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.

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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.

In this article

    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.

    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.

    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

    kids at ikea credit card

    How Does It Compare to Other No-Fee Cash-Back Cards?

    While the IKEA® Visa® credit card may make sense for certain consumers, there are plenty of better options out there. While the IKEA card does offer a solid rate of rewards, its very limited redemption options make it a poor choice for the majority of consumers. Consider how it stacks up to the Chase Freedom® using the chart below:

     Chase Freedom®IKEA® Visa® credit card
    Annual Fee$0$0
    Points Earned on Everyday Spending1% back on all purchases1% back on all purchases
    Bonus Categories5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate5% back in rewards on IKEA purchases; 3% back in rewards on groceries, dining, and utilities
    Signup Bonus$200 Bonus after you spend $500 on purchases in your first 3 months from account opening$25 bonus after you spend $500 on qualifying purchases within 90 days of account opening
    Redemption OptionsRedeem for statement credits, Amazon.com purchases, gift cards, or travelRedeem in $15 increments for IKEA rewards certificates

    As you can see, the Chase Freedom® offers a much larger signup bonus and many more ways to redeem your rewards. With the option to get statement credits, you could redeem your rewards for IKEA purchases if you wanted to. The difference is, you wouldn’t have to.

    You also get rotating 5% categories with the Chase Freedom®. Currently you can earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.

    At the end of the day, this just goes to show that the IKEA® Visa® credit card is really just a card for IKEA enthusiasts. You have to be willing to shop in their stores at least once every 45 days if you don’t want your rewards to go to waste, and you only earn 5% back on IKEA purchases anyway. The 3% categories are solid, but again, you can’t redeem your rewards for cash-back or anything other than more IKEA stuff. Most people would dislike having only one option unless they planned to shop heavily at IKEA stores for the foreseeable future.

    Want More Options for Your Rewards? Consider This Card Instead

    We already mentioned how the Chase Freedom® might be a good alternative to the IKEA card, but you could also consider this card’s cousin — the Chase Freedom Unlimited®. The unlimited version of this card lets you earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back.

    Finally, the Chase Freedom Unlimited® lets you redeem your rewards in several ways. You can cash them in for statement credits to erase your purchases, or you can redeem them for gift cards. You can also use them for purchases on Amazon.com or for travel through the Chase Ultimate Rewards portal. This card also comes with no annual fee.

    Please Note: Information about the Chase Freedom® have been collected independently by TheSimpleDollar.com. The issuer did not provide the details, nor is it responsible for their accuracy.

    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.


    Editorial Note: Compensation does not influence our recommendations. However, we may earn a commission on sales from the companies featured in this post. To view our disclosures, click here. Opinions expressed here are the author’s alone, and have not been reviewed, approved or otherwise endorsed by our advertisers. Reasonable efforts are made to present accurate info, however all information is presented without warranty. Consult our advertiser’s page for terms & conditions.

    Please Note: Information about the Chase Freedom® has been collected independently by TheSimpleDollar.com. The issuer did not provide the details, nor is it responsible for their accuracy.

    Holly Johnson

    Contributing Writer

    Holly Johnson is a frugality expert and award-winning writer who is obsessed with personal finance and getting the most out of life. A lifelong resident of Indiana, she enjoys gardening, reading, and traveling the world with her husband and two children. In addition to The Simple Dollar, Holly writes for well-known publications such as U.S. News & World Report Travel, PolicyGenius, Travel Pulse, and Frugal Travel Guy. Holly also owns Club Thrifty.