TJ Maxx Credit Card: Is It a Good Deal?

TJ Maxx Credit Card: Is It a Good Deal?

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 TJX Rewards® Credit Card is a decent option for scoring discounts at TJ Maxx, Marshalls, HomeGoods and Sierra stores. However, due to the low 1% rewards rate this card gives on all other purchases, it doesn’t make for a very good primary credit card. You can get this card to use whenever you shop at TJ Maxx, but we recommend sticking to another option for all your other purchases.

This card is good for...

  • Getting a 5% rewards rate at TJ Maxx, Marshalls, HomeGoods and Sierra stores
  • Those who want a 10% coupon for the affiliated stores

This card is bad for...

  • Anyone looking for an everyday credit card
  • People who tend to carry a balance on their credit card

Review: Should You Apply for the TJ Maxx Credit Card?

The TJX Rewards® Credit Card can give you good savings at TJ Maxx, Marshalls, HomeGoods and Sierra stores but not much else. For purchases outside of these stores, most consumers will be better off sticking to a cash back credit card like the Chase Freedom Flex℠ or the Citi® Double Cash Card – 18 month BT offer. Even the 10% discount that you get on your first TJ Maxx purchase through the TJX Rewards® Credit Card isn’t as good as the bonuses you can qualify for through other rewards cards.

Remember that you always have the option to sign up for more than one credit card. You can get the TJX Rewards® Credit Card and use it as a secondary card in your wallet. Use it whenever you are shopping at TJ Maxx brand stores, and use another credit card for your other everyday needs. This is the most optimal set up. The major downside to opening two credit cards can have a negative impact on your credit score. Submitting two applications will cause your average age of credit to go down, and the number of hard inquiries into your report will increase – these two factors can have substantial effects on your score. If you were going to apply for another loan within the next 6-12 months, you should be aware of this as a factor. However, in the long-run these are likely to not matter much.

The other thing worth noting about the TJX Rewards® Credit Card is how bad its APR is – 27.24%. This is significantly higher than most credit cards on the market. It’s even higher than what we’ve seen from other store credit cards. If you get this card, you should never use it to carry a balance month-to-month. Make sure to always pay off your bill in full.

Bottom Line: The TJX Rewards® Credit Card can be a good secondary card that you can use to get you discounts at TJ Maxx stores. However, if you want to apply for just one new credit card to give you discounts and rewards, you should consider other options.

TJX Rewards® Credit Card Benefits & Features

The TJX Rewards® Credit Card earns you five points on every dollar spent at TJ Maxx, HomeGoods, Marshalls and Sierra Trading Post stores inside the United States and Puerto Rico. You can also use this card wherever Mastercard is accepted. Doing so will award you with one point per dollar. Every time you earn 1,000 points, they can be redeemed for a $10 rewards certificate that can be used at any of the card’s affiliated brands. The certificate is not redeemable for actual cash, which means this card is not a true cash back credit card. Your reward certificate will also expire two years after it is issued, so make sure you only use your points once you’re ready to use them – otherwise you run the risk of wasting them.

In lieu of a traditional credit card bonus, the TJX Rewards® Credit Card gives you 10% off your first online or in-store purchase. This pales in comparison to other credit card bonuses. For example, most decent cash back credit cards typically reward you with $100 after you spend at least $500 on your card within the first 3 months of card membership. Even if your first in-store purchase was $500, you’d only receive $50 off.

Important: The small print for this credit card outlines some restrictions on the 10% discount. If you apply for this card online, the discount can only be used towards an online purchase. This may be important, if you don’t want to deal with shipping costs. These will eat away into your savings. When you apply for the card in other ways, such as in-store, you will receive a coupon through the mail for the 10% discount. This can then be used in-store only.

The TJX Rewards® Credit Card has an APR of 27.24%. This is over 10 percentage points higher than the average credit card APR. We don’t recommend anyone to every carry a balance on this credit card, since this high APR will cause interest charges to be astronomically high.

How Does the TJX Rewards® Credit Card Compare to Other Credit Cards?

To figure out the true value of the TJX Rewards® Credit Card, it’s imperative to understand how it fits within the greater context of the credit cards market. We compared it to some cash back credit cards, which allows us to highlight this card’s strengths and weaknesses.

TJX Rewards® Credit Card vs. Chase Freedom Flex℠

  • On Chase's Secure Website
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The Chase Freedom Flex℠ is one of the best cashback credit cards around and can give you some significant savings. However, it won’t be very useful at TJ Maxx stores. The card lets you 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. Typically, the fourth quarter of each year includes department stores as a category. However, it should be noted that TJ Maxx is not categorized as a department store. Therefore, you will likely never get more than 1% cash back at these stores using the Chase Freedom Flex℠. The situation is reversed when you consider non-TJ Maxx purchases. While the TJX Rewards® Credit Card will always only give you a 1% return outside of TJ Maxx, the Chase Freedom Flex℠ has the potential to earn you up to 5%.

Below are the 2020 cash back categories that have been revealed for the Chase Freedom Flex℠ so far.

January - MarchApril - JuneJuly - SeptemberOctober - December
Gas stations, internet, cable, phone services and select streaming servicesGrocery stores, fitness clubs and gym memberships, select streaming servicesAmazon.com and Whole FoodsWalmart and PayPal

Bottom line: The Chase Freedom Flex℠ can give you better returns than the TJX Rewards® Credit Card. However, to do this you will need to pay attention to the rotating rewards calendar.

TJX Rewards® Credit Card vs Citi® Double Cash Card – 18 month BT offer

  • On Citibank's Secure Website
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The Citi® Double Cash Card – 18 month BT offer is a simple yet effective cash back credit card. Again, it won’t be able to beat the 5% rewards rate you’d get at TJ Maxx with the TJX Rewards® Credit Card. However, when it comes to almost all other purchases, the Citi® Double Cash Card – 18 month BT offer is the superior choice, since for all purchases you can Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. If you want to open just one new credit card, you should probably make it the Citi® Double Cash Card – 18 month BT offer. A quarter of all your spending would have to come from TJ Maxx stores for the TJX Rewards® Credit Card to have, on average, the same rewards rate as the Citi® Double Cash Card – 18 month BT offer. This is unlikely for most budgets. Since both credit cards come with no annual fee, you can get them both. Note that doing this will have a temporary negative effect on your credit score as we explained in the review above.

Bottom Line: If you want good rewards on all your purchases, both inside and outside TJ Maxx, you should go with the Citi® Double Cash Card – 18 month BT offer.

TJX Rewards® Credit Card Questions & Useful Resources

Here are some common answers people look for when dealing with the TJX Rewards® Credit Card.

  • What is the TJ Maxx credit card customer service phone number? TJX Rewards Platinum Mastercard holders can call 1-877-890-3150. If you are a TJX Rewards Credit Card user call 1-800-952-6133.
  • How do I login to my TJ Maxx credit card account? You can use this link.
Joe Resendiz

Joe Resendiz is a former investment banking analyst for Goldman Sachs, where he covered public sector and infrastructure financing. During his time on Wall Street, Joe worked closely with the debt capital markets team, which allowed him to gain unique insights into the credit market. Joe is currently a research analyst who covers credit cards and the payments industry. He earned a bachelor’s degree from the University of Texas at Austin, where he majored in finance.

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).