Personal Loans

What You Need to Know About Ikea Financing

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If noshing on Swedish meatballs while perusing aisles of minimalist-inspired home furnishings sounds like a fine way to spend the afternoon, you’re likely a huge fan of Ikea. The iconic do-it-yourself retailer makes it easy to load up your shopping cart by offering Ikea financing for both smaller everyday purchases and larger home remodeling projects. But Ikea credit cards aren’t your only financing options.

Click below to explore ways you may pay for your next Ikea trip:

IKEA® Visa® credit card

Whether you’re planning to update a living room or furnish a college dormitory, the IKEA® Visa® credit card may provide you with the purchasing power you need to get the job done — with a $0 annual fee — while earning 5% back in rewards on Ikea purchases.

If you qualify and receive the IKEA® Visa® credit card, you’re eligible for the following:

5% back in rewards on IKEA® purchases, including Traemand installation and TaskRabbit assembly services, 3% back in rewards on dining, grocery and utility purchases, and 1% back in rewards on all other purchases.

There is no limit to the amount of rewards you can earn. Ikea also offers a loyalty program, Ikea Family, that provides discounts, rewards and a free hot drink each time you visit an Ikea store. When you apply for an IKEA® Visa® credit card, you’re automatically enrolled in Ikea Family.

Ikea Visa cardholders may also qualify for other exclusive benefits, including:

  • $25 off your first Ikea purchase
  • $25 Ikea reward certificate
  • Auto rental protection

As with anything else, the devil is in the details. For example, you must open and use your IKEA® Visa® credit card the same day to qualify for $25 off your first purchase.

You’ll also need to make $500 in qualifying purchases outside of Ikea within the first 90 days to scoop up your $25 reward certificate. Make sure your read your cardholder agreement carefully for other program specifics.

While there’s no guarantee for 2019, Ikea Visa cardholders in November and December 2018 were treated to additional holiday perks and bonuses. Ikea Visa cardholders received three times the rewards (or 3% back) on qualifying purchases made at certain retail stores.

IKEA® Projekt credit card

For larger projects, such as a home renovation or kitchen remodel, qualified customers may want to opt for the IKEA® Projekt credit card, which can only be used at U.S. Ikea stores or for Ikea online purchases.

With this card, you can take advantage of an intro 0% APR for 6, 12, or 24 months. It works like this:

  • Spend $500 or more and get 0% interest for six months, then a 21.99% Variable APR applies.
  • Spend $1,500 or more and get 0% interest for 12 months, then a 21.99% Variable APR applies.
  • Spend $5,000 or more and get 0% interest for 24 months, then a 21.99% Variable APR applies.

Ikea allows customers to opt out of all three promotions and switch to the regular revolving credit plan if they choose to do so.

Though, one benefit of using this form of Ikea financing is the potential savings in interest spread out over the 0% promotional period. Depending on your budget, you choose how much you want to pay each month, provided you pay at least the minimum and pay down your balance before the promo period ends.

However, it’s important to note that making minimum payments each month could result in a significant remaining balance once the promo period ends. After that, remaining balances are subject to that 21.99% Variable APR.

With the IKEA® Projekt credit card, you can see if you’re prequalified without affecting your credit score. Prequalification results in a soft inquiry on your credit report. It’s not until you choose to apply for credit that there is a hard inquiry.

It could be a great financing choice for larger projects, especially if you can pay down you card balance by the end of the promotional period.

Other Ikea financing options

Personal loans

About 19 million people have personal loans with a combined debt of $138 billion.

Personal loans can be issued by banks — both brick-and-mortar and online — as well as credit unions and other online lenders to qualified borrowers who desire fixed payments over a set period. They can be used for things like debt consolidation, paying off credit cards or buying Ikea furniture.

Interest rates for unsecured personal loans typically range between 5.00% to 36.00%, which could make them an attractive financing choice for those who qualify for the best rates. For deeper context, the average APR for borrowers with credit scores over 720 is 7.27%, but that rises to 85.92% if you’re a subprime borrower.

Beyond your credit score, lenders will usually consider your payment history and your income. The lender will want to know that you have a steady income to be able to make the payments.

If you decide that a personal loan works best for your Ikea financing needs, make sure you are aware if there are any origination fees, early payoff penalties or finance charges before applying for a personal loan.

Credit cards

Whether you’ve moved into a new home or pets have made a mess of your living room furniture, it could be time to set that old recliner and worn-out sofa to the curb and buy a comfy new living room set.

For some customers, cashback credit cards could be the way to go. They can come with higher APRs (20.90% on average) than other types of credit cards, but many offer attractive 0% APR promotional periods of 12 months or more and cash back on everyday purchases. (As always, keep a sharp eye on credit card balances during promotional periods because you could wind up being socked with deferred interest or huge interest charges if you’re still carrying a balance at the end of the period.)

You could also consider a travel rewards card, where APRs (15.99% on average) are a bit lower. Though, as a trade-off, many of these cards come with annual fees and require good to excellent credit.

As with other forms of financing, the interest rate you’ll pay is generally based on your creditworthiness, so those with higher credit scores usually receive more attractive APR offers.

LendingTree has a tool that lets you compare credit cards as you consider your options.

Bottom line

If you’ve asked yourself “Does Ikea offer financing?” there are lots of ways to upgrade your home furnishings or to help with a remodel project. The key is choosing one that makes the most sense to you based on your budget, creditworthiness and your ability to pay down balances during promotional periods.

In the meantime, take a break from shopping and enjoy a tasty plate of Swedish meatballs and potatoes along with your favorite — and maybe free — beverage.

The information related to the IKEA® Visa® credit card and IKEA® Projekt credit card  has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication.


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