IKEA Visa Credit Card Review

Whether you need to furnish a new apartment on the cheap or you just love shopping for simple Swedish furniture, home goods, and tchotchkes, IKEA is the stuff of dreams. You can easily spend hours wandering the showroom and shelves of your nearest IKEA store, and their furnishings and household items are surprisingly affordable.

Over the years, the store has developed somewhat of a cult following, which is why you frequently hear of people driving hours to spend the day at one of their locations. But, the hysteria may be taken up a notch since IKEA has rolled out a new feature for loyal shoppers who want to earn rewards for their extensive in-store and online purchases. Now you can get an IKEA® Visa® credit card with the store’s logo right on the front.

But should you get the new IKEA® Visa® credit card? That’s an entirely different question. Keep reading to learn more about this new card, its offerings, and who it may be best for.

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.

Review: Score Huge IKEA Rewards with No Annual Fee

At first glance, it’s easy to see why someone would sign up for this card. You earn a solid 5% back on IKEA purchases, and this lucrative rate could pay off big if you’re often buying big-ticket items like sofas or office furniture, or planning a kitchen remodel in the near future. Keep in mind that IKEA also sells food, appliances, home décor, lighting, toys, organizational products, and almost anything else you can think of. If you’re someone who pops into their store to buy items regularly, the 5% back category can really pay off.

This card’s second tier of rewards is also intriguing. Currently, you’ll receive 3% back on dining, utility, and grocery purchases. This is obviously huge as many of us spend a ton of food, dining, and utility bills every month. The 1% category is pretty standard for all other purchases, but it’s certainly better than nothing. Of course, the entire rewards structure is much more attractive since this card doesn’t have an annual fee.

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Also, let’s not forget the initial bonuses you can earn for signing up. It starts with a $25 bonus off your first purchase after you sign up for the card and use it the same day. This offer was likely envisioned as a way to get people to sign up for the card on the spot when they’re checking out at the store.

There is also a $25 IKEA reward certificate when you make $500 in qualifying purchases within 90 days of account opening. For some reason, “qualifying purchases” means purchases made outside of IKEA, Traemand, and TaskRabbit in this case.

Finally, this card does offer a few welcome perks. For starters, you get emergency card replacement and cash disbursement along with zero liability for fraudulent purchases. You’ll also receive auto rental protection and automatic enrollment in the IKEA rewards program if you’re not a member already.

IKEA® Visa® Credit Card: Where It Falls Flat

If the IKEA® Visa® credit card was a traditional cash-back card that let you redeem points for cash back or gift cards, it would be a stellar deal. Unfortunately, the redemption options for this card are limited since you can only cash in your points for IKEA “rewards certificates.” These certificates are offered to you in $15 increments on your billing statement, and they’re valid for 45 days.

The most inconvenient thing about this policy is the fact you cannot redeem your reward certificates for past IKEA purchases. Instead, they work like coupons, meaning you can only use them for discounts off future purchases at IKEA. If you’re someone who doesn’t visit your local IKEA store every 45 days, you may struggle to use your rewards certificates before they expire.

It’s bad enough you can’t redeem your rewards for cash back, gift cards, or anything other than IKEA rewards certificates, but the 45-day expiration rule really crosses the line. There are many rewards cards that allow your rewards to expire at a certain point, but most offer at least a 12- to 24-month timeline. Having only 45 days to use your rewards certificates is downright stingy, and not very practical for busy people.

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Also, let’s be honest about the signup bonus this card offers. You get a $25 discount for signing up in the store, and a $25 signup bonus if you make $500 in qualifying purchases within the first 90 days of account opening. This signup bonus is entirely “meh” and not very attractive considering the bonuses some comparable cash-back cards offer.

Who This Card Is Good For:

  • 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
  • People who don’t want cash-back, gift cards, or travel rewards

Who Should Pass:

  • Anyone who wants more options when it comes to redeeming their rewards
  • Infrequent IKEA shoppers
  • People who want rewards they can redeem for travel

Don’t Confuse This Card with the IKEA Projekt Credit Card

In addition to the IKEA® Visa® credit card, IKEA offers an in-store card for big purchases. This card isn’t a VISA card, but it does allow you to repay big IKEA purchases over time.

With the IKEA Projekt Card, you can pay off a single purchase of $5,000 or more over 60 monthly payments at the low APR of 4.99%. There is no annual fee for this card, but there are no rewards, either.

We mention this here because we don’t want you to get the two cards confused. Where the new VISA card works for any retailer where Visa is accepted, the new IKEA Projekt Credit Card is for on-store purchases only.

Final Thoughts

Here’s our advice: If you want a cash-back credit card, get one that will actually help you earn rewards. There are tons of options out there, including ones that offer 2% back or more without an annual fee. Several cash-back cards even offer higher rates of return on groceries and dining, but with more options when it comes to redeeming your points.

With the IKEA card, you really just get coupons off future IKEA purchases. That might be fine for people who shop in IKEA all the time, but most people want more out of their rewards.

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