decor, or home improvement or happens to be an IKEA brand enthusiast. The rewards structure also gives you the flexibility of earning money back on everyday spending.
Additionally, this card can be rewarding if you rely on TaskRabbit or Traemand for furniture installation and assembly. You can earn 5% back on those expenses, more than you’d be likely to get with a traditional cash back rewards card.
IKEA Visa Credit Card One-Time Offer
As mentioned, this card doesn't come with the typical one-time offer. Instead, you can get $25 off your first IKEA purchase. That's not exactly a stellar bonus compared with what you might get from a regular cash back rewards card. But it's similar to the kind of first purchase discounts or incentives you'll find with other retail co-brand credit cards.
Rewards Earning Details
You have three ways to earn rewards with the IKEA Visa credit card:
- Earn 5% back at IKEA, Traemand, and TaskRabbit
- Earn 3% back on dining, groceries, and utility purchases
- Earn 1% back on all other purchases
There's no limit on rewards, so the more you spend, the more you can earn back. And since this card can be used anywhere Visa is accepted, you have the flexibility of using it to earn rewards on just about every purchase.
Rewards Redemption Details
Redeeming rewards you’ve earned with the IKEA Visa credit card is easy. Rewards are automatically applied as a billing statement credit in $15 increments. Those rewards are valid for 45 days after they're applied. That means to use them, you'd need to make new purchases on your card.
How to Maximize Your Rewards
Maximizing your rewards depends on how much you spend and where you make purchases with your card. Here are two examples of how you can maximize rewards with this card.
Suppose that you spend $5,000 a year on home improvement and furniture. You could get $250 back on those purchases. Add in $10,000 in groceries, dining, and utilities and $5,000 in other everyday spending and you'd earn another $300 and $50 back respectively. Altogether, you'd earn $600 in rewards on $20,000 in purchases.
Now, say you have some major home remodeling projects lined up and you're planning to spend $20,000 at IKEA for the year. You also spend $10,000 in dining, groceries and utilities, plus another $5,000 in everyday spending. At that rate, you'd earn $1,000 + $300 + $50, for a total of $1,350 back on $35,000 in purchases.
The IKEA Visa credit card includes these standard benefits:
- Emergency card replacement
- Auto rental protection
This card is issued by Comenity Bank, which isn’t ranked in J.D. Power's 2019 U.S. Credit Card Satisfaction Study.
You can manage your account online or with a mobile device. Customer service is available by calling 866-387-6145.
This is a chip-enabled credit card, and your online information is encrypted for added protection. If you have concerns about identity theft or fraud, you get answers by phone or through secure messaging. You can easily report lost or stolen cards, and you're covered by a $0 liability fraud guarantee.
Fees to Watch Out For
It's not so much the fees you need to be aware of with this card as the APR for purchases, balance transfers, and cash advances. Like other retail credit cards, the IKEA Visa has an above-average APR for all three, potentially making it more expensive to carry a balance month to month.
The IKEA Visa credit card could be a good fit for DIY-ers and people who love to shop IKEA for their home. This card is also appealing for earning a solid percentage back on dining, groceries, and utilities if you typically charge those purchases. Plus, it has no annual fee.
This card may be less attractive if you're not an IKEA regular or don't have a big home improvement project in the works. You also may want to look elsewhere if you'd prefer a card with more flexible redemption options or a more generous one-time offer. A traditional cash back rewards card might be a better choice for meeting those needs.