Posted by William Charles on May 16, 2018
Credit Cards

Published on May 16th, 2018 | by William Charles

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IKEA Visa Credit Card by Comenity – 5% Back On IKEA, 3% On Grocery, Dining & Utility

Comenity Bank has launched a new credit card, this time in partnership with IKEA. Let’s take a look at the new card.

Card Basics

  • Card earns at the following rates:
    • 5% back in rewards on IKEA purchases (including Traemand installation and TaskRabbbit assembly)
    • 3% back in rewards on dining, grocery and utility purchases
    • 1% back in rewards on all other purchases
  • Sign up bonus of $25 off your first IKEA purchase after card opening. An additional $25 IKEA reward certificate when you make $500 in qualifying purchases outside of IKEA, Traemand and TaskRabbit within 90 days of account opening
  • No annual fee
  • Free standard shipping & delivery on in-store IKEA purchases made now through 8/31/18

Rewards

Looks like rewards are automatically issued after you hit $15 in rewards and are in the form of IKEA certificates.

Our Verdict

If this card earned cash back instead of IKEA rewards it might actually see some use as 3% uncapped on grocery store purchases is useful for some people and the other 3% categories aren’t terrible even if there are better options (best dining cards here). Unfortunately it’s in the form of IKEA rewards so that will be significantly less useful for most people. Even worse is that the rewards expire after 45 days and are automatically issued (so you can’t just save them up until you need to use them). If you’re still interested then I’d recommend reading our detailed post on Comenity Bank credit cards found here.

Hat tip to ramalama-ding-dong & reader Mike H



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One issue even for those who would have use for credit at Ikea is that the reward certificates expire only 45 days after (auto) issuance

wow that’s a major deal breaker. who needs to go to IKEA every <=45 days?

Meatball luvers

Meatballs. Lots and lots of Swedish meatballs

Those who shop at Ikea frequently, due to the 45 day expiration of certificates, will probably find a huge use out of this card. If this was cash back, this could be my daily driver. In fact, for 1 credit card users, this would be an ideal card.

Comenity will be reaping up all the breakage of this reward program. This will be a hard pass for most people.

Does Ikea sell $500 Visa Gift Cards?

No, they only sell them in increments of $850 and $1750 – both with a $2.15 fee. To answer your next question, yes, you can even have them converted into Money Orders while you eat meatballs.

LOL

Better to use the US Bank Cash + with the 5% cash back at Furniture Stores (which includes IKEA)

Free shipping on in-store purchase is a thoughtful bonus.

I can think of a 1-2 times I would have used it and can think of quiet a few times friends would have used it.

IKEA targets first time furnishers – college, post-college, first family. My guess is a not small portion of them go shopping in mid size/compact cars with friends/family, eat some meatballs, buy a table and get to play clown car on the way home. Toss in a car seat or two and even a SUV wouldn’t be big enough.

Use the free shipping and it becomes a fun(ner) social outing with the crew/kids/grandparents. Happy customers should mean more sales.

what do they mean by utility?

Natural gas, Water, electricity, etc.

I will apply if this card is actually made out of WOOD. I am tired of all metal cards.

Maybe LDF.

Fill up the house with IKEA stuff for next 3 Generations!

I HATE COMENITY.

My wife insisted to get a Crate&Barrel card from Comenity, which doesn’t have automatic payment options. I have to check periodically to make sure I am not missing payments. And the validity of those reward certificates is 3 months. This is extremely short. Now we have to buy something from C&B once a while. We are trapped to spend more money.

If this IKEA card essentially has the same rules, it’s not even as good as the C&B card. (At least the C&B offers 10% cb, instead of IKEA’s 5%.) Seriously, who goes to IKEA every less than three months?

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