IKEA Visa Credit Card Review & Steps to Maximize the Rewards they Offer.
IKEA Visa Credit Card: IKEA is a thing of dreams, regardless of whether you want to furnish an apartment at the price or just enjoy shopping for Swedish basic furnitures, home goods and tchotchkes.
The IKEA Visa Credit Card offers excellent rewards for IKEA purchases, and also for purchases of restaurants, grocery stores, and utilities. However, one caveat is that the rewards earned by the IKEA Visa Credit Card can only be used for IKEA purchases and will expire 45 days after issuance. That limits this card ‘s usefulness to those who often don’t shop at IKEA.
IKEA Visa Credit Card: Key Takeaways
Solid rewards structure: Earn 5% back in rewards on IKEA purchases, 3% back on dining, utility, and grocery purchases, and 1% back on all other purchases.
Use it anywhere: The new IKEA card is a Visa credit card, meaning you can use it anywhere Visa is accepted.
Initial bonuses: Currently, you’ll earn $25 off your first IKEA purchase when you open your card and use it for a purchase on the same day. You also get a $25 IKEA reward certificate when you make $500 in qualifying purchases outside of IKEA, Traemand, and TaskRabbit within the first 90 days of account opening.
No annual fee. You’ll never pay an annual fee to have this card, which means you can keep it forever whether you use it or not.
Offers for New Account Owners
IKEA offers some incentives to sign up for a Visa account, in addition to earning rewards on purchases. When you open a new account, you get these extra perks:
$25 off your first purchase when you use your IKEA Visa the same day you open it
Free standard shipping and delivery on in-store IKEA purchases
Bonus IKEA reward certificate when you meet the minimum spending requirement
IKEA Visa Features & Benefits
The IKEA Visa isn’t geared towards travelers, so you don’t get any travel benefits. But this card does offer some built-in protections that you might value. Those include:
Emergency card replacement and cash disbursement
Convenient lost or stolen card reporting
Zero liability guarantee
Auto rental protection
Automatic enrollment in IKEA Family
IKEA Visa Credit Card Pros & Cons
Great rewards rate on IKEA, Traemand, and TaskRabbit purchases.
Earn rewards in popular spending categories outside IKEA.
Rewards Certificates issued automatically.
Includes free delivery (a value of $59 or more)
No option to redeem rewards outside of IKEA.
Rewards Certificates only credited in $15 increments.
Rewards Certificates expire after only 45 days.
No 0 percent introductory period or special financing options on IKEA purchases.
The APR is fairly high (even for applicants with excellent credit).
This card is best for
This card could be good for anyone who spends a decent amount of money on furniture, home decor, or home improvement or happens to be an IKEA brand enthusiast.
The rewards structure also gives you the flexibility of earning money back on everyday spending.
Additionally, this card can be rewarding if you rely on TaskRabbit or Traemand for furniture installation and assembly. You can earn 5% back on those expenses, more than you’d be likely to get with a traditional cashback rewards card.
IKEA enthusiasts who want a Visa card with the store logo
Regular IKEA shoppers who won’t have a problem redeeming rewards certificates within 45 days
This Card is not so good for:
Anyone who wants more options when it comes to redeeming their rewards
Infrequent IKEA shoppers
People who want rewards they can redeem for travel
IKEA Visa Credit Card One-Time Offer
This card doesn’t come with the typical one-time offer. Instead, you can get $25 off your first IKEA purchase. That’s not exactly a stellar bonus compared with what you might get from a regular cashback rewards card. But it’s similar to the kind of first purchase discounts or incentives you’ll find with other retail co-brand credit cards.
How to Earn Rewards
You have three ways to earn rewards with the IKEA Visa credit card:
Earn 5% back at IKEA, Traemand, and TaskRabbit
Earn 3% back on dining, groceries, and utility purchases
Earn 1% back on all other purchases
There’s no limit on rewards, so the more you spend, the more you can earn back. And since this card can be used anywhere Visa is accepted, you have the flexibility of using it to earn rewards on just about every purchase.
The IKEA Visa is designed for dedicated IKEA shoppers. This card could be an excellent choice for anyone who spends a lot of time and money shopping IKEA and wants to earn money back on those purchases.
It’s also good for someone who wants a go-to rewards card they can use anywhere. The card does fall short, however, when it comes to the APR and rewards redemption.