Kohl’s Card Review: How it Limits Rewards and Benefits

Numerous stores roll out credit cards that allow you to save on purchases and earn rewards. Kohl’s is no exception. With its help, you can earn rewards while shopping offline at Kohl’s as well as online at Kohls.com.

At the same time, the Kohl’s credit card has some limitations that make it less than ideal for many shoppers. To determine if it’s a match for you, you should look into Kohl’s card benefits, check if they balance out the downsides, and see how they stack up against alternatives. Our concise yet informative Kohl’s credit card review will help you decide whether this card is the right fit for you or not.

Kohl’s Credit Card: What It Is and How Does It Stack Up Against Other Cards?

The first thing to mention about Kohl’s store card is that you can’t use it anywhere else but Kohl’s and the brand’s website. It is a closed-loop credit card, which may be too limiting for people who don’t shop at Kohl’s every week. Not only do you earn rewards in one store, but you can also redeem them only in that same place.

Now, let’s break down Kohl’s credit cards with other alternatives in terms of flexibility and convenience.

Amazon Prime Visa Credit Card

Amazon Prime Visa is another store card, but it is significantly more flexible compared to Kohl’s credit card. As it is a Visa card, you can use it in any store where such cards are accepted. It is a highly convenient option that offers decent cash back. You get 5% on purchases at Whole Foods and 2% on commuting and dining out. If you use it to shop at Kohl’s, you will earn 1% cashback. That’s not to mention 10% on rotating categories from Amazon for cardholders. The only catch is that you have to be an Amazon Prime member.

Wells Fargo Active Cash Card

When it comes to acceptance and convenience, nothing beats an excellent general rewards credit card. You can easily use Wells Fargo Active Cash Card as the only credit card for all your shopping because it offers 2% cash back on all purchases without any restrictions. What is more, there’s a welcome offer where you get $200 in rewards after spending $500 in the first three months. Just like Kohl’s, there is no annual fee, but it definitely wins in terms of versatility.

What Are the Fees and Interest Rates for the Kohl’s Card?

And what about Kohl’s credit card interest rates? When deciding whether a credit card will work for you, it is crucial to pay attention to interest rates and high fees.

Similarly to the vast majority of store credit cards, this option from Kohl’s doesn’t come with an annual fee. The drawback is that this charge card has a high APR of 31.24%, so it is essential to avoid carrying a balance when you use it. Another risk you should keep in mind is that there is a fee of $40 for late and returned payments.

Let’s take a look at how Kohl’s card payment fees measure up against other popular payment solutions.

Citi Double Cash Card

In terms of interest rates, a better option to consider is Citi Double Cash Card. With it, you get an 18-month 0% intro APR on balance transfers. After this period, the APR will be 18.74%–28.74% depending on your credit score. You will also enjoy a $0 annual fee and 2% cash back on purchases.

Alliant Cashback Visa Signature Credit Card

Another alternative to consider, which has a lower APR than Kohl’s, is the Alliant Cashback Card. Depending on your creditworthiness, the APR can range from 17.49% to 27.49%. It can be used in any store, and you will get 2.5% сashback on the first $10,000 you spend on qualified purchases. Once this limit is reached, the cashback will drop to 1.5%.

What Benefits and Rewards Do You Get with the Kohl’s Card?

Having sufficient generosity in terms of rewards is crucial if you want to save some money on your purchases. The benefits and rewards you get when using the Kohl’s Capital One credit card include the following:

• 35% welcome bonus on the first purchase (within 14 days of credit approval);
• 7.5% back in rewards on eligible purchases in the online or offline store;
• Access to occasional promotional events where you can earn $10 in Kohl’s Cash for every $50 you spend;
• Exclusive deals for cardholders;
• Anniversary gifts;
• Those who spend over $600 yearly can cash in on free shipping.

However, there are two main drawbacks related to such rewards. Firstly, you can’t earn or spend rewards in any other stores except for Kohl’s. Secondly, any Kohl’s Cash you earn must be spent within 30 days, or it will expire.

Now, let’s compare this rewards program with some others.

Discover it Cash Back

If you don’t want to be limited to one store, you can consider a general-purpose card like the Discover it Cash Back. It offers a $0 annual fee, and you earn a 5% cash back on a wide range of purchases — groceries, gas, meals at restaurants, etc. For unqualified purchases, you get a 1% cashback.

One downside compared to Kohl’s is that you don’t receive a sign-up bonus. However, Discover offers another advantage — they match all your earned cash back at the end of the first year.

Chase Freedom Unlimited

Another well-known alternative to consider is Chase Freedom Unlimited. It has a varied rewards system, so you get 3% cash back at restaurants, in drugstores, and on takeout. Traveling-related purchases get the highest cashback of 5%. With other purchases that don’t fall into the categories, you’ll earn 1.5% cashback. And a cherry on top is a $150 bonus after spending $500 during the first 3 months of the card use. Another great feature is that your rewards won’t expire if you don’t close your account.

Final Thoughts

If you have a favorite store, it’s easy to be lured in by the prospect of snagging their closed-loop card. However, when you take a closer look at the benefits these cards offer, it becomes crystal clear that opting for a general rewards card is a far more savvy strategy. The bottom line is that there are more lucrative alternatives to Kohl’s Capital One card that can be used anywhere, providing not only greater versatility but also a richer rewards experience.