You’ve probably heard it said that you should never fall into the “store credit card trap.” That is, for the most part, true. However, there are a select few credit cards which, if you use them correctly, may actually be beneficial to you.
The Kohl’s credit card could be one of those cards, if the service fits your lifestyle. That is to say, if you frequently shop for the types of products Kohl’s offers, you may see savings through this card. Want a bit more information? Read on for our Kohl’s credit card review.
Kohl’s Credit Card Details
Kohl’s stores are pretty neat. As you shop the racks, you’ll find a mix of fashions, home goods and even toys which are seemingly marked down. For instance, maybe you’ll find a shirt with a “retail price” of $49 and a “Kohl’s Price” of $20.
What many people love about the store is that, once you arrive at the register, you’ll frequently find that that price is even lower than you’d expected. Maybe it rings up at $15. Good deal, right?
As you check out, your sales clerk will likely ask you if you’d like to apply for a charge card. She’ll tell you you’ll save an additional 30% on today’s purchase, then receive promotional offers throughout the year. If you’re considering taking your clerk up on the offer, here’s what you need to know.
First, the Kohl’s credit card carries a high APR. Currently that APR is 26.74%. There is no introductory rate; that’s the rate for the duration, unless you receive notice otherwise. However, there’s no annual fee, and there is a 25 day grace period.
If you don’t pay off your purchases within the allotted time frame, the interest can add up. Those Kohl’s discounts can become quite pricey. But if you pay your bill on time, you can actually save a substantial amount of money. Here’s what Kohl’s credit card reviews have to say.
Kohl’s Credit Card Review: The Perks
In addition to your items ringing up low at the register, Kohl’s is notorious for its sales. The retail chain often offers sales up to 60% off, and the “clearance racks” are amazingly current and organized. Shopping at Kohl’s is a true bargain hunter’s dream.
In addition to the percent-off sales, Kohl’s offers the Yes2You Rewards program. For each purchase you make at Kohl’s, this loyalty program gives you points toward future dollars-off discounts.
Periodically throughout the year, Kohl’s also brings back Kohl’s Cash. This is a commonly implemented marketing program through which you can earn discounts on future purchases. For instance, if you spend $40 at Kohl’s today you’ll receive $20 off a $40 purchase to be used a month from now.
So why are we telling you al this? Because Kohl’s allows customers to stack discounts and coupons. You can literally walk away with an armful of clothes and household goods for less than twenty bucks when you apply your dollars off, percent off and rewards discounts.
The credit card helps with this. Every now and then, Kohl’s credit card holders will be entitled to additional, exclusive discounts, saving you any more money. Assuming you pay your credit card bill on time, this can equate to significant savings on products you’d buy anyway.
Kohl’s Credit Card Review: The Cons
Again, the interest rate on the Kohl’s credit card is extremely high. If you get behind on your bills, the interest payment is significant, and may negate any savings you benefited from in the store. The late fees are also high. Expect to pay $38 if you miss a payment due date.
You do need a decent credit score to qualify for the Kohl’s credit card. Poor credit usually won’t qualify, but fair credit will. Usually consumers with scores in the upper 600s will be able to receive a credit card and its associated discounts.
Another aspect we’re not particularly thrilled with is the rewards program. That is to say, there is none. The Yes2You Rewards program is available to everyone, regardless of credit cardholder status. We wish Kohl’s would offer a points program for those who choose to become cardholders.
Overall, if you pay your credit card bill before it’s due and don’t incur any interest, we feel the pros of the credit card outweigh the cons. If you’re shopping at Kohl’s anyway, the additional discounts you can receive make the card a good addition to your wallet.
How to Apply for a Kohl’s Credit Card
If you’re interested in applying for a Kohl’s credit card, we recommend you visit the store! This will, of course, give you a better idea of whether you’ll get use out of the card. If you shop the racks and don’t find anything you like, maybe this isn’t the card for you.
If you do find a cart full of shirts, shoes and dinnerware, take it to the register and apply there. Your sales clerk will assist you and apply the initial 30% discount to your purchase. When you receive your card in the mail, you’ll receive an additional 15% discount.
If you’re an online shopper, that’s okay. You can apply for the Kohl’s card online as well. Simply fill out the application form on the Kohl’s website. In most cases you’ll receive a decision immediately. Use your 30% discount on the website.
Keep in mind that if you do choose to shop online at Kohl’s, you may be responsible for shipping charges. If there’s not a Kohl’s local to you this shipping cost may begin to add up after a while. It may be in your best interest to look for another card that will offer more convenient benefits.
Kohl’s Credit Card Review: Summary
It’s very possible that you’ve been told that store credit cards are a credit trap. In many cases, that’s true. However, if you’re a frequent shopper at Kohl’s already, you may find that the savings you’re offered through the card and the store can quickly add up.
Pay your card bill on time, as it reports to the credit bureaus. The timely payments will also prevent interest charges, and the Kohl’s credit card might work out quite nicely for you.