Store Really Good Credit Cards
IKEA has a new credit card, but buyers should think twice before applying.
The IKEA Visa credit card offers several benefits that might seem attractive to the average IKEA shopper, including:
- Five percent refund on all Ikea purchases
- Five percent refund on TaskRabbit At-Home assembly services
- Three percent back on lunch, grocery, and utility bills
- One percent refund on all other purchases
- $ 25 discount on purchases at IKEA after they open the card
- Free Standard Shipping and Shipping on US Stores.
But here’s the interesting thing: you can’t use this cashback anywhere. You can only exchange it for Ikea. These are actually quite narrow offers, especially when compared to other money back cards. Unless you’re an avid shopper at Ikea, or eating meatballs for dinner at the store (what … you probably – hopefully? – no), this isn’t the best deal.
Plus , like many store cards, the annual interest rate is a ludicrous 21.99 percent, according to Marketwatch (the average interest rate is 16.94 percent).
So what are the best options?
While you should generally avoid retail credit cards with their high annual rates and deferred interest schemes, the Amazon card is pretty good, especially if you are a regular Amazon customer. It offers five percent cashback on Amazon and Whole Foods purchases, two percent back at restaurants, gas stations and pharmacies, and one percent on everything else.
While not technically a “store,” I include an Uber credit card because it fits into this special category of branded cards. And it offers decent rewards, including four percent cashback at restaurants, restaurants and bars, and three percent on travel, which is not bad. And if you shop regularly at Target or Costco , you might want to consider any card that offers generous rewards but can only be redeemed at the store.