Ikea Visa Credit Card Review

GOBankingRates Score

4.0
Quick Take: The Ikea Visa credit card offers big benefits to loyal customers who make frequent purchases with the home furnishings retailer. Cardholders get $25 off their first Ikea purchase if it's $25 or higher, plus 5% back on all in-store and online Ikea purchases. It also offers 3% back on dining, grocery and utility purchases and 1% back on all other purchases. Cardholders also earn a $25 bonus when they spend $500 or more in qualifying purchases during the first 90 days.
  • Earning Rewards
    4.5
  • Redeeming Rewards
    3.5
  • Interest and Fees
    3.5
  • Customer Service
    4.5
How did we calculate this?

Pros

  • 5% back on all Ikea purchases
  • 3% back on dining, grocery and utility purchases
  • No limit to rewards
  • Quality customer service
  • No annual fee

Cons

  • Statement credits are the only way to use rewards, allowed in $15 increments
  • The purchase APR is high, making it less than competitive compared to other cards
  • No introductory APR
  • Rewards are only valid for 90 days

Ikea Visa Credit Card Overview

The Ikea Visa credit card is a great option for those who buy furnishings and home items from this retailer regularly. Loyal Ikea customers are rewarded with 5% back for in-store and online Ikea purchases. That same 5% reward boost applies if customers use the Ikea Visa credit card to pay for Traemand installation services or TaskRabbit assembly services.

Cardholders also earn rewards if they use the card outside of the retailer, generating 3% on dining, grocery store and utility purchases as well as 1% back on all other purchases. These rewards can only be redeemed in $15 increments on billing statements, and are only valid for 90 days.

With a purchase APR of 21.99%, the Ikea Visa credit card’s interest rate is relatively high compared to other credit cards. However, this card’s a perfect choice for Ikea lovers who don’t carry month-to-month credit card balances.

Features of the Ikea Visa Credit Card

Here’s a closer look at some of the features the Ikea Visa credit card offers.

Earning Rewards

Ikea loyalists who use this card to buy items from the retailer get 5% back for these purchases — that works out to at least $500 back for those who spend $10,000 or more per year. Aside from this loyalty perk, cardholders are also rewarded for spending on dining, grocery shopping and utility expenses, generating 3% back in these categories along with 1% back on all other purchases.

New cardholders can also take advantage of one-time bonuses, like taking $25 off their first Ikea purchase of $25 or more and landing an additional $25 bonus when they spend $500 outside of Ikea during the first 90 days of account ownership.

Redeeming Rewards

Cardholders don’t have many options in terms of redeeming the rewards they earn. They can only redeem rewards via billing statement credits in $15 increments, unlike other cash rewards cards that offer direct deposits and mailed checks. Also, Ikea Visa credit card rewards are only valid for 90 days. That means cardholders only have a few months to redeem their rewards, or they’ll risk losing them.

Interest and Fees

The Ikea credit card has a relatively competitive fee schedule. Compared to other cash-back cards, though, the interest the Ikea Visa credit card charges is on the high side. Here’s a look at the card’s rates and fees.

Type of Fee or APR Amount Charged
Purchase APR 21.99%
Balance Transfer APR 26.99%
Balance Transfer Fee $10 or 5%, whichever is greater
Annual Fee $0

Customer Service

A credit issuer for more than 30 years, Comenity Capital Bank — which is part of Bread Financial — services the Ikea Visa credit card. Cardholders can reach its highly knowledgeable customer service team by sending a secure message on Comenity’s website, calling the customer service line or mailing a letter.

Comenity offers live customer support 24 hours a day, seven days a week, but that availability may vary during holidays.

Comparable Cash-Back Credit Card Options

The Ikea credit card is a compelling option for someone who shops with the retailer regularly. Those who don’t shop at Ikea much may want to consider one of the following cards instead.

Chase Freedom Unlimited

Chase Freedom Unlimited cardholders earn 5% cash back on travel purchases made via Chase Ultimate Rewards, 3% back on restaurant and drugstore purchases and 1.5% back on all other purchases. New cardholders can also earn an additional 1.5% cash back on everything they buy — up to $20,000 in the first year — a bonus worth up to $300.

With Chase Freedom Unlimited, cardholders aren’t charged interest for the first 15 months on purchases or balance transfers. After that, the card has a purchase APR that ranges between APR. It also has a reasonable fee schedule and no annual fee.

Bank of America Unlimited Cash Rewards

Those who have the Bank of America Unlimited Cash Rewards credit card earn 1.5% cash back on all purchases. This card doesn’t restrict the rewards that cardholders can earn. Those who open a new account can gain an additional $200 in cash back if they spend $1,000 during the first 90 days of card ownership.

This Bank of America credit card has a 0% promotional interest rate on purchases for the first 18 billing cycles. Once the promotional period expires, a kicks in.

How To Apply

To apply for the Ikea Visa Credit Card, navigate to the appropriate page on the Ikea website and click on the “Apply Now” button. Follow the prompts to apply.

Who Is This Card Best For

The Ikea Visa credit card best suits shoppers who buy home furnishings and other items from this retailer regularly. For any Ikea loyalist, this card’s a great way to rack up rewards at a high cash-back rate for those purchases. Those who have this card should pay it off monthly to avoid high interest charges.

Final Take

If you are a frequent Ikea shopper, the Ikea Visa credit card is a good way to rack up rewards that you can apply to future purchases because of its high 5% reward rate. Just keep in mind that you can only redeem rewards in $15 increments on your billing statement and they expire within 90 days. You also can earn decent rewards outside of Ikea purchases for things like grocery shopping and dining out. However, keep in mind that you should keep a low balance on this card because of the high APR.

Ikea Credit Card FAQ

Here are some of the most frequently asked questions about Ikea's credit cards.
  • Is the Ikea Family card a credit card?
    • The Ikea Family card is intended for use with the retailer's rewards program and is not an Ikea credit card. Those who have an Ikea credit card are automatically enrolled in an Ikea Family membership, which includes free hot beverages and exclusive discounts, among other perks.
  • What bank services Ikea's credit cards?
    • Comenity Capital Bank services the Ikea Visa credit card as well as its Projekt credit card.
  • Where can I use my Ikea Visa credit card?
    • Cardholders can use the Ikea Visa card anywhere Visa is accepted.

Cynthia Measom contributed to the reporting for this article.

Information is accurate as of July 21, 2022.

Editorial Note: This content is not provided by Comenity Capital Bank. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Comenity Capital Bank.

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About the Author

Joshua Rodriguez is a personal finance and investing writer with more than 10 years of experience. He is the founder of CNA Finance. His work has been featured on U.S. News & World Report, Money Talks News and several other mainstream outlets. 
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