Wayfair Credit Card Review
Wayfair, the online furniture and home decor site, is appealing because of its seemingly endless options and in-style aesthetic.
But, even if you shop on Wayfair constantly, should you get its store credit card (the Wayfair credit card)? The card offers some intriguing perks for regular shoppers, including special financing and rewards.
Use our review to help you decide.
Benefits of the Wayfair Credit Card
The Wayfair Credit Card (a store credit card issued by Comenity Bank) has no annual fee and offers the following perks:
$40 off your first order of $250 or more after card approval: This cannot be combined with any other offer, including interest-free special financing offers.
Earn 3% back in rewards on qualifying orders: Every time you make an eligible purchase with your card at Wayfair, Joss & Main, AllModern, Birch Lane and DwellStudio, you’ll get 3% back in Reward Dollars that you can redeem toward a future order. You won’t earn rewards on purchases in which you receive special financing.
$0 down and six- or 12-month special financing on eligible orders: Your order will need to be at least $250 to qualify for six-month financing and at least $500 for 12-month financing. You’ll be charged no interest if you pay off your order in full by the end of the promo period (6 or 12 months). If the full balance is not paid, or if you make a late payment, you’ll be charged interest retroactively dated back to the purchase date. This special financing can be used on any qualifying purchase for the life of the card. Unlike mainstream credit cards, which will often give you 0% financing only for a limited period after you open the card, the Wayfair Card extends it to you for any purchase over $250.
In sum, this card gives you a choice for each purchase -- special financing or rewards. If you choose rewards, you’ll get 3% back, which will get you a discount on a future purchase on Wayfair or any of its affiliated sites. If you choose special financing, you’ll enjoy 0% interest for six or 12 months. Either option, depending on your needs, could be useful for a large furniture order.
One of the benefits of store credit cards (such as the Wayfair Card) is that they often make great first steps in building your credit score. Approval standards for store cards tend to be more flexible than those for mainstream credit cards because the issuer knows you can use the store card only at the co-branded store. You're more likely, therefore, to get approved for a store card if you have fair credit (or worse).
Store cards come with high APRs and, often, a low credit limit. But, if you're looking for a way to improve your credit score and have been rejected by mainstream and premium credit card issuers, the Wayfair Card might help you get a leg up in the FICO score world. Just make sure to pay off your account on time every month and keep your balances low.
Disadvantages of the Wayfair Credit Card
Be aware of these potential downsides to the card:
- It can be used only at Wayfair (and affiliated sites): This card is not co-branded with a major network (such as MasterCard or Visa), meaning you can’t use it for everyday expenses. It can be used only at Wayfair, Joss & Main, AllModern, Birch Lane and DwellStudio. That reduces the card’s convenience, but also the value of its rewards. Getting 3% back may sound exciting, but you’ll be getting it only when you purchase furniture on these specific sites.
- The special financing involves retroactive interest: Paying no interest for six or 12 months on a large purchase can be handy. But understand that if you don’t pay off every last cent by the end of the interest-free period, you’ll get hit with retroactive interest backdated to the purchase date. Here’s what that means: Say you buy a $600 sofa and get 12 months of interest-free financing. At the 12-month mark, you’ve paid off most of it and have only a $50 balance remaining. You might think it’s not a big deal to carry the $50 balance one more month and pay interest on it. However, due to the retroactive interest, you’ll be charged interest not on the $50 remaining, but on the original $600 purchase price.
- Rewards can be redeemed only at Wayfair (and affiliated sites): Your rewards can be used only at Wayfair. If you find a better sectional on another unaffiliated furniture site, you won’t be able to use your rewards toward the cost.
Other Cards For Wayfair Purchases?
The Wayfair Card’s benefits can save frequent Wayfair shoppers money (in the form of rewards or waived interest charges). However, a mainstream credit card might be a better fit. For one thing, a card carrying the Visa, MasterCard, Discover or American Express logo can be used everywhere those cards are accepted (not just at Wayfair.com). For another, the 0% financing terms may be a better fit.
Consider these cards as possible alternatives:
Citi® Double Cash Card (a Credit Cards House advertiser): This card ($0 annual fee) gives you 2% cash back: 1% cash back when you make purchases and another 1% cash back when you pay off those purchases. While that may seem lower than the 3% back in Rewards Dollars you get from the Wayfair card, think of the big picture: The Citi Double Cash card lets you earn those rewards on all purchases (not just Wayfair ones). And it lets you redeem that cash back for checks or statement credits (not just for Wayfair purchases).
Chase Freedom Unlimited® Card: This card ($0 annual fee) offers 1.5% cash back on all purchases. What makes this card unique is that your cash back comes in the form of Chase Ultimate Rewards points that can be redeemed for things beyond statement credits -- travel, merchandise and gift cards, for example.
A card with a long 0% intro period: Plenty of mainstream cards offer a year or more interest free after approval. And that 0% interest rate is not retroactive. In other words, if you’re still carrying a balance after the promo period is done, you’ll get charged interest only on the balance that remains -- not on the original purchase amount. Check out our list of the cards with the longest 0% intro periods. Note that you’ll get this 0% interest financing only for a specified period after card approval. You won’t get it for any purchases after that. If getting 0% APR on furniture purchases for the life of the card is important to you, you might still want to consider the Wayfair Card.
The Bottom Line
The Wayfair Card might be a good fit for frequent Wayfair shoppers who anticipate buying most, if not all, their home furnishings from Wayfair. For those who want more flexibility (and have a good enough credit score to get approved for other cards), consider applying for a mainstream card that offers a healthy rate of cash back.
First published , last updated
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.