IKEA is a Swedish manufacturer of furniture, appliances, and other home furnishings. They are one of the hottest such retailers currently on the market, and they operate hundreds of stores around the world. If you are a regular shopper with IKEA, you may be interested in the IKEA credit card.
The IKEA retail credit card is an in-store card only. That means it can only be used at IKEA outlets for merchandise they sell. There are no rewards programs and no ability to use it like a standard Visa or MasterCard. It is issued by GE Money Bank.
You may apply online for the IKEA credit card by visiting their website. Consumers may be able to apply for the card in person while making a purchase at a retail outlet.
IKEA Credit Card Details
The APR for the IKEA credit card is a whopping 25.99%, variable based on the Prime Rate. Interest is calculated using the daily balance method. Since this is an in-store only card, rates and fees normally associated with standard credit cards do not apply.
IKEA promotes the fact that their card has no annual fee. However, a perusal of the terms and conditions reveals a monthly maintenance fee of $1.99 per month. This adds up to $23.88 annually which, for all intents and purposes, is still an annual fee.
IKEA Credit Card – Complaints of Deceptive Business Practices
Among all the online reviews of the IKEA credit card, very few, if any, are positive. To the contrary, there are many complaints against the company alleging deceptive business practices. Like the no annual fee claim, IKEA appears to employ other bait-and-switch tactics.
The credit card promotion claims an offer of no interest paid on purchases of $299 or more if the balance is paid in full within six months. What reviewers are complaining about is the fact that, if the six-month condition is not met, interest is charged retroactively to the date of purchase. IKEA has recently taken steps to publish the details of this promotion more clearly.
Another complaint arises from IKEA’s promotion of lower interest rates for in-store purchases exceeding $1,000. But according to their website, the consumer must request a lower rate at the time of purchase. The implication being that the salesperson will not offer the lower rate voluntarily. Compare this with other retail credit card offers that may better meet your needs now!