The IKEA Visa Credit Card aims to reward customers for purchases made at the Swedish furniture behemoth as well as on everyday shopping.
Robin is a former credit cards writer for NerdWallet. She previously worked at Bankrate and has been interviewed as an expert on credit and credit cards by such outlets as CNBC, Business Insider and International Business Times.
Assigning Editor Kenley Young
Assigning Editor | Credit cards, credit scores
Kenley Young directs daily credit cards coverage for NerdWallet. Previously, he was a homepage editor and digital content producer for Fox Sports, and before that a front page editor for Yahoo. He has decades of experience in digital and print media, including stints as a copy desk chief, a wire editor and a metro editor for the McClatchy newspaper chain.
Fact CheckedMany or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Ikea and Comenity Capital Bank have put together a new $0 -annual-fee credit card designed to reward loyal customers. The IKEA Visa® Credit Card , which launched May 15, offers rewards on purchases at the Swedish behemoth as well as on everyday shopping.
Cardholders will earn:
5% back in rewards per dollar spent on all Ikea purchases, as well as Traemand kitchen installation and TaskRabbit At-Home Assembly services (which Ikea bought in September 2017)
3% back in rewards per dollar spent on dining, grocery and utility purchases 1% back in rewards per dollar spent on all other purchases made with the cardThe IKEA Visa® Credit Card also comes with a None .
Redeeming rewards is automatic, if complicated. For every 15 Reward Dollars you earn, a $15 Ikea Reward Certificate will be mailed to the address on your billing statement, or will be made available electronically if you’ve opted for paperless billing. These certificates can be used only at U.S. Ikea stores or the U.S. version of the company website.
If you're tempted by 3% back on dining, grocery and utility spending, you might find that a card like the Blue Cash Everyday® Card from American Express could be a better fit. It earns 3% cash back at U.S. supermarkets on up to $6,000 in annual spending (then 1%); 3% cash back at U.S. gas stations on up to $6,000 in annual spending; 3% cash back on U.S. online retail purchases on up to $6,000 in annual spending; and 1% back on all other spending. Terms apply ( see rates and fees ). Rewards with the Blue Cash Everyday® Card from American Express come as statement credits to use any way you'd like, and the card's annual fee is $0 .
The IKEA Visa® Credit Card 's rewards program carries other potential drawbacks. For example, say you decide to purchase a VIMLE 6 seat sectional couch, which Ikea lists on its website at $1,899 before tax. If you pay for it with the IKEA Visa® Credit Card , you'd earn $94.95 back in rewards — but since you can only get rewards in increments of $15, you'd receive reward certificates worth $90.
Also note that you'll be on the clock when it comes to redemptions: Reward certificates expire 45 days from the date they are issued, and the reward dollars you accumulate to earn those certificates expire 36 months after the date that they are posted to your balance.
Plus, the IKEA Visa® Credit Card comes with a stiff annual percentage rate for purchases, and there's no introductory 0% interest period: The ongoing APR is 21.99%, Variable APR — so it's not ideal for financing a large purchase.
Unless you plan to furnish your house entirely in Ikea furniture over a long time period, you may be better off with a card that pays simple cash-back rewards and doesn't require complicated instructions for redemptions.
To view rates and fees of the Blue Cash Everyday® Card from American Express , see this page . About the authorYou’re following Robin Saks Frankel
Visit your My NerdWallet Settings page to see all the writers you're following.
Robin is a former credit cards writer for NerdWallet. Her work has been featured by The New York Times, USA Today, Business Insider and other media outlets. See full bio.
On a similar note.
Download the app
Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product's site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution's Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
NerdUp by NerdWallet credit card: NerdWallet is not a bank. Bank services provided by Evolve Bank & Trust, member FDIC. The NerdUp by NerdWallet Credit Card is issued by Evolve Bank & Trust pursuant to a license from MasterCard International Inc.
Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
NerdWallet Compare, Inc. NMLS ID# 1617539
California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812
Insurance Services offered through NerdWallet Insurance Services, Inc. (CA resident license no.OK92033) Insurance Licenses
NerdWallet™ | 55 Hawthorne St. - 10th Floor, San Francisco, CA 94105
