IKEA® Visa® Credit Card: Is It Worth It?

The IKEA® Visa® Credit Card earns 5% cash back at IKEA Stores, 3% on groceries & dining, and 1% on everything else. With no annual fee and strong rewards, this card is worth looking into; however, is it truly worth it?
  • Annual Fee:
    $0
  • Regular APR:
    21.99% Variable APR
  • Rewards Rate:
    Up to 5% Back on Select Purchases

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IKEA is the world-renowned multination group that designs and sells ready-to-assemble furniture, kitchen appliances, and other home accessories that we have been using since 1943!

But did you know they also have an IKEA® Visa® Credit Card? This article will break down the Pros and Cons as well as the features and benefits of the credit card and then discuss some alternatives.

IKEA® Visa® Credit Card Pros and Cons

Pros:

  • You will earn 5% back in rewards on all IKEA, Traemand, and TaskRabbit purchases, 3% on utilities, grocery, and dining purchases, and 1% on all other purchases where Visa is accepted.
  • There is no annual fee on the IKEA® Visa® Credit Card.
  • You are automatically enrolled in the IKEA Family membership program. The Family Membership Program gives access to exclusive discounts.
  • You will get a $25 bonus when you spend $500 or more outside of IKEA, Traemand, and TaskRabbit within the first 90 days.
  • The credit card is a chip card for added security.
  • There is a $0 liability for any fraud use on the card.
  • Promotional APR allows up to 24 months at 0% interest.

Cons:

  • The rewards you earn expire faster than most other credit card rewards in just 45 days.
  • IKEA has another competing card, for uses within IKEA, with their IKEA® Projekt Credit Card. This will be discussed in more detail below.
  • The rewards you earn can only be used at IKEA as statement credits and only in increments of $15. For a store that most do not shop at often, the rewards program is a lot less appealing.
  • The APR can be as high as 23.99%, which is higher than most credit cards and does not offer any intro APR discounts.
  • Late payments are $37.
  • Balance transfers are $10 or 5%, whichever is greater.

What Is the IKEA® Visa® Credit Card?

IKEA® Visa® Credit Card is issued by Comenity Bank that can be used anywhere Visa is accepted. Carrying no annual fee and rewards such as 5% back on all IKEA, Traemand, and TaskRabbit purchases, 3% on utilities, grocery, and dining purchases, and 1% on all other purchases where Visa is accepted makes this IKEA® Visa® Credit Card appealing on the surface.

However, the biggest negative with the IKEA® Visa® Credit Card is the lack of ways to redeem the rewards where you are limited to redemption on IKEA statements only. And to make matters even worse, you can only redeem in $15 increments.

How Does the IKEA® Visa® Credit Card Work?

If you have not received a prequalification letter from IKEA, you can go ahead and apply for the IKEA® Visa® Credit Card on their website.

After filling in your basic credit/loan information, you will get an answer within a few minutes after submitting your information.

Since it is a credit card, the odds of approval greatly depending on your credit score, with scores above 670 having the best odds of being approved.

If approved, you will receive your IKEA® Visa® Credit Card in the mail within 10 business days. You can then use your card at any location that accepts Visa.

IKEA® Visa® Credit Card Features and Benefits

IKEA® Visa® Credit Card does offer some nice features and benefits. You are automatically enrolled in the IKEA Family, where you receive free coffee or hot tea at IKEA restaurants, opportunities to win IKEA gift cards, discounts on IKEA products, and more.

You also will have zero liability for fraud when using the card and an emergency card replacement if lost or stolen. Furthermore, once you are approved for an IKEA® Visa® Credit Card and spend $500 or more outside of IKEA within the first 90 days, you will receive a $25 IKEA gift card.

You will also receive free shipping and delivery from time to time which can be a huge savings since their normal shipping fees are anywhere from $29 to $59.

IKEA® Visa® Credit Card Rewards

You will earn rewards any time you use your IKEA® Visa® Credit Card and additional rewards for certain purchases. For additional percentage rewards, please read the “earning rewards” section.

Earning Rewards

With the IKEA® Visa® Credit Card, you will earn 5% back on all IKEA, Traemand, and TaskRabbit purchases, 3% on utilities, grocery, and dining purchases, and 1% on all other purchases where Visa is accepted.

Redeeming Rewards

Unfortunately, redeeming rewards is where the IKEA® Visa® Credit Card really starts to lose value. You can only redeem your rewards as statement credits against your IKEA statements. To make matters even worse, you can only redeem in increments of $15.

How Does the IKEA® Visa® Credit Card Compare?

Here are some alternative options to IKEA® Visa® Credit Card and how they compare.

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

Citi® Double Cash Card is another cash-back credit card that allows you numerous ways to earn rewards.

With the Citi® Double Cash Card, you will receive unlimited 2% cash back earnings on all purchases where Mastercard is accepted.

The rewards are broken down to 1% at the time of the purchase and 1% when you pay for the purchases.

Unlike the IKEA® Visa® Credit Card, Citi’s Double Cash card rewards do not expire, and they provide multiple ways to redeem your rewards, such as through a statement credit, converting your points to Citi ThankYou points, and cashback.

The Citi® Double Cash Card offers all of this while also offering 0% transfer APR for 18 months from the date of your first transfer.

#2. Chase Freedom Flex℠ ℠ vs IKEA® Visa® Credit Card

Chase Freedom Flex℠ is a Mastercard credit card with many perks. This is a card you want in your wallet, from its chip and touchless technology to a 0% intro APR for 15 months!

Once you start using the Chase Freedom Flex℠, you will earn a $200 cash back bonus if you spend $500 or more within the first 90 days.

Every time you use your Chase Freedom Flex℠, anywhere Mastercard is accepted, you earn cashback on rewards that rotate every quarter up to $1,500 cashback!

Chase Freedom Flex℠ has also partnered with DashPass to offer you a free 3-month subscription to DoorDash and Caviar, as well as partnering with Lyft, where you earn 5% cash back on Lyft rides! These are just some of the benefits and rewards that Chase Freedom Flex℠ offers.

#3. Amazon Prime Rewards Visa Signature vs IKEA® Visa® Credit Card

It seems like Amazon is venturing into every industry these days, and the credit card industry is no different! If you are an Amazon Prime member, you are eligible for the Amazon Prime Rewards Visa Signature card that can be used anywhere Visa is accepted.

You will earn 2% back on restaurants, gas stations, and drugstore purchases, while you earn 1% back on everything else.

As you could probably guess, if you use the Amazon Prime Rewards Visa Signature at Amazon companies, which now includes Whole Foods, you will receive 5% back with the potential of receiving an amazing 10% back on select products within Amazon.

If you rather have 0% APR on purchases instead of the 5% cashback, you can select that option. If the above perks were not enough enticement to get the Amazon Prime Rewards Visa Signature, they are currently offering an instant $100 Amazon gift card upon approval.

#4. IKEA® Visa® Credit Card vs IKEA® Projekt Credit Card

In a slightly confusing twist, IKEA offers another competing card, called IKEA® Projekt Credit Card, and other than not being able to use it outside of IKEA, the IKEA® Projekt Credit Card is actually a better card to use within IKEA.

Once you have the IKEA® Projekt Credit Card, you can choose 0% APR from 6 months to 24 months, depending on the purchase price.

There is no annual fee for the IKEA® Projekt Credit Card, but they also do not offer any additional rewards while their APR is in the middle of other credit cards at 21.99%.

IKEA Credit Card Frequently Asked Questions

Here are some frequently asked questions.

Is the IKEA® Visa® Credit Card Worth It?

If you often shop at IKEA, you will be able to monetize on their restricted rewards program, making the IKEA® Visa® Credit Card worth it. However, if you shop at IKEA infrequently, like most, you will lose out on the IKEA rewards that expire in just 45 days.

How Do I Qualify for the IKEA® Visa® Credit Card?

If you have received a prequalification letter, follow the instructions in the letter to see if you are approved for the IKEA® Visa® Credit Card.

If you have not received a prequalification letter, you can apply on their website by filling in the basic information you would fill in for any credit/loan. Since it is a credit card, the higher your FICO score, the better the odds of approval.

Can I Use My IKEA® Visa® Credit Card Anywhere?

Yes, you can use the IKEA® Visa® Credit Card anywhere Visa is accepted.

What Bank Does IKEA® Visa® Credit Card Use?

IKEA® Visa® Credit Card uses Comenity Capital Bank.

Bottom Line: IKEA® Visa® Credit Card Review

Although the IKEA® Visa® Credit Card can be used anywhere Visa is accepted, you are better off treating it more like a store-branded card due to their restricted rewards program.

If you are a frequent visitor of IKEA, then their rewards in the form of statement credits may appeal to you. Just keep in mind that the rewards do expire in just 45 days!

Other Store Credit Cards

Brian Latchford
Brian Latchford

Brian is a serial entrepreneur that loves financial technology and personal finance. From working with start-ups to creating his own recruiting company, Brian knows first hand what it takes to manage money. Throughout his career, Brian has become a respected writer covering topics in personal finance, business, and financial technology.