IKEA has announced the launch of the IKEA Visa Credit Card, a new loyalty-driven credit card that allows customers to earn rewards on IKEA purchases and everyday spending needs such as gas, groceries and utilities. The IKEA Visa Credit Card, which will be available starting today (May 15), will allow customers to earn rewards on their everyday purchases. Rewards can be used to purchase IKEA products. The new card will be issued by Comenity Capital Bank.

Signup Bonus

• $25 off your first IKEA purchase when you open and use your IKEA Visa credit card
• $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 with your IKEA Visa credit card

The IKEA credit card has no annual fee.

See credit card page.

Earning Rates

• 5 % back in rewards on IKEA purchases as well as Traemand installation and TaskRabbit assembly services
• 3 % back in rewards on dining, grocery and utility purchases
• 1 % back in rewards on all other purchases made with your IKEA Visa credit card
• Rewards certificates are redeemed in $15 increments on your billing statement, and are valid for the next 45 days

Other Benefits

• Free standard shipping & delivery on in-store IKEA purchases made with your IKEA Visa credit card now through 8/31/18
• Zero liability
• Auto rental protection

Guru’s Wrap-Up

I don’t think it makes sense to get this card. The signup bonus is terrible. Earning rates are decent but when you look at the redemption side, it gets much worse. Rewards certificates are redeemed in $15 increments on your billing statement, and are valid for the next 45 days. You’re better off looking for the occasional sale on IKEA gift cards, and just save yourself a hard pull on this card.