Sears Credit Card: 9 Things To Know Before You Apply

In today’s competitive marketplace, big retailers like Target and Amazon are rolling out branded credit cards with special financing offers to draw in and retain customers. Sears, in partnership with Citibank, has jumped on the bandwagon with its Shop Your Way Mastercard.

This card can come in handy for those who regularly shop at Sears, Kmart, and affiliated stores. The card gives you access to exclusive deals, promotions, and financing options, while also helping you rack up points that can be redeemed for future purchases.

But is the Shop Your Way Mastercard really worth it? In this review, we’ll dig into Sears credit card rewards, as well as the potential drawbacks and limitations that come along with it.

Shop Your Way Mastercard’s Benefits

Looking through Sears credit card reviews, you’ll come across a few distinct benefits that make this card stand out.

Attractive Sears Mastercard Rewards

The Sears credit card rewards program, called “Shop Your Way,” lets cardholders build up points or other incentives with every purchase. These rewards can then be cashed in for discounts, gift cards, or other perks, which add up to significant value to cardholders over time. If you choose to stick with Sears, here’s what you can look forward to:

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

Additional perks? You Bet!

Welcoming Incentive

Along with attractive rewards, the Shop Your Way Mastercard offers a welcome bonus that can help you kick off your journey with the card. With the new Sears credit card, new cardholders can snap up as much as $225 in statement credits. You’ll earn $75 on every $500 spent within the first 90 days of the card use. However, the maximum amount is still limited to a total of $225.

Special Financing Offers

The card also comes with special financing offers on select items and services. This can be particularly beneficial for larger purchases, allowing Sears card owners to spread out payments over time without racking up interest. On top of that, cardholders may get access to exclusive discounts, participate in special sales events, and receive promotional offers that regular shoppers miss out on.

No Annual Fee

More often than not, credit cards come with usage fees charged on an annual basis, which can add up and eat into the cardholder’s expenses, potentially wiping out any bonuses or rewards. Thankfully, the Shop Your Way Mastercard has a $0 annual fee, so you can really take advantage of all the card’s benefits without having to worry about extra costs.

Online Account Management

The Sears credit card offers convenient online account management tools, allowing cardholders to easily keep track of their spending, make Sears credit card payments, and carry out other financial operations without a hassle.

Shop Your Way Mastercard’s Drawbacks

Our Sears credit card review wouldn’t be complete without pointing out the downsides of this offer. Like any other card, the Shop Your Way Mastercard has its drawbacks, and you should look out for these issues to make an informed decision on whether this card is the right fit for your financial goals.

Limited Rewards

At first glance, the Sears credit card rewards come across as quite appealing. Yet, the offer comes with limitations that make it less enticing. For instance, the generous 5% and 3% bonus points available on gas stations and restaurant and grocery purchases are capped at $10,000 in annual mixed purchases. As soon as you hit this amount, your bonus earnings drop down to just 1%.

Redemption Restriction

Sears Mastercard rewards cannot be cashed out, and the bonus points come with an expiration date. If you don’t use them within 12 months, they’ll simply expire.

The points you earn can only be redeemed via Sears or Kmart purchases or certain eligible third-party gift cards. However, with 1,000 points equaling just $1, in reality, the bonus might not add up to as much as you might expect.

Higher Card Fees

To make up for a 0% annual fee, the Sears credit card stacks on some hefty high fees and interest rates. For example, the APR for purchases and balance transfers sits at a steep 33.74%. To avoid the charges, you’ll need to make sure there’s no outstanding balance each month; otherwise, the fees will likely cancel out the rewards you’ve earned.

Special Promotions Implications

When looking into the Sears credit card special financing options, you should keep in mind that they rely on deferred interest. This means that if you don’t pay off your balance by the end of the promotion period, the interest will pile up from the original purchase date. So, these are not traditional 0% APR introductory offers, and you’ll want to watch out for the fine print.

Another Credit Card to Use

If the Shop Your WayMastercard doesn’t sit well with you, consider checking out another option.

Chase Freedom Unlimited Credit Card

One alternative is the Chase Freedom Unlimited card, which comes with a straightforward rewards program offering unlimited 1.5% cash back on all purchases, plus an additional $150 bonus after spending $500 on purchases within the first 3 months. Additionally, the card throws in a 0% introductory APR on purchases and balance transfers for the first 15 months.

Final Thoughts

The Shop Your Way Mastercard can come in handy for regular Sears shoppers, providing convenience and value-added benefits. However, before you delve into applying for a Sears Mastercard card, it’s worth taking a closer look at its features, weighing the pros and cons, and comparing it with alternative options. As always, reading through several reviews is a smart way to make a well-informed decision.