Wayfair Credit Card review

Wayfair Credit Card review

Published: November 24, 2019
Published: November 24, 2019
Ratings Policy
Rewards Rating:
0.9 rating
0.9 rating
0.9 / 5
Rewards Value: 0.4
Annual Percentage Rate: 0.5
Rewards Flexibility: 1.4
Features: 1.0

In a Nutshell:

Offering an unimpressive rewards rate, sky-high APR and no noteworthy perks or discounts, the Wayfair Credit Card is best avoided for all but the most frequent Wayfair shoppers.

Rewards Rate

  • 3% back in Rewards Dollars on eligible Wayfair, Joss & Main, AllModern, Birch Lane and DwellStudio orders

Sign-up Bonus

  • $25 off your first order of $100 or more (cannot be combined with any other offer or discount)

Annual Bonus

None

Annual Fee
$0

Average Yearly Rewards Value ($1,325 monthly spend)
$168

APR
28.99%

Pros

  • Average rewards rate on purchases at Wayfair family of brands.
  • Includes free delivery on all eligible purchases.
  • Special financing available for purchases over $210.

Cons

  • Cannot be used outside of Wayfair family of brands.
  • Rewards can only be redeemed at Wayfair family of brands.
  • Must choose between rewards and special financing plans.
  • Free delivery is already available to all Wayfair customers on purchases over $49.
  • Special financing plans use risky deferred interest model.
  • The APR is very high (even for applicants with excellent credit).

Other Notable Features: Free shipping on all eligible purchases, special financing on eligible orders

The Wayfair Credit Card falls short as both a store rewards card and a credit-building option. Its underwhelming rewards rate on Wayfair purchases, restrictive redemption scheme, high APR and deferred financing options make it hard to recommend for anyone but the most devoted Wayfair shoppers.

If you frequently make large Wayfair purchases, you may see some value in the card, but you can most likely find a more useful and rewarding credit card. 

Decent rewards rate on Wayfair purchases

The Wayfair Credit Card offers 3 percent back in rewards on purchases made at Wayfair and Wayfair family brands Joss & Main, AllModern, Birch Lane and DwellStudio. This rate is about average for a store card, but it still falls short of the rate offered by cards like the IKEA Visa Credit Card and the Walmart Rewards Card, both of which earn 5 percent back.

Additionally, the card cannot be used for anything but Wayfair purchases. Though not uncommon for a store card, this is a severely limiting feature of the Wayfair Credit Card given that a direct competitor’s card — the IKEA Visa Credit Card — offers bonus rewards on purchases made at restaurants, gas stations, and more. Keep in mind also that rewards earned at Wayfair are not true cash back: Rewards can only be used as a discount on future orders from the Wayfair family of stores. More flexible cash back credit cards give you a choice in how you redeem rewards — whether as cash, statement credits or store credits.

Free shipping on all eligible purchases

The Wayfair Credit Card at least matches the IKEA Visa’s free delivery perk, offering free shipping on all eligible purchases. What qualifies as an “eligible purchase,” however, is a bit muddy. The card’s terms list flooring, large fixtures and “non-standard items” as exclusions.

While free shipping is a valuable bonus considering Wayfair is an online-only retailer, you don’t need the Wayfair Credit Card to save on shipping: Any order over $49 already qualifies for free shipping, with or without the Wayfair Credit Card.

Additionally, the card’s free shipping offer does not apply to returns. Unless the item arrived defective or damaged, you’ll have to pay the return shipping costs

Small but fair sign-up bonus

While the Wayfair Credit Card’s sign-up bonus of $25 off your first order of $100 or more is relatively small, it has a lower spend requirement than some other store cards. The IKEA Visa Credit Card, for example, requires you to spend $500 or more outside of the store in the first 90 days to earn a $25 IKEA Reward Certificate. That said, if you can qualify for a general rewards card, you can certainly do better, as many offer sign-up bonuses of $100 or more.

Choose between rewards and special financing

In addition to rewards on Wayfair purchases, the Wayfair Credit Card offers cardholders special $0 down, 0 percent financing options on larger purchases. Orders of $210 or more qualify for six-month financing and orders of $499 or more qualify for 12-month financing.

The catch is that the Wayfair Credit Card uses a risky deferred interest financing model. This means that if you fail to pay off your balance in full by the end of the financing period, you’ll be charged interest retroactively going all the way back to the date of the original purchase. While deferred interest offers can be useful if you need a bit of time to pay off a large purchase, they’re best avoided unless you’re absolutely sure you’ll be able to pay on time and in full.

In contrast, the Amazon Credit Builder lets you choose between deferred interest and Equal Pay financing, which allows you to spread out payments equally across 12 months and have your monthly payments included as part of the minimum payment requirement on your statement.

Additionally, the Wayfair Credit Card makes you choose between earning rewards and special financing. This means if you choose to finance a large purchase, you’ll earn nothing back in rewards. Similarly, if you choose to earn rewards on a large purchase, it will no longer be eligible for special financing.

See related: Don’t fall into the deferred interest trap

Sky-high APR

If you have any doubt about your ability to pay off your Wayfair Credit Card balance in full each month, you should pass in favor of a low-interest card, ideally one with a 0 percent introductory APR. The Wayfair Credit Card’s 28.99 percent APR is high even compared to most store-branded cards and is extremely high compared to the average credit card APR.

Not the best credit-building option

Many people apply for a store credit card because they’re hoping to build or rebuild their credit and may not qualify for a more lucrative rewards card. And it’s true that making small purchases with a store card and paying on time can be a smart way to demonstrate your creditworthiness.

Unfortunately, the Wayfair Credit Card falls short even for this use case. After all, some credit-building cards backed by a security deposit – like the Amazon Credit Builder (offering 5 percent back in rewards on Amazon.com purchases for Amazon Prime members) and the Discover it® Secured Card (offering 2 percent cash back at gas stations and restaurants and 1 percent on all other purchases) – offer a better rewards rate or more flexible redemption options.

Nonexistent perks

Aside from rewards on Wayfair purchases and free delivery – which is already an underwhelming perk considering all customers get free shipping on orders over $49 – the Wayfair Credit Card offers no special perks for cardholders.

How does the Wayfair Credit Card compare to other rewards cards?

As is the case with many retail cards, the Wayfair Credit Card’s rewards are useless outside of the store. If you’re looking for a more versatile card, there are a few cards that not only offer rewards on online purchases, but also allow you to use your cash back anywhere. Here’s a quick look at a few of our favorites:

US Bank Cash Visa

U.S. Bank Cash+TM Visa Signature® Card

Amazon Prime Rewards Visa Signature

Amazon Prime Rewards Visa Signature card

Bank of America Cash Rewards

Bank of America® Cash Rewards credit card

Rewards rate

  • 5% cash back on 2 categories of your choice ($2,000 purchase limit per quarter)
  • 2% cash back on your choice of one everyday category, such as gas stations or grocery stores
  • 1% cash back on other purchases
Rewards rate

  • 5% back on Amazon.com and Whole Foods purchases
  • 2% back on restaurant, gas station and drug store purchases
  • 1% back on other purchases
Rewards rate

  • 3% cash back on category of your choice (gas, online shopping, dining, travel, drug stores or home improvements and furnishings)
  • 2% cash back on grocery store and wholesale club purchases
  • $2,500 combined limit on 2% and 3% categories each quarter
  • 1% cash back on other purchases
Sign-up bonus

  • $150 if you spend $500 in the first 90 days
Sign-up bonus

  • $70 Amazon.com gift card
Sign-up bonus

  • $200 online cash rewards if you spend $1,000 in first 90 days
Annual fee

  • $0
Annual fee

  • $0 (requires $119 Amazon Prime subscription)
Annual fee

  • $0
Other things to know

  • Must select bonus category each quarter
  • 5% bonus categories include (but aren’t limited to) department stores, fast food, gyms, furniture stores, charity
Other things to know

  • No foreign transaction fees
  • Free 2-day delivery on many items bought on Amazon.com
Other things to know

  • No rewards options besides cash back
  • Change your choice category once per calendar month
  • View spending snapshot each month to help choose a bonus category

U.S. Bank Cash Visa Signature Card

A popular customizable rewards card, the U.S. Bank Cash Visa Signature Card offers 5 percent cash back in 2 bonus categories of your choice and 2 percent cash back in an everyday spending category of your choice. The long list of 5 percent bonus categories includes online shopping, furniture stores, department stores, fast food, movie theatres and more. The card allows you to change your category of choice once per quarter and comes with a quarterly purchase limit of $2,000 in 5 percent bonus categories.

Amazon Prime Rewards Visa Signature card

The Amazon Prime Rewards Visa Signature card doesn’t charge an annual fee, but requires an Amazon Prime membership. The card’s 5 percent rewards rate on Amazon.com purchases could offer a lot of value if you don’t mind shopping for furniture online, and Prime membership includes free two-day shipping on many items. You’ll also get a 5 percent rewards rate on Whole Foods purchases and a 2 percent rewards rate on gas, making it a decent option for everyday spending.

Bank of America Cash Rewards credit card

Another great choose your bonus category rewards card, the Bank of America Cash Rewards credit card offers 3 percent cash back in a category of your choice and 2 percent cash back on grocery store and wholesale club purchases (up to a combined $2,500 quarterly, then 1 percent). Along with furniture stores and online shopping, 3 percent bonus category choices include gas, dining, travel, drug stores and home improvements. You can change your bonus category choice once per calendar month, making the card ideal if your spending habits change from month to month.

Why get the Wayfair Credit Card?

  • You buy from the Wayfair family of brands frequently.
  • You can’t qualify for a more flexible rewards or credit-building card.
  • You can afford to pay off your Wayfair purchases in full each month.
  • You need to finance a large Wayfair purchase.

How to use the Wayfair Credit Card:

  • Use the card for all purchases at the Wayfair family of brands.
  •  Spend $100 at Wayfair to get a $25 Rewards Certificate.
  •  If opting for deferred financing, have a solid plan to pay back your purchases on time and in full before the financing period ends.
  • Pay off your purchases in full each month to avoid paying interest.

Is the Wayfair Credit Card worth it?

The Wayfair Credit Card offers a mediocre rewards rate on Wayfair purchases and deferred interest financing plans that are best avoided entirely given the card’s astronomical APR.

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