The IKEA Visa Credit Card Review

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The IKEA Visa Credit Card Review

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

  • The following are the most satisfying aspects of shopping at IKEA: This card gives you 5% back when you buy at IKEA stores or online. If you don’t have the time or energy to put together your IKEA items yourself, you can also earn 5% back when you use your card to pay for Traemand or TaskRabbit installation and assembly services. That’s a good rewards rate that you won’t usually get on retail co-brand or closed-loop shop credit cards.
  • Automatic participation in the IKEA Family membership program: New cardmembers are automatically registered in the IKEA Family membership program, which has its own set of perks. IKEA Family members get unique savings on selected goods, seminars and activities, and complimentary hot refreshments whenever they visit an IKEA store. You may also join IKEA Family without a card, but you must enroll independently.
  • Earn points whenever Visa is accepted: Unlike other closed-loop shop rewards credit cards, the IKEA Visa allows you to earn a portion of your purchases back everywhere Visa is accepted. That means you can earn points whether you’re purchasing groceries, shopping at your favorite department store, or booking a vacation with your card. Closed-loop retail shop cards restrict you to just spending and collecting rewards at their own locations.

Cons Explained

  • Only billing statement credit may be redeemed for rewards: You may be able to redeem points for bill credit, cash back, gift cards, vacation, or other choices with a regular rewards card. The IKEA Visa credit card automatically credits rewards to your billing statement. Rewards may be redeemed in increments of $15.
  • Purchase and balance transfer APRs are higher than average: If you intend to carry a load, the APR on purchases and balance transfers makes this card less enticing. Because neither has an introductory APR, you’ll be paying the usual variable rate from the moment you start your account.
  • There is no conventional one-time offer: The IKEA Visa credit card comes with a one-time promotion, but it’s not the kind you’d anticipate from a cash back credit card. Instead of receiving cash back after reaching a certain spending criteria, you will get a First Purchase Discount.

This card might be useful for someone who spends a significant amount of money on furniture, home design, or home remodeling, or who is a fan of the IKEA brand. The rewards system also allows you to earn money back on routine purchases.

Additionally, if you use TaskRabbit or Traemand for furniture installation and assembly, this card might be beneficial. You can receive 5% back on such costs, which is more than you’d get with a typical cash back rewards card.

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IKEA Visa Credit Card One-Time Offer

As previously stated, this card does not include the standard one-time promotion. You may instead receive $25 off your first IKEA purchase. When compared to a typical cash back rewards card, that’s not exactly a spectacular incentive. However, it is comparable to the kind of first-purchase discounts or incentives seen on other retail co-brand credit cards.

Rewards Earning Details

With the IKEA Visa credit card, you may earn points in three ways:

  • IKEA, Traemand, and TaskRabbit all provide 5% cash back.
  • Earn 3% cash back on restaurant, grocery, and utility purchases.
  • Get 1% cash back on all other purchases.

There are no reward limits, so the more you spend, the more you may get back. And since you can use this card everywhere Visa is accepted, you may use it to earn points on almost any transaction.

Rewards Redemption Details

It is simple to redeem your IKEA Visa credit card points. Rewards are immediately applied as a $15 credit on your billing statement. They do, however, expire after 45 days.

How to Maximize Your Rewards

Getting the most out of your benefits is dependent on how much you spend and where you use your card. Here are two ways to optimize your benefits with this card.

Average Case

Assume you spend $5,000 each year on house improvements and furnishings. You may be able to obtain $250 back on those purchases. If you spend $10,000 on food, eating, and utilities and $5,000 on other regular expenses, you’ll get $300 and $50 back, respectively. On a total of $20,000 in purchases, you’d get $600 in incentives.

Aspirational Case

Assume you have some large home renovation projects planned and expect to spend $20,000 at IKEA this year. You also spend $10,000 on meals, food, and utilities, in addition to $5,000 on daily expenses. At that rate, you’d get $1,000 + $300 + $50 back on $35,000 in purchases, for a total of $1,350.

Standard Benefits

The IKEA Visa credit card comes with the following basic benefits:

  • Emergency card replacement
  • Roadside Dispatch

Cardholder Experience

Comenity Bank, which is not rated in J.D. Power’s 2021 U.S. Credit Card Satisfaction Study, issued this card.

You may manage your account either online or on your mobile device. To reach customer assistance, dial 866-387-6145.

Security Features

This credit card has a chip, and your online information is encrypted for enhanced security. If you have questions concerning identity theft or fraud, you may reach out to us by phone or secure messaging. You may quickly report lost or stolen cards, and you are protected by a $0 liability fraud guarantee.

Fees to Watch out For

The APR for purchases, debt transfers, and cash advances is more important to be aware of with this card than the fees. The IKEA Visa, like other retail credit cards, offers an above-average APR for all three, possibly making carrying a debt month to month more costly.

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Our Verdict

The IKEA Visa credit card may be a suitable choice for DIYers and those who like shopping at IKEA for their house. If you usually charge your eating, groceries, and utilities, this card is especially tempting for getting a substantial percentage back. Furthermore, there is no yearly charge.

This card may be less appealing if you aren’t an IKEA regular or don’t have a major home improvement project planned. If you want a card with more flexible redemption choices or a more significant one-time incentive, you should seek elsewhere. A regular cash back rewards card could be a better fit for your requirements.

Investopedia Credit Card Rating Methodology

Investopedia is dedicated to providing the most accurate credit card advice in the business. We’ll tell you when a card is excellent, when it’s awful, and we’ll only declare a card the greatest if we’d suggest it to our friends or family.

Overall Star Rating Explained

To rank credit cards, we objectively examine, score, and weight roughly 100 unique card characteristics, which are then categorized into five key feature sets: fees, interest, rewards, perks, and security/customer service. Here’s how we weighted those feature sets to get a card’s total star rating:

We have applied our patented grading approach to every widely recognized credit card in the domestic market of the United States, allowing users to make fully informed decisions. It’s crucial to understand that we make a lot of assumptions regarding how you’ll use your credit card when calculating our overall score:

  1. While we make no assumptions about whether or not balances are held on a certain card, we do apply differing weights to all credit cards’ promotional APR (if applicable), as well as the normal, long-term purchase and balance transfer interest rates.
  2. We use 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 fixed rate on all spending or with bonus rewards for specific spending categories such as gasoline, groceries, restaurants, or travel.
  3. The maximum points value of a rewards card is calculated by dividing the number of 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 chosen as the greatest overall in their respective categories often include the majority, if not all, of the following characteristics:
  • Fees that are low or reasonable Credit card fees may take numerous forms, but the most common are those for annual card membership and debt transfers. There are several reward and non-reward card alternatives with no annual fee, but the cost of the ones that do charge an annual fee is generally justified by their attractive recurring benefits and initial signup incentives. Balance transfer costs are often removed during introductory periods with certain cards, which is a feature that is highly and favorably weighted in our scoring model for cards that provide this advantage. Balance transfer costs, if paid, vary between 3% and 5%, and we evaluate them appropriately. Other regular costs, such as those for late payments or cash advances, may often be avoided, but we assess them compared to other cards in the market for reference, but with less weight allocated.
  • Competitive Motivation Many credit cards provide 0% introductory APR on purchases and debt transfers for varied periods of time before reverting to a permanent or normal APR (based on a variable rate related to the prime rate) that applies to any balances that are not paid in full. The introductory APR % and term (in months) are both rated, as is the midpoint of the variable regular APR interest rate range.
  • Excellent Benefits Credit card reward schemes might provide cash back, points, or travel benefits (which can be generic or travel partner-specific, as with airline and hotel co-brand card programs).For cards that give rewards, we calculate the value per dollar spent as well as typical redemption values and award higher ratings to cards that provide greater customer value. We also appreciate sign-up bonuses and their first spending criteria when they are available.
  • Excellent Advantages Concierge service, TSA Pre-check, vehicle rental coverage, travel accident insurance, lost baggage help, and free credit scores are all examples of credit card advantages. We grade cards based on the amount and quality of over a dozen standard and upscale advantages, with additional weighting given to travel-related perks that apply to premium travel cards where they are present.
  • Excellent security/customer service Security and customer service features like as lost or stolen card replacement, the ability to freeze one’s card through an issuer app, and 24 hour customer assistance are becoming increasingly common in the card industry, and we put a high value on them.
  • You can also read our comprehensive methodology for a more in-depth look at how we evaluate cards and reward the best in different categories.
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