Maximizing Your Furniture Purchases: A Guide to Credit Cards from Major Retailers

When you’re planning a large furniture purchase, using the right store credit card can help you save money or finance your purchase over time. Many furniture retailers offer store-branded credit cards with rewards, discounts, and special financing options. In this guide, we’ll walk you through the credit card offerings from major furniture sellers, including the key benefits of each card, and help you decide when it makes sense to use one.

Sneak Peek: Store credit cards can be a great way to save on large furniture purchases, especially with rewards or 0% APR offers. The Amazon Store Card stands out for its 5% cash back on all purchases. However, these cards are only worth it in specific situations—such as financing major purchases or boosting your credit utilization. If no longer needed, they can be canceled with minimal credit impact.

Comparing Store Credit Cards from Major Furniture Retailers

Amazon Store Credit Card: Best for Prime Members

• What You Get: Amazon Prime members get 5% cash back on all Amazon purchases, including furniture. Non-Prime members can access special financing for larger purchases. No annual fee.
• Affiliated Brands: Amazon only, but their vast selection of furniture makes this card appealing.
• Ideal For: Frequent Amazon shoppers who want ongoing rewards and occasional financing.
• Check out Amazon's Credit Card for more information

Wayfair Credit Card: Flexible Financing or Rewards

• What You Get: Choose between 5% back in rewards or 0% APR financing on eligible orders. No annual fee, plus rotating offers for additional savings.
• Affiliated Brands: Use the card across Wayfair’s network, including AllModern, Joss & Main, Birch Lane, and Perigold.
• Ideal For: Loyal Wayfair customers making frequent or large home-related purchases.
• Check out Wayfair's Credit Card for more information.

Walmart Credit Card: Savings Beyond Furniture

• What You Get: Earn 5% back on Walmart.com, 2% back in stores, at gas stations, and restaurants. No annual fee.
• Affiliated Brands: This card covers Walmart’s growing selection of furniture and home goods.
• Ideal For: Shoppers who buy a mix of furniture and everyday essentials from Walmart.
• Check out the Walmart Credit Card for more information.

Target Circle Card: Ongoing Discounts for Loyal Shoppers

• What You Get: 5% off everything at Target, including furniture, plus free shipping and extended returns. No annual fee.
• Affiliated Brands: Applies to all Target purchases, both online and in-store.
• Ideal For: Regular Target shoppers who want consistent savings on home goods and decor.
• Check out Target's Circle Card for more information.

West Elm/Pottery Barn Credit Card (West Elm Key Rewards)

• What You Get: Earn 10% back in rewards at West Elm, Pottery Barn, and other Williams-Sonoma brands. No annual fee, plus 0% APR financing offers on larger purchases.
• Affiliated Brands: West Elm, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, Williams Sonoma, Mark & Graham, and Rejuvenation.
• Ideal For: Shoppers furnishing a home with higher-end pieces from multiple brands.
• Check out Key Rewards for more information.

Ashley Advantage Credit Card: Best for Large Purchases

• What You Get: Flexible payment plans and special financing options for large furniture purchases. No annual fee.
• Affiliated Brands: Exclusively for use at Ashley Furniture stores.
• Ideal For: Customers who want to finance a large furniture buy and spread out payments.
• Check out for The Ashley Advantage Credit Card for more information.

Ikea Projekt Card: Best for Home Renovations

• What You Get: Offers 0% APR for 6, 12, or 24 months, depending on your purchase size. No annual fee.
• Affiliated Brands: This card is valid only at Ikea, making it ideal for larger home projects or room makeovers.
• Ideal For: Ikea customers planning larger purchases, especially for renovations or furnishing multiple rooms.
• Check out The Ikea Credit Card for more information.

Home Depot Consumer Credit Card: Great for Home Projects

• What You Get: Special financing offers with no annual fee. Home Depot frequently runs promotions offering 0% interest for large purchases over extended periods.
• Affiliated Brands: Home Depot only, though great for home improvement projects that include furniture.
• Ideal For: DIY enthusiasts or homeowners buying furniture along with home project supplies.
• Check out the Home Depot Credit Card for more information.

Lowe’s Advantage Card: Discount and Financing Flexibility

• What You Get: 5% off all purchases or special financing options for larger buys. No annual fee.
• Affiliated Brands: Lowe’s stores and online.
• Ideal For: Shoppers buying furniture and other home improvement items.
• Check out the Lowe's Credit Card for more information.

Raymour & Flanigan Credit Card: Financing for Large Furniture Buys

• What You Get: Special financing offers for larger purchases, with no annual fee. Raymour & Flanigan often offers 0% interest financing for extended periods.
• Affiliated Brands: Valid only at Raymour & Flanigan stores.
• Ideal For: Large-scale furniture buyers who want flexible payment options.
• Check out the Raymour & Flanigan Credit Card for more information.

Should You Get a Store Credit Card for Major Purchases?

Store credit cards can be useful, especially for big furniture buys. Here’s how to know if it’s the right choice for you:

When can Store Credit Cards be Compelling?

• Interest-Free Financing: Many cards offer 0% APR for 6 to 24 months. If you’re buying a large item like a bedroom set or a sectional sofa, spreading the cost over time without interest makes sense—just be sure to pay it off before the promo ends.
• Frequent Purchases: If you regularly shop at the same store, rewards like 5% back (offered by Amazon or Target) can add up. But, make sure you can pay off the balance each month to avoid high interest charges.
• Shopping Across Multiple Brands: If a card works at several stores (like the West Elm Key Rewards card), you’ll benefit from rewards no matter where you shop within their network.

Are Store Credit Cards Worth It Compared to Alternatives?

When comparing store credit cards to general consumer credit cards like the Chase Freedom Unlimited, Citi Double Cash Card, and American Express Blue Cash Preferred, several key differences stand out:

1. Rewards

• Store Cards: Often offer high rewards (5-10%) but are limited to specific retailers.
• Consumer Cards: Offer lower but more flexible rewards (1-3%) that apply to a wide range of purchases.

2. Financing

• Store Cards: Typically provide 0% APR financing for large purchases but only at their specific store.
• Consumer Cards: Tend to offer 0% APR financing on all purchases or balance transfers, giving more flexibility beyond just furniture buys.

3. Interest Rates

• Store Cards: Tend to have higher interest rates (25%+), which can outweigh rewards if balances aren’t paid off.
• Consumer Cards: Generally offer lower rates, especially for those with good credit.

Store credit cards are ideal for frequent shoppers looking to finance large purchases or earn specific rewards. However, for broader spending or long-term use, general consumer credit cards provide more flexibility, lower rates, and more valuable perks overall.

Scenarios Where a Store Credit Card Makes Sense:

1. You’re buying a $2,000 couch and the store offers 12-month 0% APR financing, making monthly payments manageable without interest.
2. You frequently shop for home goods at places like Target, and the 5% discount will save you more than paying with a regular card.
3. You’re furnishing multiple rooms and a card like West Elm’s lets you earn rewards across brands like Pottery Barn and Williams Sonoma.
4. You’re upgrading a single room and need financing flexibility, but plan to pay off the balance before the promo period ends to avoid interest.

The Effect of Opening a New Credit Card on your Credit history

Opening a new credit card can have both positive and negative effects on your credit score. While it can improve your credit utilization ratio by increasing your available credit, it can also temporarily lower your score due to a hard inquiry. Understanding how new cards influence your credit history is essential to making informed decisions when applying.

Your Chances of Approval for Store Credit Cards by Credit Scores

Your chances of approval largely depends on your credit history. Store credit cards tend to be easier to qualify for compared to general consumer credit cards, but approval is still influenced by your credit score, income, and other factors.

Credit Scores and Approval Odds:

• Excellent Credit (750+): With a credit score in this range, you have a high likelihood of approval for most store credit cards. You’ll likely qualify for the best promotional rates, including 0% APR offers.
• Good Credit (700-749): If your score is in the good range, you still have a solid chance of getting approved for a store card. Many furniture retailers will offer favorable terms, though some premium cards may have slightly stricter requirements.
• Fair Credit (650-699): If your score falls into this range, your chances of approval start to diminish. You might still qualify for some store cards, but you may be subject to higher interest rates or lower credit limits.
• Poor Credit (below 650): Approval becomes more difficult if your credit score is low. Store cards may still be an option, but expect higher interest rates, and you may need to show proof of income or a cosigner in some cases.

It’s important to keep in mind that each card issuer has its own criteria, and while credit score plays a significant role, other factors—like your debt-to-income ratio and credit utilization—can also influence approval.

Understanding Creditworthiness and How Credit Bureaus View Store Cards

Opening a store credit card can influence your credit score, but how many credit cards should you have? Here’s what to consider:

• Optimal Number of Cards: Most people with good credit have three to five active credit cards. This demonstrates responsible credit use and helps build a strong credit history. People with good credit often tend to have many inactive credit cards in addition to their 3-5 active cards.
• Credit Utilization: This is the percentage of your available credit that you’re using, and keeping it below 30% is ideal. Opening a new card increases your total credit limit, which can lower your utilization if you don’t increase your spending. For example, if you’re using $2,000 of a $10,000 limit (20% utilization), adding a new $5,000 credit line drops your utilization to 13%.
• Account Mix and Age: Credit bureaus favor a mix of different types of accounts, such as credit cards, loans, and mortgages. Adding a new store card improves your account mix if you don’t have many credit cards.
• Temporary Score Dip: Opening a new card triggers a hard inquiry, which can lower your score by a few points. However, if you make payments on time and keep your utilization low, your score typically rebounds within a few months.

What Happens If You Cancel Your Credit Card After One Year?

Many people worry about the risks of opening and canceling a store credit card, but the reality is that it’s generally low risk. Here’s what to know:

• Impact on Credit Score: Canceling a card might reduce the average age of your credit accounts, but the effect is typically minor. Keeping the card open for at least a year can help your credit history.
• No Annual Fee Cards: Most store cards have no annual fee, so there’s little reason to cancel unless you’re simplifying your accounts. Even if you don’t use the card often, keeping it open can help with your overall credit limit.
• When to Cancel: If you’re no longer using the card and have other lines of credit, canceling it after a year is unlikely to significantly hurt your score.

Conclusion: Is a Store Credit Card Right for You?

Store credit cards can offer valuable rewards and 0% financing, but they’re only worth it in specific situations. If you’re making large purchases or shop frequently at a particular store, they can help you save. The Amazon Store Card is especially competitive, offering 5% cash back on all Amazon purchases, making it a solid option compared to other consumer cards.

Consider opening a store card if you plan to take advantage of 0% APR or substantial rewards. In some cases, opening a no-fee card, making large purchases, and allowing it to become inactive can improve your credit utilization. If the card becomes unnecessary, you can cancel it with minimal impact on your credit history.

Before applying, evaluate how it fits with your shopping habits, financial goals, and credit impact.