Ikea is a go-to store for many people looking for furnishings, major appliances, and more. And for those that make large purchases at the store or website, the Ikea Projekt Card could seem like a solid fit. If you’re considering this retail credit card, here are six interesting facts about the Ikea Projekt Card that you should know.
1. Zero Percent Interest for Up to 12 Months on Purchases
The Ikea Projekt Card is designed to make large purchases more affordable and easier to shoulder. Through the card, you can take advantage of 0 percent interest offers when you spend specific amounts.
If your purchase is at least $500 and you use the Ikea Projekt Card to pay it, you’ll get 0 percent interest for 6 months. That means if you pay it off before that period is over, you won’t pay any interest even though you spread out the payments.
For purchases of $1,000 or more, you get a longer 0 percent interest timeframe. Instead of 6 months, the special interest rate applies for 12 months. By paying it off within the year, you don’t have to content with any interest at all, which can be a significant savings over using a traditional credit card.
Finally, if you make a purchase of $2,500 or more, you get 24 months to pay off the balance without incurring interest. You also don’t have to ask to enroll in these special financing options; it happens automatically when you check out and pay with the Ikea Projekt Card.
Just be aware that minimum payments are required. Additionally, the minimum payments set by Ikea may not guarantee that you’ll pay off the promotional balance within the 0 percent interest timeframe. As a result, you’ll want to calculate how much you need to pay monthly to ensure you pay it off in time if you would like to avoid interest entirely.
2. Interest During the Promotional Period Is Waived
When some retail credit cards offer special financing options, you face a potentially expensive caveat. In many programs, if you don’t pay off the entire balance before the 0 percent interest rate period ends, you get charged the full interest amount dating back to the day of purchase.
With the Ikea Projekt Card, the interest is waived during the special financing period. That means you’d only pay interest on the remaining balance starting on the day after the promotional period ends.
For example, imagine you made a $500 purchase and paid all but $50 off by the end of the six-month special financing period. You wouldn’t have any backdated interest and would only get newly-generated interest on that remaining $50 on the seventh month and moving forward until the balance is paid off.
3. Competitive Interest Rates
Store credit cards tend to come with higher-than-average interest rates outside of any special offers (like those outlined above). The average retail credit card currently comes with an interest rate of 26.72 percent. That means that the Ikea Projekt Card is pretty competitive, as the interest rate is set at 21.99 percent.
The 21.99 percent interest rate applies to purchases that don’t meet the thresholds for special financing. Additionally, that’s the rate you’d pay if you don’t pay off the balance of a special financing purchase within the required timeframe (6 or 12 months, depending on the size of the purchase).
4. There’s No Annual Fee
Annual fees can potentially wipe out any savings you would get on other cards. But with the Ikea Projekt Card, there’s no annual fee to deal with ever. So, you can take advantage of the 0 percent interest offers without having to worry about any surprise costs.
5. Ability to Have Multiple Promotional Balances
One nice feature of the Ikea Projekt Card is that you can have multiple promotional balances. For example, if you spend $1,000 and use the card as payment, you get 12 months 0 percent interest on that balance. Then, if you spend $500 four months later and use the Ikea Projekt Card to pay for it, that new $500 balance gets its own 6-month 0 percent interest promotional period, and it doesn’t affect the remaining 8 months on the other promotional financing.
The only difference you’ll see when making promotional purchases and paying off the balances is shifting monthly minimum payments. The minimum payment required is based on a percentage of the current balance. So, if the balance goes up, so does the minimum payment, and as you pay the balance down, the minimum payment declines.
6. Automatic Enrollment in Ikea Family
If you’re not an Ikea Family Member when you sign up for the Ikea Projekt Card, you’re automatically enrolled when you get the card. That allows you to get 5 percent off on furniture and décor (restrictions apply) when you shop, which can save you a bundle. Plus, you can get discounts on specific delivery options, as well as 90-day price protection.
Ikea Family Members also get access to special offers regularly. Specials are available all year round, and the discounts are often significant. Since there’s no cost for being an Ikea Family Member, being one is genuinely a chance to save.
Do you know of any other interesting tidbits about the Ikea Projekt Card? Do you have an Ikea Projekt Card and want to tell others about your experience? Share your thoughts in the comments below.
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Image and article originally from www.savingadvice.com. Read the original article here.