Wayfair Credit Card Review: Only for Frequent Wayfair Customers
Wayfair Credit Card
Are you in the process of refreshing your home’s furniture? If you’d like to, the Wayfair Credit Card is definitely worth a look.
The Wayfair Credit Card gives cardholders both cash-back rewards that you can use toward furniture purchases at Wayfair and its partner stores, as well as the option to finance large purchases over time.
If you don’t pay the balance in full by the end of the 0% interest period, though, you’ll be hit retroactively with all interest accrued during the promo period. Read on to find out if the Wayfair Credit Card is right for you. And, if it is, we’ll give you some tips to get the most value out of it.
Wayfair Credit Card Quick Review
Here are the highlights of the Wayfair Credit Card:
- Annual Fee: $0
- APR: 29.24%
- Sign-Up Bonus: $40 off your first order of $250 or more
- Key Benefit: Get 3% back in rewards on all purchases at Wayfair.com, Joss & Main, AllModern, BirchLane or DwellStudio to be redeemed at any of these stores
- Financing Offer: Special $0 down financing at any of the listed stores:
- 6-month financing for purchases of $250 or more
- 12-month financing for purchases of $500 or more
- 18-month financing for purchases of $1,500 or more
- Minimum Payment: If your balance is less than $25, then the full balance. If your balance is $25 or more, the greater of $25 or 3.5% of the new balance.
- Other Fees: Up to $38 for late payments. Up to $38 for returned payments. $6 for copies of statements, sales/credit drafts, or checks/money orders.
Why Apply for the Wayfair Credit Card
If you like to do most of your shopping online, the Wayfair Credit Card can be a tempting option.
You shop a lot at Wayfair
By using the Wayfair Credit Card, you can earn 3% cash back on all of your purchases at Wayfair or its partner stores. You can only use this cash back towards future purchases at one of these stores, so only people who do a lot of shopping at Wayfair will get the full benefit.
You need more time to pay off large furniture purchases
It’s not unusual to spend thousands of dollars to fill a new apartment or home with everything you need, and The Wayfair Credit Card payment plan gives you access to a special financing deal on large purchases. For purchases exceeding $1,500, you can take up to 18 months to pay them off without incurring any interest, provided you pay the full balance within that time.
Wayfair Credit Card: Drawbacks and Downsides
Though the Wayfair Credit Card seems like a strong choice, there are some downsides and dangers to the card.
Poor sign-up bonus
When you sign up for the Wayfair Credit Card, you’ll earn a sign-up bonus of $40 off your first order of $250 or more. The bonus doesn’t apply to smaller purchases. In addition, you can’t combine that discount with the card’s special financing plan. Given that many other credit cards offer sign-up bonuses worth hundreds of dollars, this offer is underwhelming.
The special financing is a dangerous deferred interest plan
The fine print of the cardholder agreement includes a line that states that if you don’t pay off the full balance of your purchase within the 0% interest period, you owe all the interest that you would have paid had you not chosen the special financing deal. This means you have to pay off the full amount before the special financing period ends, or you get no benefit at all. In fact, you’ll get a surprise bill for an amount much larger than you expected.
Wayfair Credit Card Alternatives
The Wayfair Credit Card certainly isn’t for everybody. If you’re looking for a card to help with your online furniture shopping, check out these alternatives:
Amazon Rewards Visa® Signature Card
If you want a more versatile credit card, but still like shopping online, consider the Amazon Rewards Visa® Signature Card. You can use this credit card anywhere, but using it at Amazon earns the best rewards. If you have Amazon Prime, purchases at Amazon and Whole Foods will earn you 5% cash back. You’ll also earn 2% cash back at gas stations, restaurants, and drugstores, and 1% back everywhere else. Amazon also sells furniture, too, so this card can let you earn more rewards when buying furniture online.
Capital One® Quicksilver® Cash Rewards
If you’re looking for a good financing deal, consider the Capital One® Quicksilver® Cash Rewards. It offers a flat 1.5% cash back on all purchases. That’s only half the rewards rate on the Wayfair Credit Card, but the Capital One® Quicksilver® Cash Rewards card works anywhere. It’s a good choice if you want to shop at stores other than Wayfair.
The card comes with 15 months of interest-free financing from the time you open your account, regardless of the how much you spend. More importantly, you won’t have to pay interest retroactively if you don’t pay off the balance before the special financing period ends. Unlike the Wayfair Credit Card, this is a true 0% APR period, and not a deferred-interest period. As a bonus, you can earn a $150 cash bonus if you spend $500 within the first three months of account opening.
Bottom Line: Should You Apply for the Wayfair Credit Card?
The Wayfair Credit Card is an underwhelming store card. Its benefits aren’t terribly impressive when compared to more versatile cards, so it only makes sense if you regularly make large purchases at Wayfair. Even then, you might find another cash-back rewards card that can do a similar job—along with earning rewards elsewhere.