New Wayfair credit cards offer rewards or special financing

Posted: 16 September 2020 9:58 am
News

Wayfair mastercard credit card

The two Citi cards let you choose 5% back in reward dollars or promotional financing of up to 60 months

Citi Retail Services has partnered with popular e-tailer Wayfair to launch two new credit cards that provide customers with financing options and rewards for their furniture and home goods purchases. Both cards have no annual fee and they both let you choose — either 5% back in reward dollars on Wayfair purchases or special financing options of up to 60 months.

The main difference between the two cards is where you can use them. The Wayfair Credit Card is a private label card you can only use on the Wayfair sites (Wayfair.com, jossandmain.com, allmodern.com, birchlane.com and perigold.com). On the other hand, you can use the Wayfair Mastercard everywhere plastic is an accepted payment method.

The only drawback is that you can’t really choose which card to apply for. Wayfair has only one prequalification option, and based on your credit score and other financial information, they decide which card to approve you for. In case you are approved for both, you can choose which card you want. The simple act of prequalification won’t affect your credit score, but applying for the card will cause a hard pull.

Quick look at the new Wayfair cards

Here’s what you can expect with these two cards.

Wayfair Credit Card Wayfair Mastercard
Rewards 5% back in reward dollars at Wayfair 5% back in reward dollars at Wayfair

3% back in rewards at grocery stores

2% back in rewards for qualifying online purchases

1% back in rewards on all other purchases

Financing options No-interest promotional financing if paid in full
Valid through 01/20/2021

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

Major purchase plans (require credit approval from Wayfair)
Valid through 01/20/2021

9.99% APR for 36 months on orders over $2,999
9.99% APR for 48 months on orders over $3,999
9.99% APR for 60 months on orders over $4,999

No-interest promotional financing if paid in full
Valid through 01/20/2021

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

Major purchase plans (require credit approval from Wayfair)
Valid through 01/20/2021

9.99% APR for 36 months on orders over $2,999
9.99% APR for 48 months on orders over $3,999
9.99% APR for 60 months on orders over $4,999

Welcome offers $40 off on your first qualifying Wayfair purchase of $250 or more (if you choose rewards instead of financing) $40 off on your first qualifying Wayfair purchase of $250 or more (if you choose rewards instead of financing)
Annual fee $0 $0
Purchase APR 26.99% variable 26.99% variable

Promotional financing isn’t really interest-free

This card’s promotional financing of up to 24 months is actually deferred interest. This means you will pay no interest if you pay your purchase in full before the promotional period is over. If there’s even $1 left unpaid, you will pay interest on your purchase accrued from the day you made the purchase. And it likely won’t be cheap. With an APR of 26.99% variable, a $2,999 purchase can cost you $3,913 after 24 months.

Reward dollars aren’t really cash back

Even though you earn a certain amount back in reward dollars, you can’t actually use your rewards to get cash. You can only redeem your reward dollars on Wayfair sites during checkout as a form of discount. The good news is that there’s no minimum threshold to redeem and your reward dollars never expire.

Photo: Wayfair

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