If you reside in the United States, there’s a good chance you live near a Kohl’s department store. The company has more than 1,100 locations in 49 states (sorry, Hawaii). Kohl’s stores are popular for clothing, shoes and accessories, but they also have a robust offering of housewares, gifts and other products.
The retailer’s co-branded credit card with Capital One — the Kohl’s Card — can be a decent choice for frequent customers looking to save some money.
But getting maximum value out of the card can be complicated because you’ll have to keep track of a variety of sales, promotions and discounts. And your rewards expire quicker than you can say “shop till you drop,” in just one month.
Things to Know About the Kohl’s Card
Here are 5 things to know about the Kohl’s Card:
1. There Are Two Versions
Even though the card formerly was called the Kohl’s Charge, it’s a store credit card, not a charge card. Credit cards let you carry a balance from month to month and apply interest to unpaid balances, while charge cards require you to pay in full each month.
The $0-annual-fee Kohl’s Card comes in two flavors: One is a “closed-loop” version, meaning you can use it only at Kohl’s and earn rewards on store-related purchases.
The other is a Visa version of the card that can be used essentially anywhere. That version earns rewards with the retailer and on everyday purchases. When you apply, you’re considered for both versions of the card, and approval will be based on eligibility.
2. You Get Rewards and Other Discounts — but it’s a Lot to Track
Some store credit cards, such as the Target Circle™ Credit Card, offer cardholders a simple, straightforward discount on every purchase.
The Kohl’s Card is different. Instead of knocking off 5% or so at checkout, it gives a percentage back in its loyalty currency, Kohl’s Cash, which can be used on future Kohl’s purchases.
Card benefits are intertwined with the department store’s regular promotions and sales. Here are the main components.
3. Bigger spenders can earn status
When you spend $600 at Kohl’s with your Kohl’s Card in a calendar year, you’ll earn Most Valued Customer (MVC) status, which entitles you to additional savings and offers throughout the year.
You will also get exclusive free shipping periodically, which you can stack with your other Kohl’s offers and cash.
4. You Probably Won’t Want to Carry a Balance
The Kohl’s Card may feature promotional financing opportunities throughout the year, and unlike with other store credit cards, these aren’t sneaky deferred interest offers that can end up costing you dearly in the end. But the card’s normal ongoing annual percentage rate is hefty — as of this writing, it was above 30% for both versions of the card.
Avoid carrying a balance on your Kohl’s credit card unless you get a no-interest promotional offer, and even then, charge only what you can afford to pay off during that time.
5. See Whether You’re Preapproved without a Hard Inquiry
If you’re interested in a Kohl’s Card but worried that you may not qualify, you can check before applying without penalty.
Visit the Kohl’s Card section on the website and look for the preapproval link. Enter your name, address, Social Security number and date of birth, and you’ll instantly see whether you’re preapproved, without a hard pull on your credit report.
(If you end up officially applying, however, a hard inquiry will be performed at that time, which may temporarily ding your credit scores.)
