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IKEA credit cards

In Canada, IKEA offers the IKEA Credit Card which is a suitable payment option for individuals who regularly buy furniture, bathroom accessories, lightning products, kitchen utensils, or children’s items at IKEA. The card comes with a variety of beneficial features, among which are comparatively low monthly payments, lower interest rate for in-store purchases worth over $1000, online payment options, access to the Annual IKEA Catalogue, and more.

The credit card is featured with an annual fee of $21 and standard interest rate of 29.99 percent. While this credit card is a convenient payment option, it goes with a very high interest rate and carrying a balance is not recommended. For instance, if you carry a balance of $1500, you will be paying over $37 a month in interest and close to $450 a year. Additional fees include returned payment fee of $40 for checks and other instruments for debt payment, statement of copy fee of $3 and sales draft copy fee of $5. Special credit plans are also subject to fees occasionally, in compliance with the law. They appear on the first statement of account after the special plan has been implemented.

On the positive site, customers of IKEA receive advance sale notices and can take advantage of special promotions intended for cardholders only. They are also notified of special in-store sales.

In order to have one’s application approved, customers should have a good credit rating. Another condition is to be eighteen years old or over. In terms of restrictions, cardholders who fail to pay the promotional amount within a period of 90 days are required to pay finance charges. Cardholders can cover only the minimum monthly payments during the promotional period.

To apply for a credit card, customers can fill out an application in the store or apply through the website of IKEA. The applicant should fill in the required information such as name, address, and signature of the applicant and the co-applicant, amount of mortgage or rent payment, name of employer and position held, as well as income amount. The same information should be filled in for co-applicants, if any. By signing the application, the co-applicant agrees that IKEA opens and maintains a file containing personal information. IKEA may request information about the co-signor from the credit reporting bureaus, merchants, suppliers of services, collection agencies, and any other financial institutions he or she has financial relations with. These include bailiffs, advertising and marketing agencies, and others. The co-applicant also authorizes IKEA to exchange information with its partnering companies such as the American Health and Life Insurance Company and the Triton Insurance Company.

The application contains detailed terms and conditions (retail purchase and credit agreement) with information on the treatment of payments, revolving charge procedure, default, credit plans and special credit plans, etc. The agreement contains important information with regard to credit limits, stating that the issuer can change the credit limit of the cardholder periodically. The debt of the holder cannot exceed the specified credit limit, which is shown on each statement of account. The client is required to meet the minimum monthly payment. However, no charges are incurred for paying more than the minimum. The agreement can be terminated anytime by the issuer as long as relevant legislation is observed. Finally, it is important to note that according to the agreement, IKEA is not to be held responsible for any problems the cardholder has with purchases charged to the credit card. Even if the holder has a dispute or problem with a particular merchant, he/ she is still required to meet at least the minimum payment and pay off all credit card debt.

IKEA credit card reviews and credit card application details.

NameTypeInterest RateAnnual Fee
IKEA credit cardStore25.99%$21