Meet the IKEA Credit Card to see if its rewards program is a good fit for your loyal IKEA shopping, as well as its fees, APR, and perks.
In addition to affordable furniture and those famous meatballs, there’s now another reason to be a regular at IKEA: the IKEA Visa credit card.
This rewards credit card is designed for shoppers at IKEA, but it may be a good choice for anyone who wants rewards on all other purchases they make.
That includes gas, dining out, travel, groceries, and everyday spending. That gives it an edge over the other IKEA-branded credit card: the IKEA Projekt card, which only functions at IKEA USA.
The IKEA Visa doesn’t carry an annual fee and comes with a few other benefits beyond rewards earning. Some of those benefits are bonus rewards and free shipping offers, as well as membership in IKEA Family, the store’s loyalty program.
How does the IKEA Credit Card Work?
Along with affordable furniture and those famous meatballs, there is now a new reason to shop IKEA: the IKEA Visa credit card.
This new rewards credit card is designed for IKEA customers but could also be a good fit for anyone who wants to earn rewards on all their other purchases.
Those would include gas, dining, travel, groceries, and everyday spending. That’s a benefit compared to the other IKEA-branded credit card, the IKEA Projekt card, which can only be used at IKEA USA.
The IKEA Visa has no annual fee and offers some other benefits, aside from rewards earnings. They include bonus rewards and free shipping offers, as well as membership in IKEA Family, the store’s loyalty program.
This card could be a good choice for you if you shop at IKEA on a regular basis but you want the flexibility of being able to earn rewards anywhere. There’s a catch, though: the rewards you earn can only be applied towards IKEA purchases.
Are there Rewards on the IKEA Credit Card?
The IKEA Visa offers plenty of opportunities for earnings for loyal IKEA shoppers. The card gives you 5% of your spending back on IKEA purchases.
You also get the same 5% back when you use your card to pay for Traemand installation and TaskRabbit assembly services. The 5% back rewards rate is where it shines. You’re basically getting $50 back for every $1,000 spent, which isn’t bad.
IKEA’s Projekt card, meanwhile, doesn’t offer any sort of rewards; you just get promotional financing on large purchases.
Beyond IKEA, you do get rewards on the rest of your spending. You can get 3% back when you use your card for dining, grocery, or utility purchases. On everything else, you’ll get 1% back.
Rewards are uncapped, so you can get a ton of mileage out of this card if you shop at IKEA regularly. The reward rate on grocery, dining, and utility purchases is also competitive, compared to what some other rewards offer.
How to Redeem Rewards at IKEA
You are able to earn some great rewards with the IKEA Visa, but you need to know how you are able to use them. When you’re earning IKEA Visa rewards, you’re earning back a percentage of what you’ve spent, but it’s not exactly the same as getting cash back.
Instead, IKEA Visa rewards are earned in the form of a rewards certificate. Rewards certificates are issued in $15 increments on your bill statement.
You can then go on to use them to shop at U.S. IKEA stores or online through the IKEA website. This kind of redemption plan makes it easy to save money at IKEA. You just use your rewards certificate to shop and it’s like getting a discount on what you’re spending.
This kind of redemption plan makes it easy to save money at IKEA. You just use your rewards certificate to shop, and it’s like getting a discount on what you’re spending.
That limits your opportunity for saving money elsewhere. Other rewards cards provide more versatility in your redemption alternatives.
If you’d rather have cash in your pocket or utilize rewards as a statement credit, for example, the IKEA Visa may not be a smart option.
Are there Other Bonuses from the Ikea Credit Card?
IKEA offers some incentives to sign up for a Visa account, in addition to rewards on purchases. When you open a new account, you get these extra perks:
- Get $25 off your first purchase when you use your IKEA Visa the same day you sign up for it.
- Free standard shipping and delivery on in-store IKEA purchases.
- Bonus IKEA reward certificate when you meet the minimum spend.
- All of those sound wonderful, but there are some restrictions to remember.
The promotion of free standard delivery and shipping is for a limited time only. There are also limitations on the delivery area, so if you are outside IKEA’s delivery zone, you might not be able to enjoy this benefit.
The bonus certificate is also time-restricted. You have to make the qualifying purchases within the first 90 days of opening your account to get the certificate.
The best part is that the minimum expenditure requirement is for all of your purchases and not just what you spend at IKEA. It’s also relatively low at $500, so you may not find it difficult to meet the requirement.
The value of the bonus certificate is significantly less than what you might be able to earn with a typical cash back card.
That’s something to remember if you’re looking for a card that will put some serious cash in your pocket right from the start.
In Conclusion
The IKEA Visa is designed for frequent IKEA shoppers. This card could be an excellent choice for a person who shops at IKEA a lot and spends a lot of money there and would like to get money back from those purchases.
It’s also a good fit for a person who wants an everyday rewards card that can be used anywhere. The card does fall short, though, in terms of APR and rewards redemption.
If you sometimes carry a balance on your card or you just want more redemption choices, we’d suggest shopping around for another rewards card alternative.
