Sears Credit Card: 9 Things To Know Before You Apply

In today’s competitive marketplace, big retailers like Walmart and Amazon are rolling out branded credit cards with special financing offers to engage and retain customers. Sears, in partnership with Citibank, joins the trend with its very own Shop Your Way Mastercard. This card is a step up from its predecessor, the Sears store credit card, allowing cardholders to earn rewards both in Sears-affiliated stores and elsewhere, as it’s accepted wherever Mastercard is.

But is the Shop Your Way Mastercard a good deal? In our review, we’ll dig into Sears credit card rewards as well as the offer’s drawbacks and limitations.

Shop Your Way Mastercard’s Benefits

Looking through Sears credit card reviews, you’ll spot a few distinct benefits that make this card stand out from the crowd.

Attractive Sears Mastercard Rewards

The Sears credit card reward program (called “Shop Your Way”) allows cardholders to earn points or other incentives on making purchases. These rewards can then be redeemed for discounts, gift cards, or other perks, providing additional value to cardholders. If you chose to stick with Sears, you’ll enjoy:

• 5% back in points for purchases in gas stations;
• 3% in points on your restaurant expenses and grocery costs;
• a 2% reward in points on your spending at Sears, Kmart, and Sears Home Services;
• 1% in points on other buys qualifying for the Additional Category Earn program from Shop Your Way.

Any other perks? Of course!

Welcoming Incentive

In addition to attractive rewards, the new Sears credit card allows you to gain up to $225 in statement credits. As a newcomer, you can earn $75 on every $500 spent within the first 90 days of the card use. The maximum amount is still limited to $225, though.

Special Financing Offers

Cardholders may also receive special financing options on select items and services. This can be particularly beneficial for larger purchases, allowing Sears card owners to spread out payments over time without accruing interest. Besides, cardholders may receive exclusive discounts, participation in unique sales events, and promotional offers that are not available to regular users.

No Annual Fee

More often than not, credit cards entail usage fees charged on an annual basis that add to cardholder’s expenses and might nullify the offer’s bonuses. Shop Your Way Mastercard has a $0 annual fee so you can get the most out of the card’s benefits.

Online Account Management

The Sears credit card offers convenient online account management tools, allowing cardholders to track their spendings, make payments, and manage other financial operations.

Shop Your Way Mastercard’s Drawbacks

Our Sears credit card review wouldn’t be complete without mentioning the downsides of this offer. Like any other card, the Shop Your Way has its drawbacks, and you should be aware of them to make an informed decision on whether this card suits your financial goals.

Limited Rewards

Sears credit card rewards look lucrative at a glance. Yet, the offer comes with limitations that make it less enticing. For instance, generous 5% and 3% bonus points available on gas stations and restaurant and grocery purchases are limited to $10,000 in annual mixed purchases. As soon as you hit this amount, your bonus earnings will drop to 1% only.

Redemption Restriction

Sears Mastercard rewards cannot be cashed out. Furthermore, the bonus points have, so to say, an expiration date. Unless you use them within 12 months, they will expire.

The points you earn can be redeemed via Sears or Kmart purchases or eligible third-party gift cards. However, each 1,000 points is worth only $1, meaning that in reality the bonus program will translate into lower sums than you might expect.

Higher Card Fees

To make up for a 0% annual fee, the Sears credit card has high fees and interest rates. For example, an APR for purchases and balance transfers is higher than average at 30.49%. Balance transfers and cash advances will be charged at $5 or 5% and $10 or 5%, accordingly. To avoid the fees, you should make sure there is no outstanding balance each month. Otherwise, those payments will likely nullify the rewards you earn. 

Special Promotions Implications

When looking into the Sears credit card special financing options, you should keep in mind that they rely on deferred interest. It means that if you have an unpaid balance as of the end of the specified validity period for the offer, the interest will be accrued from the buy date. So, these are not traditional zero APR welcoming offers, and you should be mindful of that. 

Other Credit Cards to Use

Suppose you are not satisfied with the terms and conditions of the Shop Your Way . In that case, our Sears Mastercard review includes two alternative options for you to explore.

Capital One Walmart Rewards Card

With no annual fee in place, the Walmart Card offers rewards of 2% on your spending in Walmart stores and gas stations, as well as in restaurants and travel. Furthermore, you can earn 1% on other expenses you make across locations accepting Mastercard. The card comes with a welcoming 5% bonus on your online purchases at Walmart. Notably, reward earnings can be redeemed in cash.

Chase Freedom Unlimited Credit Card

It’s one of the best purchase cards out there. The offer boasts a straightforward rewards program with unlimited 1.5% cash back on every purchase and an additional $200 bonus after spending $500 on purchases in the first 3 months. Moreover, the card comes with a 0% introductory APR on purchases and balance transfers for the first 15 months.

Final Thought

The Shop Your Way Mastercard can provide convenience and value-added benefits for shoppers who frequently visit Sears. However, before you delve into applying for this card, consider exploring its features and benefits and comparing it to alternative offers. Checking several Sears card reviews is, as always, a good idea.

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