IKEA® Visa® Credit Card: A Must-Have Card for IKEA Shoppers

IKEA® Visa® Credit Card: A Must-Have Card for IKEA Shoppers

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Citi is an advertising partner.

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.

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 $-00 Annual Fee 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 – 18 month BT offer.

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 Flex℠, which features a Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year..

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 Flex℠

  • On Chase's Secure Website
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The Chase Freedom Flex℠ is one of our favorite cashback credit cards because of its ability to earn lots of cash back on a variety of purchases. Unlike the IKEA® Visa® Credit Card, which offers the ability to earn 5% back in rewards on IKEA® purchases, including Traemand installation and TaskRabbit assembly services, 3% back in rewards on dining, grocery stores and utility purchases, and 1% back in rewards on all other purchases, the Chase Freedom Flex℠ features a bonus category every quarter. For spending in the bonus category, cardholders can Earn 5% cash back on eligible purchases in rotating categories, 5% on travel purchased through Chase, 3% on dining and drugstores, and 1% on all other purchases.

Moreover, unlike the IKEA® Visa® Credit Card, you don't have to worry about rewards expiring, and you can redeem rewards as statement credits to cover practically any purchase with your card.

Highlights:

  • Earn 5% cash back on eligible purchases in rotating categories, 5% on travel purchased through Chase, 3% on dining and drugstores, and 1% on all other purchases.
  • Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.
  • $0 annual fee.
  • Chase Freedom Flex℠ full review

IKEA® Visa® Credit Card vs Citi® Double Cash Card – 18 month BT offer

  • On Citibank's Secure Website
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While the Citi® Double Cash Card – 18 month BT offer cannot match IKEA's rewards rate for 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 categories, the Citi® Double Cash Card – 18 month BT offer is effectively twice as valuable as the IKEA® Visa® Credit Card. Cardholders Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.

Highlights:

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 has a $0 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.

Highlights:

  • 5% back at Amazon and Whole Foods Market with an eligible Prime membership*. 2% back at restaurants, gas stations, and drugstores*. 1% back on utilities, rideshare, and 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

The information related to the Amazon Prime Rewards Visa Signature Card has been collected by ValuePenguin and have not been reviewed or provided by the issuer of this card prior to publication.

Bailey is a Research Analyst at ValuePenguin, covering insurance. He graduated from Occidental College with a B.A. in Mathematics and a minor in Computer Science. Bailey's analysis has been featured by CNBC, the Houston Chronicle and the National Transportation Bureau Safety Board.

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

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How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).