IKEA Visa Credit Card Review

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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.

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$150 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®. These categories change all the time but often include options like restaurants, groceries, and home improvement stores. Since you earn 5% on your first $1,500 in purchases in these bonus categories each quarter you activate, taking advantage can be rather lucrative.

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.

Chase Freedom® 


Highlights
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.99-25.74%. Balance transfer fee is 3% of the amount transferred, $5 minimum
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate
  • Enjoy new 5% categories each quarter
  • Unlimited 1% cash back on all other purchases - it's automatic
  • Cash Back rewards do not expire as long as your account is open and there is no minimum to redeem for cash back.
  • Free credit score, updated weekly with Credit Journey℠
  • No annual fee

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 1.5% back on all purchases you make without having to worry about category bonuses. You also get a large signup bonus after meeting a minimum spending requirement.

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.

Chase Freedom Unlimited®


Highlights
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.99-25.74%. Balance transfer fee is 3% of the amount transferred, $5 minimum
  • Unlimited 1.5% cash back on every purchase - it's automatic
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • No minimum to redeem for cash back
  • Cash Back rewards do not expire as long as your account is open
  • Free credit score, updated weekly with Credit Journey℠
  • No annual fee

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.

Holly Johnson is an award-winning personal finance writer and the author of Zero Down Your Debt. Johnson shares her obsession with frugality, budgeting, and travel at ClubThrifty.com.

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