Wayfair Mastercard review

Wayfair Mastercard review

Published: September 19, 2020
Published: September 19, 2020
Ratings Policy
Rewards Rating:
1.5 rating
1.5 rating
1.5 / 5
Rewards Value: 1.7
Annual Percentage Rate: 0.7
Rewards Flexibility: 1.4
Features: 1.0

In a Nutshell:

Though it offers a decent rewards rate, the Wayfair Mastercard carries a sky-high APR and no noteworthy perks or discounts, and is best avoided for all but the most frequent Wayfair shoppers.

Rewards Rate

  • 5% back in Rewards Dollars on eligible Wayfair, Joss & Main, AllModern, Birch Lane and Perigold orders
  • 3% back on grocery store purchases
  • 2% back on online purchases
  • 1% back on all other purchases
Average

Sign-up Bonus

$40 off your first order of $250 or more (cannot be combined with any other offer or discount)

Poor

Annual Bonus

None

Poor

Annual Fee
$0

Excellent

Average Yearly Rewards Value ($1,325 monthly spend)
$256

Fair

APR
26.99%

Poor

Pros

  • Solid rewards rate on purchases at Wayfair family of brands.
  • Also offers rewards on everyday shopping at grocery stores and online shopping.
  • Includes free delivery on all eligible purchases.
  • Special financing available for purchases over $210.

Cons

  • Rewards can only be redeemed at Wayfair family of brands.
  • Must choose between rewards and special financing plans.
  • Cannot earn bonus if your first purchase uses special financing.
  • 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).
Fair

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

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Despite a solid rewards rate on Wayfair purchases and on some everyday spending, the Wayfair Mastercard from Citi falls short as both a rewards credit card and a credit-building option. Its 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, even with damaged credit.

Decent rewards rate on Wayfair purchases

Previously offered by Comenity Bank, Wayfair’s credit cards are now issued by Citi. The issuer offers two versions of the Wayfair credit card: the Wayfair Mastercard, an open-loop rewards card that can be used anywhere Mastercard is accepted, and the Wayfair Credit Card, which can only be used at Wayfair’s family of brands.

Both versions of the card offer 5% back in rewards on purchases made at Wayfair and Wayfair family brands Joss & Main, AllModern, Birch Lane and Perigold. This rate is about average for a store card, matching the rate offered by cards like the IKEA Visa Credit Card and the Walmart Rewards Card, both of which earn 5% back.

Additionally, if you qualify for the Wayfair Mastercard version of the card (as opposed to the store-only Wayfair Credit Card), the card can be used for purchases outside of Wayfair, where you’ll earn 3% back in rewards on grocery store purchases, 2% back on online shopping and 1% back on all other purchases.

While these are fair rewards rates, particularly for a co-branded store card, keep in mind that rewards earned with the Wayfair cards 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 Mastercard also 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: Most orders over $35 already qualify 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 $40 off your first order of $250 or more is relatively small, it has a lower spend requirement than you’ll find on 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 Wayfair financing

In addition to rewards on Wayfair purchases, the Wayfair credit card offers cardholders special $0 down, 0% APR financing options on larger purchases with the retailer. Here’s how the card’s financing offers break down, through Jan. 20, 2021:

  • 6 month financing on orders over $199
  • 12 month financing on orders over $499
  • 18 month financing on orders over $1,499
  • 24 month financing on orders over $2,999

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. If you take advantage of special financing on your first purchase of $250 or more, you’ll also miss out on the card’s bonus offer of a $40 discount.

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. Both versions of the Wayfair credit card carry a 26.99% variable APR, which is high even compared to many store-branded cards and is extremely high compared to the average credit card APR.

Approval odds and credit-building utility

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.

The Wayfair credit card could work for this purpose, as store credit cards are typically easier to qualify for than general rewards cards. But since its rewards can only be used at Wayfair’s family of brands, the Wayfair credit card doesn’t make for the best long-term option. After all, some credit-building cards backed by a security deposit – like the Discover it® Secured Card (offering 2% cash back at gas stations and restaurants and 1% on all other purchases) – offer more flexible redemption, as well as the chance to graduate to an unsecured card with responsible use.

On the plus side, you can check if you pre-qualify for the Wayfair credit cards with only a soft pull of your credit report, which has no impact your credit score. Applicants are considered for both the open-loop Wayfair Mastercard and store-only Wayfair Credit Card when they apply and, if approved for both, can choose which they want to move forward with.

See related: How to prequalify for a Citi credit card

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 $35 – the Wayfair Credit Card offers no special perks for cardholders.

How does the Wayfair Mastercard 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

  • $100 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 Mastercard?

  • 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 Mastercard:

  • Use the card for all purchases at the Wayfair family of brands and at grocery stores and on online shopping.
  • Spend $250 at Wayfair to get $40 off.
  • 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 Mastercard worth it?

The Wayfair Credit Card offers a decent rewards rate on Wayfair purchases and some other everyday spending, but its restrictive rewards scheme is a major shortcoming. And while they may be useful if you’re sure you can pay off your balance before the end of the promotional period, this card’s deferred interest financing plans are risky given the card’s very high APR.

*All information about the Bank of America Cash Rewards credit card has been collected independently by CreditCards.com and has not been reviewed by the issuer. This card is no longer available through CreditCards.com.

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