Credit Cards Credit Card Reviews

The IKEA Visa Credit Card Review

overall rating
3.3

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The IKEA Visa credit card allows you to earn back a percentage of what you spend at IKEA and on everyday purchases, with no annual fee.

The IKEA® Visa® credit card

overall rating
3.3
The IKEA® Visa® credit card
On Comenity Bank's Secured Site.
Recommended Credit Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application.
350 579
580 669
670 739
740 799
800 850
Poor - Excellent
Regular APR (%) 21.99% variable
Annual Fee $0
Rewards Earning Rate 5% back in rewards on IKEA® purchases, 3% back in rewards on dining, grocery and utility purchases, 1% back in rewards on all other purchases.
Balance Transfer Fee Either $10 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee (%) 0%
how this card stacks up
When compared among all rewards cards in our database:
Rewards
Benefits
Low Fees
Security/Customer Experience
Low Interest
worst best

The Ikea Visa Card is not one of our top-rated cash back credit cards. You can review our list of the best cash back credit cards for what we think are better options.

Full Review of the IKEA Visa Credit Card

Pros
  • Most rewarding when you shop with IKEA

  • Automatic enrollment in IKEA Family membership program

  • Earn rewards anywhere Visa is accepted

Cons
  • Rewards can only be redeemed as billing statement credit

  • Above-average APR for purchases and balance transfers

  • No traditional one-time offer

Pros Explained

  • 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. 

Cons Explained

  • 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

  • Avatar for Cash Back Strategist Persona
    Seeks to maximize cash back earnings across spending categories
    Cash Back Strategist
  • Avatar for Frequent Diner Persona
    Dines out regularly while traveling or in home city
    Frequent Diner
  • Avatar for Head of Household Persona
    Primarily responsible for household grocery and other major purchases
    Head of Household

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. 

Average Case

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. 

Aspirational Case

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. 

Standard Benefits

The IKEA Visa credit card includes these standard benefits: 

  • Emergency card replacement
  • Auto rental protection

Cardholder Experience

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. 

Security Features

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. 

Our Verdict

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.

Apply Now
For The IKEA® Visa® credit card
on Comenity Bank's Secured Site.
Compare This Card
See how this card compares to similar cards
CURRENT CARD
The IKEA® Visa® credit card
overall rating
3.3
Recommended Credit Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application.
350 579
580 669
670 739
740 799
800 850
Poor - Excellent
Regular APR (%) 21.99% variable
Annual Fee $0
Rewards Earning Rate 5% back in rewards on IKEA® purchases, 3% back in rewards on dining, grocery and utility purchases, 1% back in rewards on all other purchases.
Investopedia Credit Card Rating Methodology
Investopedia is committed to delivering the best credit card recommendations in the industry. We’ll tell you when a card is good, we’ll tell you when a card is bad, and we’ll only call a card the best if we would recommend it to our friends or family members.
Overall Star Rating Explained
To rate credit cards we objectively assess, score and weight nearly 100 individual card features which roll up into five major feature sets: fees, interest, rewards, benefits and security/customer service. Here’s how we weighted those feature sets for the overall star rating of a card:
We have applied our proprietary rating methodology to every generally-accepted credit card in the U.S. domestic market to allow consumers to make fully informed choices. It’s important to note that for our overall score that we make a number of assumptions about how you would be using your credit card:
  1. While we make no assumption as to whether balances are carried on a given card we do assign varying weights to all credit cards’ introductory APR (if present) in addition to the regular, long term purchase and balance transfer interest rates.
  2. We utilize BLS (U.S. Bureau of Labor Statistics) income and average category spending data to calculate annual earnings rates for rewards cards that offer cash back, points or miles rewards at a set rate on all spending or in consideration of bonus rewards for certain spending categories, like gasoline, groceries, restaurants or travel.
  3. We determine the maximum points value of rewards cards by dividing the points, cash back or miles required to exchange for the retail price of the most valuable redemption option (for example, in the case of a card that offers a domestic roundtrip airline ticket as a redemption option vs. another redemption option of lesser value that requires the same amount of points or miles to acquire, we would base the rewards value on the airline ticket).
  • Cards that are selected best overall in their respective categories generally feature most if not all of the following attributes:
  • Low or Reasonable Fees Credit card fees come in many forms but the primary ones involve those for annual card membership and balance transfer. There are a myriad of reward and non-reward card options that charge no annual fee but for the many that do assess an annual fee the cost is often justified by their lucrative ongoing rewards and initial signup bonuses. Balance transfer fees are occasionally waived during introductory periods with certain cards, a factor which is heavily and positively weighted in our scoring model for cards offering this benefit. When charged, balance transfer fees range between 3% - 5%, which we grade accordingly. Other standard fees can generally be avoided, such as those for paying late or taking cash advances but we rate those relative to other cards in the market for reference, though with less weight assigned
  • Competitive Interest Many cards offer 0% introductory APR on purchases and balance transfers for varying lengths and then revert to a permanent or regular APR (based on a variable rate tied to the prime rate) that applies to any balances not paid in full. We rate both introductory APR percentage and length (in months) along with the midpoint of the variable regular APR interest rate range.
  • Valuable Rewards Credit card reward programs can be based on cash back, points or travel rewards (which can be generic or travel partner-specific, as with airline and hotel co-brand card programs). For cards that offer rewards we determine the value per dollar spent along with average redemption values and assign more favorable ratings to cards that offer superior consumer value. We also assign value to sign-up bonus offers and their initial spending requirements, when present.
  • Excellent Benefits Credit card benefits cover a range of offerings like concierge service, TSA Pre-check, auto rental coverage, travel accident insurance, lost luggage assistance and free credit scores. We rate cards on the number and level of over a dozen standard and upscale benefits and provide extra weighting emphasis for those travel-related perks that apply to premium travel cards when present.
  • Solid Security/Customer Service Security and customer service features like lost or stolen card replacement, being able to lock one’s card from an issuer app and 24 hour customer support are becoming more standard across the card market and we provide a significant amount of weighting to features in this area.
  • You can also read the full version of our methodology for a more in-depth look at how we assess cards and award them the best in various categories.