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Updated on Wednesday, May 30, 2018
IKEA lovers, rejoice! The Swedish home goods store has unveiled the brand-new IKEA® Visa® credit card that rewards you the most for spending on everything from the popular Billy bookshelf system to its iconic meatballs.
If you’re a regular shopper at IKEA, you’ll get 5% back in rewards on IKEA® purchases, including Traemand installation and TaskRabbit assembly services, 3% back in rewards on dining, grocery and utility purchases, and 1% back in rewards on all other purchases. That’s pretty appealing, because the higher cashback rate not only includes products, furniture and food but it also applies to companies that can help you assemble furniture for those who can’t make heads or tails of IKEA’s infamous instructions.
But be warned: As generous as the rewards are on this card, you can only spend them at IKEA — in $15 increments. So if you’re not an IKEA fan, consider another card that gives you more flexibility in how you spend your cashback rewards.
IKEA® Visa® credit card
- Regular Purchase APR
- 21.99% Fixed
- Annual fee
- Rewards Rate
- 5% back in rewards on IKEA® purchases, including Traemand installation and TaskRabbit assembly services, 3% back in rewards on dining, grocery and utility purchases, and 1% back in rewards on all other purchases.
Card benefits at a glance
The IKEA® Visa® credit card benefits
- Get 5% back in rewards on IKEA® purchases, including Traemand installation and TaskRabbit assembly services, 3% back in rewards on dining, grocery and utility purchases, and 1% back in rewards on all other purchases.
- The card has a $0 annual fee
- $25 bonus IKEA® Reward Certificate when you spend $500 or more outside of IKEA, Traemand and TaskRabbit within the first 90 days of account opening with your IKEA® Visa® credit card.
- Rewards earned on the IKEA® Visa® credit card are issued certificates that can only be used at IKEA.
- The card doesn’t offer an intro purchase or balance transfer APR.
- The card’s sign-up bonus isn’t as robust as other cards in the rewards category.
You have to love a credit card that offers both a $0 annual fee and pretty good rewards in popular categories. If you shop at IKEA regularly, then the rewards it offers can add up, especially since there’s no limit on how much you can accumulate. The rewards for dining and groceries are good, and including utility purchases in this tier is great, since most cards don’t even include this category for higher rewards.
What we like about the IKEA® Visa® credit card
One interesting thing about the IKEA® Visa® credit card is that you earn rewards on utility spending. It includes electric, gas (for home heating only), water, sanitary, telegraph services, television, radio and telecommunication services.
The IKEA® Visa® credit card gives new cardmembers a $25 bonus IKEA® Reward Certificate when you spend $500 or more outside of IKEA, Traemand and TaskRabbit within the first 90 days of account opening.
The card automatically enrolls you into the IKEA FAMILY loyalty program, which offers exclusive product discounts and special offers, along with free coffee or hot tea at its restaurants, 30 extra minutes in the Småland Time children’s play room and 90-day price protection on your purchases.
You also get access to Visa’s auto rental collision damage waiver when you use the card. You’ll be reimbursed for damage due to collision or theft up to the actual cash value of most rental vehicles.
Another great thing about the IKEA® Visa® credit card is its foreign transaction fee: None.
What we don’t like about the IKEA® Visa® credit card
The rewards you earn on this card comes with a big catch — you only get them as certificates issued in $15 increments, and they can only be redeemed at IKEA.
While the free shipping offer is nice, delivery areas are limited, depending on the location of the IKEA where the purchases were made. You’re warned that some items may take longer for delivery, and items ordered together may not arrive in the same box. You can’t have food, bistro products or plants delivered. And after Aug. 31, 2018, the offer ends.
If you’re not a big IKEA shopper, there are other cards that offer better rewards in the popular travel category than the IKEA® Visa® credit card. These cards also offer better sign-up bonuses, more flexibility in spending your rewards and more travel and purchase benefits.
An alternative to the IKEA® Visa® credit card
The information related to Citi® Double Cash Card – 18 month BT offer has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.
Citi® Double Cash Card – 18 month BT offer
- Regular Purchase APR
- 13.99% – 23.99% (Variable)
- Annual fee
- Rewards Rate
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
Not everyone is going to want to get the rewards offered by the IKEA® Visa® credit card, especially because you can only spend the rewards at IKEA. So for those who want to shop at more than just IKEA and get more flexibility in how they use their cashback rewards, the Citi® Double Cash Card – 18 month BT offer is a good option. (You can check out other top cashback credit card picks here.) It starts with No bonus, so the IKEA® Visa® credit card has the edge there. Your cash back can be redeemed for checks, statement credits or gift cards. There are no caps on the total amount of cash back you can earn with the Citi® Double Cash Card – 18 month BT offer.
The Citi® Double Cash Card – 18 month BT offer comes with benefits that are better than the IKEA® Visa® credit card, including purchase protection and auto rental collision damage waiver. You get access to Citi® Private Pass, which offers special access to buy tickets to events and VIP packages to concerts, sporting events and dining experiences, and Citi® Concierge for help with with travel, shopping, dining, entertainment and personalized service.
You also get access to Citi® Price Rewind, which does a 60-day search for a lower price on purchases made with your card. If a lower price is found, you may receive the difference up to $200 per item, and up to $1,000 per year. Terms apply.
There are other cards that offer higher rewards for travel, dining, groceries and gas. You also have to decide if the rewards on the Citi® Double Cash Card – 18 month BT offer are good enough.
So unless you are obsessed with IKEA, shop there regularly and don’t mind redeeming the IKEA® Visa® credit card’s rewards at the store, the Citi® Double Cash Card – 18 month BT offer may be a better option if you for you, since it offers much more flexibility on spending rewards and gives you more travel and protection benefits.