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The IKEA® Visa® Credit Card offers excellent rewards for IKEA purchases as well as restaurant, grocery and utility purchases. One caveat, however, is that the rewards the IKEA® Visa® Credit Card earns can only be used for IKEA purchases and expire 45 days after being issued. This limits the usefulness of this card to those who don't shop at IKEA often.
- Benefits and Features
- How Does the IKEA® Visa® Credit Card Compare to Other Credit Cards?
- Comparison Tool
Review: Our Thoughts on the IKEA® Visa® Credit Card
Casual IKEA shoppers—who might only visit a few times per year—will likely have a difficult time fully utilizing the rewards that the IKEA® Visa® Credit Card offers. Unlike typical cash back credit cards—which allow you to use your rewards as a statement credit—the IKEA® Visa® Credit Card only lets customers use their rewards toward IKEA purchases. Furthermore, Reward Certificates are issued automatically (in $15 increments) and expire after 45 days.
As long as you can deal with the above, the IKEA® Visa® Credit Card provides excellent rewards for IKEA purchases and also comes with valuable perks. Not only is the 5% rewards rate for IKEA purchases extremely high for a card with no annual fee, but the free delivery for in-store IKEA purchases can be worth as much as $59 each use. This card is worth considering for the free delivery benefit alone.
One mark against this card is that it has a fairly high APR of 21.99%. This is much higher than the average interest rate—which is around 15%. Those looking for a way to finance IKEA purchases may want to consider the IKEA Projekt Credit Card, which is a store card—meaning it can only be used at IKEA. This card offers 4.99% APR financing for 60 months on purchases of $5,000 or more.
Bottom Line: The IKEA® Visa® Credit Card is great for IKEA purchases, though its restrictive rewards structure make it difficult to recommend to those that visit the store infrequently. For more flexible rewards with no annual fee, consider a cash back credit card such as the Citi® Double Cash Card.
IKEA® Visa® Credit Card Benefits and Features
Cardholders can earn IKEA Reward Dollars for using their IKEA® Visa® Credit Card to make purchases at a rate of 5% for IKEA purchases, Traemand installation services and TaskRabbit assembly services; 3% for dining, grocery and utility purchases; and 1% for all other purchases. The rewards come in the form of $15 IKEA Reward Certificates that are automatically issued on a monthly basis whenever the cardholder amasses at least 15 Reward Dollars. IKEA Reward Certificates can be redeemed at U.S. IKEA stores and on IKEA.com, and they expire 45 days after they are issued.
IKEA shoppers who open and use a IKEA® Visa® Credit Card on the same day can get $25 off their first IKEA purchase. Additionally, cardholders can earn a $25 IKEA Reward Certificate when they spend $500—not including IKEA, Traemand and TaskRabbit purchases. This is a decent bonus for a no-annual-fee card. However, other cards offer better bonuses, such as the Chase Freedom®, which features a $150 bonus for making $500 in purchases within three months of account opening.
The IKEA® Visa® Credit Card also features free shipping and delivery on in-store IKEA purchases through Aug. 31, 2018. However, IKEA may limit when you can receive this benefit based on the purchase location. This can be an incredibly valuable benefit considering IKEA typically charges $29 to $59 for large-item deliveries.
How Does the IKEA® Visa® Credit Card Compare to Other Credit Cards?
Here at ValuePenguin, we always recommend you comparison shop when looking for credit cards. Without doing so, it's almost impossible to know whether a card is the best fit for you and your spending habits. Below, we have compared the IKEA® Visa® Credit Card to some of our favorite cash back credit cards.
IKEA® Visa® Credit Card vs Chase Freedom®
The Chase Freedom® is one of our favorite cash back credit cards because of its ability to earn lots of cash back on a variety of purchases. Unlike the IKEA® Visa® Credit Card, which only offers 5% cash back on IKEA purchases, the Chase Freedom® features a bonus category every quarter. For spending in the bonus category, cardholders can earn 5% cash back for the first $1,500 they spend. Furthermore, with the IKEA® Visa® Credit Card, you don't have to worry about rewards expiring, as cash back rewards do not expire as long as your account is open.
For short-term rewards, the Chase Freedom® is far better than the IKEA® Visa® Credit Card. The Chase Freedom® features a bonus of $150 for customers who make $500 in purchases. This is the same level of spending that is required to get the IKEA® Visa® Credit Card's $25 IKEA Reward Certificate, though it's worth six times as much.
- Earn 5% cash back in rotating categories on up to $1,500 in purchases each quarter, and earn 1% back on all other purchases.
- Earn a $150 cash back bonus for making $500 in purchases within three months of account opening.
- Pay no annual fee.
- Chase Freedom® Full Review
IKEA® Visa® Credit Card vs Citi® Double Cash Card
While the Citi® Double Cash Card cannot match the 5% rewards rate on IKEA purchases, its excellent rewards rate on all other purchases makes it one of our favorite cash back cards. For spending that does not fall into the IKEA® Visa® Credit Card's 5% or 3% back categories, the Citi® Double Cash Card is effectively twice as valuable as the IKEA® Visa® Credit Card. Cardholders of the Citi® Double Cash Card earn 1% cash back on purchases and another 1% when they pay off their balances.
- Earn 1% cash back when you make a purchase and 1% when you pay your balance.
- Pay no annual fee.
- Citi® Double Cash Card Full Review
IKEA® Visa® Credit Card vs Amazon Prime Rewards Visa Signature Card
Amazon Prime members should consider the Amazon Prime Rewards Visa Signature Card as a more versatile alternative to the IKEA® Visa® Credit Card. The Amazon Prime Rewards Visa Signature Card lets cardholders earn 5% cash back on Amazon.com and Whole Foods purchases; 2% cash back at restaurants, gas stations and drugstores; and 1% cash back on all other purchases. Furthermore, its rewards function as a typical cash back credit card—meaning they can be applied to all purchases—as opposed to the IKEA® Visa® Credit Card which restricts rewards redemption to IKEA purchases.
Consumers should keep in mind that—while the Amazon Prime Rewards Visa Signature Card doesn't have an annual fee—it is only available to Amazon Prime members, which costs $119 per year. Those who aren't current Amazon Prime members shouldn't consider joining just for the sake of getting the Amazon Prime Rewards Visa Signature Card, as it likely won't be worth it for that reason alone.
- Earn 5% cash back on Amazon.com and Whole Foods purchases; 2% back at restaurants, gas stations and drugstores; and 1% back on all other purchases.
- Only available to Amazon Prime members.
- Get a $70 Amazon.com gift card once approved.
- Amazon Prime Rewards Visa Signature Card Review
Use our comparison tool below to see if the IKEA® Visa® Credit Card is right for you.