IKEA Financing: What You Should Know
Feli Oliveros is a finance and business writer with experience covering personal finance, credit, and payment processing. In 2015 she graduated from UCLA, where she earned her bachelor’s degree in English and minored in Anthropology.
If you’re a fan of Swedish meatballs and minimalist Scandinavian-inspired home furnishings, you’ve likely shopped at IKEA. The iconic do-it-yourself retailer makes it easy to fill your shopping cart using IKEA financing for both smaller, everyday purchases and larger, home remodeling projects.
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IKEA® Projekt credit card
| Standard purchase annual percentage rate (APR) | 21.99% |
| Annual fee | $0 |
| Where it can be used | Only at IKEA online or in-store |
| Special financing* |
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* Standard purchase APR applies after the special 0% interest financing period. Any outstanding balance will be charged interest from the end of the financing period.
The IKEA® Projekt credit card may be a good fit if you’re making a large IKEA purchase and want 0% APR financing for up to two years. Any remaining balance after this period is subject to the standard purchase APR of 21.99%.
You can prequalify for the IKEA® Projekt credit card without affecting your credit score. However, if you formally apply, you’ll need to agree to a hard credit inquiry.
IKEA® Visa® Credit Card
| Standard purchase APR | 21.99% |
| Balance transfer APR | 26.99% plus fees |
| Cash advance APR | 23.99% plus fees |
| Annual fee | $0 |
| Where it can be used | Anywhere VISA is accepted |
| Rewards |
|
| Special financing | None |
The IKEA® Visa® Credit Card doesn’t come with special financing offers, but it does offer unlimited cash-back rewards for various categories, including IKEA purchases. You can receive $25 off your first IKEA purchase of $25 or more with this card — though the deal will need to be redeemed the same day you’re approved if opening the card in person, or within two billing cycles if opening the card online.
Although IKEA extends preapproval offers for this card to prescreened candidates, you can’t prequalify before submitting a formal application.
With both IKEA credit cards, you’ll be enrolled automatically in the IKEA Family loyalty program, which saves you 5% on IKEA furniture and decor in-store.
IKEA financing alternatives
If you don’t qualify for either of the financing options above — or if you’d prefer not to use them — don’t count yourself out just yet. Other payment options may offer you excellent terms for your IKEA store purchase.
Personal loans
Personal loans are lump-sum loans that get repaid in fixed monthly installments over a set period of time. Lenders rely heavily on your credit score to determine your loan eligibility and set your APR. Applying for a personal loan can involve getting prequalified, gathering documents and comparing offers. Many lenders also offer loans for specific uses, like home improvement loans.
Consider using a personal loan calculator to estimate your monthly payments, and pay attention to potential fees — such as origination fees or early payoff penalties — before committing to an offer.
0% APR credit cards
Borrowers with good credit can sometimes take advantage of a credit card with introductory 0% APR to spread out their IKEA bill and avoid paying interest. Any balance you carry beyond the intro period will be charged regular interest.
Though the IKEA® Projekt credit card also offers a 0% APR period, it can only be used at IKEA, as opposed to our other best credit card picks.
Buy now, pay later
Another way to pay for an IKEA purchase over time is with a buy now, pay later (BNPL) company like Affirm or Klarna. Interest rates, loan amounts, terms and fees will vary based on the BNPL app you use and your credit history. Many BNPL apps offer a “Pay in 4” option that allows users to pay for their purchase in four installments with no interest.
Budgeting and saving up in advance
Using credit cards or loans to finance IKEA furniture purchases can be much more expensive than if you decide to use cash — especially if you don’t pay your bills right away. Not only will you need to pay interest, but fees can quickly add up and increase your total debt.
Budgeting for high-ticket purchases is a much more efficient and practical financial strategy. This is especially true when you pay for nonessential items. Whether you pay in cash or credit, you’ll still need to fund your purchase somehow; choosing cash will save you more money in the long run.
The information related to the IKEA® Projekt credit card and IKEA® Visa® Credit Card have been independently collected by LendingTree and have not been reviewed or provided by the issuer of this card prior to publication.