Sound like a deal to you? We talked to our resident finance expert and co-founder of
“Although the rewards or upfront discounts sound enticing, having a store card usually tempts us into spending more than we would have spent if we didn’t have the card. It’s a mindset thing more than a money thing,” says Malani. This makes sense, and it’s a huge reason why many retailers partner with card services to offer specialized credit programs for their customers.
According to Malani, “In the case of the Ikea deal, the sign-up bonus and spending rewards are actually a pretty good deal, but it’s worth noting that you can only cash in these rewards at Ikea. That’s incredibly limiting, especially for millennials who prioritize experiences over stuff. For example, a lot of our clients use their credit card rewards points for plane tickets, upgrading hotel rooms, etc. It doesn’t look like you’d be able to do that with the Ikea card.”
Moreover, although the Ikea Visa has no fees or deferred interest, it does come at a relatively high interest rate of 21.99% for everyone.
So, your bottom line? Store cards are not for everyone. But if you do choose one, pick an option that works with your lifestyle and needs. Ikea’s credit card is definitely all about giving back to those who shop for their homes, and it also builds upon the existing Ikea Family loyalty program. So, if you really love Ikea, it just may be worth it. If not? There are better cards worth your time.
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