Kohl’s Credit Card Review with Pros and Cons
You can find Kohl’s department stores almost every state in the United States. This store carries accessories, clothing, shoes, housewares, and miscellaneous offerings. If you find yourself shopping at Kohl’s on a regular basis, the Kohl’s credit card may be a good fit. This retail card is easier to get approved for. However, it only makes sense to get it if you’re a regular Kohl’s shopper. We’ll go over the pros and cons of the Kohl’s credit card in this post. By the end, you’ll know if it would be a viable option for you or not.
Kohl’s Credit Card Pros
Coupons for Kohl’s
Any Kohl’s credit card holder will get access to coupons for the retailer. You’ll get a scratch off coupon once a month in your mailbox just for having this card. You may get 15 percent, 20 percent, or 30 percent off your purchases. The amount of the coupon varies, but some people swear that the more they shop, the more it is. The time to use the coupons is limited, so it’s best to check the dates.
Sign Up Bonus
Any cardholder will get a sign-up bonus just for opening an account. The first time you use your charge account, you’ll get 25 percent off your entire purchase. You’ll get an additional 15 percent off when you get your actual card in the mail as well. If you apply online, you’ll get an additional 20 percent off. These discounts can amount to huge savings, especially if you shop at Kohl’s a lot.
You’ll Get Access to Yes2You Rewards
If you make purchases either in the store or online, you’ll get rewards points. You take your points, and you exchange them for coupons. These coupons can be a discount percentage on items throughout the store. You can use your coupons both online or in-store for an added convenience.
Also, Kohl’s likes to run promotions to reward the frequent shoppers. Kohl’s cash is an excellent example of this strategy. For every $50 that a shopper spends, they get a $10 coupon. This coupon will be inactive for a few days, before the shoppers can use it. This practice ensures the customers return to shop again rather than claim the money right away.
You Can Gain a Most Valued Customer Status
Once you get your Kohl’s credit card, you can earn the status of Most Valued Customer (MVC). To get this status, you’ll have to charge $600 or more annually to your Kohl’s credit card. Any Most Valued Customers will get eighteen discounts mailed to them per year. Again, if you shop at Kohl’s a lot, this can add up quickly.
You Can Combine Discounts
You already get two discounts just for having and using your Kohl’s credit card. However, you can also combine these discounts with others for more savings. You can add the Kohl’s Cash and Yes2You rewards to your credit card discount. If you time it right, you could walk away with over 40 percent in savings.
Keep Track of Purchases
When you buy items with your Kohl’s credit card, it’ll get logged in the system. This means that there will be a log of each item you purchase at Kohl’s. You can return your items without a receipt if they’re defective, damaged, or if you don’t like them. The cashier simply has to look them up in their system when you bring them back. This takes the stress out of trying to find receipts weeks after you’ve bought something.
Kohl’s Credit Card Cons
High Credit Score
This credit card requires cardholders to have a higher credit score to qualify. They’re looking for people with a rating of 620 and up. This makes it harder for anyone to get qualified for this credit card. You could always raise your credit score and try again once it reaches at least 620.
The Kohl’s credit card is a retail store card. This means it typically has a higher APR than your average credit card. This card’s APR is a variable 24.99 percent. So, if you don’t pay your card off each month, this can really hurt you. You’re supposed to pay it off each month to avoid this percentage. You may qualify for a lower APR depending on your credit score as well.
Late Payment Penalties
If you miss just one payment, the penalties are steep. You will end up paying a $37 late payment fee. Additionally, your APR could go up to the 24.99 percent. All of this is just for missing a single payment. You’ll get the $37 late payment fee each time you miss your Kohl’s credit card payment.
You can only use this card at Kohl’s stores or online at the Kohl’s site. This really limits how you spend your rewards and discounts you earn. But, if you shop at Kohl’s regularly, this limited usage shouldn’t be a problem.
Lower Credit Line
Credit limits are not high to start. Generally, you start with a $500 to $1,000 line of credit. It doesn’t advance much higher than $1,000 for any FICO credit score. This may be an unpleasant surprise if you usually get a $5,000 line of credit or higher.
In conclusion, the Kohl’s credit card is good for someone who shops at Kohl’s on a regular basis. It is also a good option if you plan to pay it off each month. This will help you offset the higher APR that comes with this card. Finally, it offers a variety of discounts that can add up to decent savings if you’re careful. This card is an all around solid option for a retail card.