Ikea Family credit card review 

Earn factors on spending at Ikea and elsewhere.

This model new bank card from Ikea might pay you greater than many different reward and cashback playing cards, although incomes sufficient to redeem them at Ikea might take some time. Right here’s every thing that you must know.

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What’s the Ikea Household bank card?

This card from Ikea provides a few options: 0% curiosity on Ikea purchases and the flexibility to earn factors on spending at Ikea and elsewhere.

There’s no annual price for the cardboard, although you’ll pay curiosity on balances that aren’t coated by the 0% provides or the place different balances aren’t cleared in full every month.

How a lot are you able to earn?

There are two ranges of factors with this card. For those who use it at Ikea alongside the free Ikea Household card, you’ll get double factors for each £5 you spend. Which means you’ll have two factors relatively than one in probably the most half. Observe you’ll solely earn the factors whenever you spend a full fiver.

For those who store elsewhere you’ll get a single Ikea Reward level for each £10 you spend. Once more, that’s solely earned on a full tenner spent.

Factors are utilized to your card with seven days of creating the acquisition.

How a lot are Ikea factors price?

That is the place it will get a little bit difficult. There’s no set worth of a degree, because it varies relying on the way you redeem it.

So as an illustration, 200 factors is price £20 off giant order supply expenses, however you’ll want 250 factors to get the identical low cost in retailer. Or you may redeem factors for cash off meals, as an illustration 68 factors means that you can purchase a salmon meal within the cafe for 50p.

Some extent will final 18 months, so that you’ll should be positive you’ll earn sufficient and have a cause to buy on this time to keep away from dropping them.

Right here’s the total breakdown on redemptions:

How a lot do that you must spend?

The minimal redemption is 22 factors, getting you a Daim cake for 10p. You’ll must spend £110 in Ikea to set off this, or £220 for spending at different retailers.

For a reduction on deliveries you’ll must earn not less than 50 factors, which requires a spend of £250 at ikea or £500 elsewhere.

For cash off within the store itself, the bottom swap charge is 125 factors. That’s £625 or £1,250 respectively.

There are different methods to earn factors. For the reason that Ikea Household Card itself additionally earns a degree per £5 spent, you may truly half these totals for Ikea spend. They continue to be on the charges above for spending elsewhere.

And naturally, if in case you have a mixture of spending, it’ll be a hybrid of the 2.

What’s the ‘actual’ cashback charge?

Factors can getting a little bit complicated, so I discover it helps to view it as an equal cashback charge. Nevertheless, since there are completely different incomes ranges relying on the place you store, there are literally two of those for this card.

Let’s assume you’re procuring at Ikea, the place you’ll earn an additional level for every £5 spent. I’m not together with the purpose that comes with the Ikea Household card itself for a similar spend as you’d get that with out this bank card. Right here’s how that appears utilizing the £20 off makes use of of factors for example:

• 250 factors for £1,250 spend at Ikea = £20 off in retailer = 1.6% again
• 200 factors for £1,000 spend at Ikea = £20 off supply = 2% again

2% sounds fairly first rate – and it’s so much increased than you’ll get from some other cashback credit score or debit card.

And when you use the cardboard elsewhere, it additionally stands up properly in opposition to different playing cards. You’ll get one level per £10 spent elsewhere, which works out as:

• 250 factors for £2,500 spend elsewhere = £20 off in retailer = 0.8%
• 200 factors for £2,000 spend elsewhere = £20 off supply = 1%

1% again on a non-Amex card sounds nice. What’s to not like? Nicely in actuality it’ll be a much less. Keep in mind that you solely earn the factors on full £5 or £10 spends. So when you spend £4.99 at Ikea you’ll get no factors. And when you spend £9.99 you’ll solely get one.

For big purchases that received’t be an excessive amount of of a difficulty. For simplicity, lets assume you’re utilizing the factors to save lots of on purchases in retailer, which means you want not less than 125 factors for £10 off.

• 50 factors for £250 spend at Ikea = £5 off in retailer = 2%
• 50 factors from £254.99 spend at Ikea = £5 off in retailer = 1.96%

• 50 factors for £500 spend elsewhere = £5 off in retailer = 1%
• 50 factors from £509.99 spend elsewhere = £5 off in retailer = 0.98%

The issue is, you may simply cumulatively spend £500 on the cardboard and earn far fewer factors. For instance 51 purchases at £9.99 exterior of Ikea would imply you’ve spent £509.49 in complete – however you received’t have earned a single level.

So in actuality I’d put the precise earnings at a decrease charge.

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0% buy provide

You too can get interest-free provides on some spending with Ikea. It’s solely on spend above £99 and under £2,000, and the size of time at zero per cent varies on how a lot you spend:

• 3 months at 0% when you spend between £99 – £299
• 10 months at 0% when you spend between £300 – £1,199
• 20 months at 0% when you spend between £1,200 – £2,000

You’ve 10 days after buy to use the provide. Don’t neglect to make not less than the minimal reimbursement every month, in any other case you’ll get charged curiosity or have the provide eliminated.

Utilizing your Ikea factors

In your Ikea Household account you’ll have the ability to swap earned factors for a voucher. When you do that, you’ve 30 days to make use of the voucher. Ensure you know you’re going to make use of the voucher as you may’t swap it again.

How you can get the Ikea Household bank card

So long as you’re over 18 and a UK resident, you’ll must obtain the Ikea Monetary Companies app to use. You’ll additionally should be an Ikea Member of the family, however that’s free and simple to affix through the Ikea web site.

You’ll be credit score checked on software, so use the choice for an eligibility search within the app first to get an thought of whether or not you’ll be accepted or rejected.

In case you are accepted, you’ll get a digital card to begin utilizing right away, and this may be added to Apple or Google wallets.

Other ways to earn cashback at Ikea

Although a possible 2% charge might be interesting, it’s potential to save lots of extra through discounted present playing cards. The likes of Jam Doughnut, TopGiftcards, HyperJar and Cheddar provide between 3% and 5.3% cashback on these on the time of writing.

So purchase a present card through one in all these and also you’ll get the cashback right away, and you’ll spend it the way you need.

There are just a few caveats that you must be throughout, together with the dearth of client protections, and we’ve coated these in our guide to discounted gift cards.

And when you’re new to any of those apps, we’ve received some nice cashback site welcome offers (as much as £20) that’ll make it easier to save extra in your first store, whether or not at Ikea or one other retailer

Is the Ikea Household bank card price it?

Andy’s Evaluation

If you’re going to spend some huge cash at Ikea then utilizing this bank card will earn you a better charge than different playing cards, plus give you client protections that present playing cards don’t present.

However you’ll have to use the factors you earn at Ikea, which I feel is sort of limiting. Think about that factors expire after 18 months, there’s additionally a danger that when you is likely to be compelled to spend on the furnishings large to keep away from dropping them.

Personally I’d go for one more cashback card for many spending, and use an affordable present card for smaller Ikea purchases that you already know you received’t return.