There’s a new means to purchase your Hemnes dresser, Ektorp couch or Rens sheepskin rug.
On Tuesday, the corporate introduced the Ikea Visa
credit card. It will supply 5% again in rewards on all Ikea purchases, together with the Traemand model kitchen set up and at-home meeting providers by way of the errand service TaskRabbit (which Ikea owns).
But rare Ikea consumers could possibly benefit from different rewards. The card additionally provides three% again on eating, grocery and utility payments — on par with some other popular reward cards, together with the Sam’s Club Mastercard, which presents three% again on eating and journey, and the American Express Blue Cash Preferred card, which gives three% again at U.S. fuel stations and a few department shops.
But there’s one main caveat: The Ikea card isn’t providing money again that can be utilized anyplace. The rewards have to be solely redeemed at Ikea. What’s extra, it expenses a comparatively excessive rate of interest of 21.99%. The common credit-card rate of interest is 16.94%, in response to personal-finance web site Bankrate.
On the plus aspect, the Ikea credit card has no charges, and in contrast to another retailer credit playing cards doesn’t cost “deferred interest,” a mannequin that’s typically complicated and probably costly for shoppers. New cardholders will even get a $25 bonus towards their first buy on the card. And all cardholders will obtain free commonplace delivery and supply for in-store purchases made in shops within the U.S. when utilizing the card, via Aug. 31.
And the card might attraction to shoppers who’re new to constructing credit or have to restore their credit, stated Jacqueline DeChamps, chief working officer at Ikea U.S. “We’ve worked very hard to ensure our customers can have meaningful lines of credit,” DeChamps stated.
The Swedish firm is the newest well-known retailer to roll out its personal credit card in current months, as corporations attempt to construct loyalty and model recognition amongst shoppers. Apple
is reportedly developing a credit card with the bank Goldman Sachs
Uber and Amazon have additionally unveiled their very own playing cards.
Uber’s card provides four% money again on restaurant, takeout and bar purchases and three% on journey, whereas Amazon’s
credit card — which is just for subscribers to the $119-a-year Amazon Prime program — provides 5% again on Amazon and Whole Foods purchases.
Ikea spent two years creating its new credit card, DeChamps stated. The firm partnered with knowledge firm Alliance Data to create the card, which is issued by way of Comenity Bank.
The credit card is one among a slew of strikes IKEA has made to encourage clients to go to its shops extra typically, she added. Ikea additionally final yr launched a service referred to as “Click & Collect,” which shoppers use to purchase gadgets on-line after which decide them up in retailer. That service prices $5, however shoppers obtain a $5 Ikea present card they will use for future purchases.
Of course, credit playing cards can put shoppers in peril of overspending. Consumers who don’t pay their credit-card payments in full every month pays lots of in curiosity and create a debt that’s onerous to flee from. Americans collectively have more than $1 trillion in credit-card debt.