Everything You Need to Know on the IKEA Credit Card 2014
IKEA is one of the most recognizable store names in the world for finding quality but affordable household items and furniture that is easy to assemble by the do-it-yourselfer.
IKEA carries everything from furniture to appliances, textiles, knick-knacks, and nearly anything in between, and is popular for those seeking value, clean lines, and high function. Purchasing goods at IKEA is simple in a retail outlet store or online, but when it comes time to pay you may have an additional option available for consideration - the IKEA credit card.
What is the IKEA Credit Card?
IKEA's credit card is a branded store card that can be used to pay for for goods purchased at IKEA. It is similar to any other branded department store card, in that the credit is extended by IKEA for use in its store. This can offer customers one additional way to make a purchase and pay over an extended period of time when the initial cost is not affordable for them. The card is available market by market, so you may not find an application at all stores. Beware, however, that as with any store card, an interest charge will be included for balances not paid within the grace period.
Minimum Payments and Interest
The card will come with a set minimum payment amount. This may vary from time to time, but an example from a current offering is 3% of the outstanding balance, with a $10 minimum. That means that for a $1,000 balance you might expect to pay somewhere around $30 minimum, but due to interest charges that will be assessed when the full balance is not paid by the due date, a higher payment is strongly recommended.
The IKEA card's interest rate is normally quite high as is true with other store cards. Because of this, paying off a balance as quickly as possible will keep the cost of your purchase low. Expect to pay well over 20% interest per year on the card. To put this in perspective, a purchase of $800 at a rate of 29.99% would cost you about $19.71 in interest and demand a minimum payment of $24.60 at a 3% repayment rate.
Additional Card Notes
The exact terms of the card can vary from location to location, so be sure to review the application properly when first applying. An annual fee may apply with this card, though it has been traditionally zero or rather low. Also, additional fees for events like late payments are applicable, but can be avoided by paying timely.
An IKEA credit card is also a great way to establish or repair credit for customers who do not have other accounts but may qualify for the card. By making affordable purchases and paying them off before making new purchases, a credit history can be established that will lead to other opportunities down the road. It is generally easier to qualify for a store card than a bank card.
Benefits of an IKEA Credit Card
When you are an accountholder of the IKEA store card there are some benefits that are worthwhile, particularly if you can avoid paying excess finance charges by paying balances in full. Cardholders will get exclusive invitations to preview some of the store sales, and get a fresh copy of new catalogues before they are even stocked in the stores. If you are a frequent shopper at IKEA and like to peruse the catalog, these are nice benefits.
IKEA may also send you quarterly copies of the “Room” magazine to your home for some home design inspiration, and you will get company news and updates in real time. Your local store may send cardholders information so that they can easily keep up with what’s up at their store, including special local events or promotions
IKEA Credit Card Offers
New cardholders may qualify for special one-time offers, such as interest-free credit for a certain period of time on a purchase, which may make it worth applying for that particular purchase. There may also be in-store promotions or offers available just to cardholders. Some customers like to hold the card just for these occasional offers whether they plan to actually use it for the purchase or pay by some other means.
The IKEA credit card is one way to make a purchase to decorate or furnish your home in order to spread out payments over a period of time. With flexible credit limits and repayment terms, it is a reasonable way to keep in touch with your favorite store and make purchases from time to time. As long as you don’t let the high interest charges draw out the repayment period for too long, it is a viable store card to use for your future IKEA purchases.