How the Sears Credit Card Works: Benefits and Rewards

One of the most significant retailers of consumer products in the United States, Sears is wholly owned by its parent company, Sears Holdings Corp. (SHLD).It is possible to trace its roots back to 1886, when a train station agent by the name of Richard Sears began selling gold watches by mail. He went on to develop a corporate empire with a mail-order catalog that offered everything from hats to mansions. This was the beginning of what is now known as the Sears Roebuck and Company. 12

The firm, which was once known as Sears, Roebuck & Co., flourished during the latter half of the twentieth century. It built stores all across the nation and acquired well-known brands like Kmart, Kenmore, Craftsman, and DieHard during this time. 1

The company, which declared bankruptcy in 2018, had a rough go of it over the last several years. 3 The company, which has approximately 3,500 sites throughout the country and was historically the most successful retailer and employer in the country, made the announcement in November 2019 that it will be closing all of its stores except for 182. 45 According to a piece published by Axios in May 2022, there were just three Kmart shops that were functioning as of April 2022, while the number of Sears stores that were functional was not specified. 67

Key Takeaways

• Both a retail credit card and a MasterCard co-branded card are offered by Sears to its customers. These cards come with differing degrees of perks and benefits.

• Cardholders have the opportunity to earn cashback rewards points, which may either be redeemed in-store or online, in addition to seasonal incentives such as no-interest financing on select purchases.

• On the website for Sears, users may still get their hands on these labels, in addition to a large number of other notable brand names. Consumers who are interested in purchasing new home appliances or making other substantial upgrades to their properties should investigate Sears and compare the company’s financing options to those of its various competitors.

How the Sears Credit Card Works

A standard in-store Sears Card is offered by Sears, and the company also has a partnership with Citibank of Citigroup Inc. (C) to offer its customers a selection of co-branded general-use “Shop Your Way” credit cards that come with rewards and perks programs. These cards are available to customers who shop at Sears. These cards let the user to accumulate points on day-to-day purchases like gas or groceries, which can then be redeemed at any Sears store. 8

Users are able to use their Shop Your Way credit cards in-store or online at Sears and Kmart using the Sears Card, which is the most basic form of the Shop Your Way credit card. The Sears “Shop Your Way” MasterCard from Citibank may be used to make transactions anywhere that accepts MasterCard. 8

Sears Home Services Financing

Cardholders have the opportunity to take advantage of a variety of one-of-a-kind financing alternatives for home improvements, including zero-interest financing for a period of 18 months for home generators, windows, entry doors, and heating and air conditioning equipment. 9

Those who have this card may use it to pay for large purchases made via the Sears Home Services division, which not only helps with installation but also with maintenance and repairs. Customers who want to do things like upgrade their windows may do so by working with the Sears Home Services department, which provides both the material and the installation. 9

After a phone session that lasts between five and ten minutes, the next step is an in-home consultation.

The Shop Your Way Credit Card

Shop According to Your Personal Taste MasterCards offer a cash back bonus of 5% on qualified fuel purchases, 3% on grocery shops and restaurants (limited to the first $10,000 of qualifying payments, then 1% afterwards), 2% at Sears or Kmart, and 1% on all other transactions. The maximum cash back bonus that can be earned on a MasterCard is $1,500. 10

Cardholders are also eligible to take advantage of seasonal offers, which may include additional savings on certain goods or financing options with no interest for a short time. 10

Cardholders who use their Sears card at Sears Home Services may be eligible for a free in-home consultation as well as 18 months of financing with no interest on large home improvement and remodeling products. This perk is available to cardholders who use their Sears card at Sears Home Services.

Users of either card will not be charged an annual fee and will get online services, immunity from liability for illegal transactions, advance notice of any special events hosted by Sears, and assistance in resolving identity theft issues. 8

In the first three months after opening their new Sears MasterCard account, first-time cardholders have the opportunity to earn up to $225 in statement credits. As of the month of August 2022, there are no longer any limited-time offers available to new Sears Card members. 8

In addition, each card comes with a selection of special perks and benefits. Cardholders may, for instance, get a five percent discount on certain store purchases or no interest on purchases of $299 or more provided the whole amount is paid in full within a year of making the transaction. 10 Deals of a similar kind may be found for a variety of products, including those for the home and garden, fitness, lawn and garden, tools, leisure goods, furniture, and beds.

Rewards and Benefits

Customers who often make significant purchases at Sears are the ones who stand to profit the most from applying for a Sears card. The provision of a 5% discount on major purchases or the provision of no-interest financing stands out as the most important benefit of having one of these cards.

For the majority of card benefits, a minimum yearly purchase of $299 must be made in each category. Customers who do not make significant purchases at Sears on a regular basis may find that having a Sears card does not result in any long-term savings for them.

Customers who are contemplating major renovations or updates to their homes may want to take into consideration using their Sears credit card. Sears Home Services offers an alternative to paying for the renovations all at once or using another credit card by providing credit card financing options with no interest payments spread out over the course of 18 months.

How to Get the Sears Credit Card

Customers have the option of applying for a Sears credit card or a Sears MasterCard either online or in-store at their local Sears or Kmart location.

Applicants are asked to provide personal financial information and consent to a credit check.

Required Credit Score

Sears and MasterCard, like most other providers of credit, do not disclose information regarding the criteria they use to determine credit ratings. However, credit cards of this kind are often easier to get than many others for two reasons: the credit limit that is offered may be quite low, and the interest that is charged for carrying a balance forward is substantial. As a consequence of this, there is a little risk involved, and the issuer stands to make a significant profit from them.

A applicant whose credit score is between the range of 580 to 669, often known as the “fair” category, has a greater chance of being approved. 11

It is required that applicants be at least 18 years old, or at least 21 years old if they reside in Puerto Rico. 12

Where Can the Card Be Used?

Both in-store and online purchases may be made using a credit card issued by Sears. The Sears MasterCard may be used at any location that recognizes MasterCard as a valid form of payment. 8

Alternatives

Customers now have access to a plethora of other credit card options that come equipped with various usage-based incentive programs.

There are a number of businesses, like Walmart Stores Inc. (WMT), Home Depot Inc. (HD), Best Buy Co. Inc. (BBY), and Macy’s Inc., who issue such cards and incentives for their customers (M).Credit card services are offered to the customers of each of these businesses. For instance, the My Best Buy card provides up to twenty-four months of interest-free financing on major home appliances, in addition to five percent cash back in the form of rewards points. 1314

A 5% discount is applied to purchases made on Walmart.com, a 2% discount is applied to sales made in Walmart stores, restaurants, travel agencies, and gas stations, and a 1% discount is applied to purchases made wherever else the card is accepted. 15

Customers who make significant purchases at Home Depot are eligible to apply for the Consumer Credit Card, which provides consumers with up to 24 months of financing during special specials as well as a one-year return policy that is hassle-free. 16

The Sears Credit Card Interest Rates, Terms and Conditions

The annual percentage rate (APR) for purchases made with either the Sears Card or the Sears MasterCard is 27.49%, while the APR for cash advances is 29.40%. 12

The transaction fee for cash advances is equal to either $5 or 5% of the amount of the cash advance, whichever is larger. 12

After the special time, the variable annual percentage rate (APR) for Sears Card purchases made at the Sears Home Center will increase to up to 27.49%, depending on the creditworthiness of the applicant. This increase will take effect in August 2022. 9

Who Should Consider the Sears Credit Card?

Sears may be a shadow of what it used to be, but the company has a long history of manufacturing high-quality home appliances, tools, auto parts, and lawn and garden equipment. Even if it is possible that for most people, Sears is not the first name that comes to mind when they are thinking about making a large purchase for their home, the website Sears.com is one that deserves to have its prices compared to those of other retailers.

In addition to selling its own Kenmore brand, it offers home appliances manufactured by firms such as Frigidaire, GE, and LG. Craftsman is a trademark that was once produced and held by the company; its tool area contains brands such as Dewalt and Black & Decker. Although it does not now hold the DieHard battery trademark, it continues to sell it with other branded products despite having lost that ownership.

If you happen to live in close proximity to one of the few remaining Sears outlets, you may find that the basic store card comes in handy. Despite the fact that the company offers a store locator on its website, users have reported that it is not up to date. 6

What Are the Benefits of Having a Sears Credit Card?

Customers who are considering the purchase of one or more high-priced items, such as tires or home appliances, may find that using a Sears credit card or a “Shop Your Way” Sears MasterCard may be very useful. When investing in a big home, it is helpful to have a discount of five percent or a financing period with no interest.

There is a wide selection of appliances, hardware, and goods for the home and garden that can be purchased at Sears. Additionally, it offers shoes, toys, and jewelry; nevertheless, it is difficult to pinpoint a competitive advantage that Sears has in these areas in comparison to rivals, such as Amazon.com or Walmart, among many others.

When making large-ticket purchases or for those who spend $300 or more annually in a department, cardholders may begin to take use of the card’s genuine benefits.

Is It Hard to Get a Sears Credit Card?

If an applicant’s credit score falls into the “fair” range, which is around 580 to 669.11, receiving credit from either Sears or Sears MasterCard should be extremely easy for the applicant.

It might be a terrific approach to purchase the necessities for your first property if you’re a young person just starting out and you’re just getting started in life. Simply make sure that you settle up with them as quickly as you can. You won’t only be able to avoid paying those high loan rates, but you’ll also see an improvement in your credit rating over time.

Does Citibank Own the Sears Credit Card?

Sears and Citibank have worked together to design a credit card that can be used everywhere that accepts MasterCard, but it also gives discounts and rewards on purchases made at Sears. Because Citibank is in charge of the card’s administration, your monthly statement will come from an address associated with Citibank. 12

This kind of co-branded card is now commonly available for use in the retail establishments of the United States.

The Bottom Line

Sears is often referred to as a “zombie shop” by business journalists and financial experts, and with good cause. Sears, which was formerly a retailing behemoth in the United States, has shrunk to a handful of old sites and has gotten rid of several of the trademarks that it built from the beginning, such as DieHard batteries and Kenmore appliances. Currently, Sears only operates a few stores.

On the website for Sears, users may still get their hands on these labels, in addition to a large number of other notable brand names. Consumers who are interested in purchasing new home appliances or making other substantial upgrades to their properties should investigate Sears and compare the company’s financing options to those of its various competitors.

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