IKEA® Visa® credit card Current Credit Card Agreements

On the record for IKEA® Visa® credit card Current Credit Card Agreements: a 21.99% purchase APR and no annual fee, filed by Comenity Capital Bank. The purchase rate sits at roughly the 49th percentile of the 4,587 agreements indexed here.

What the document actually states

What follows is drawn entirely from Comenity Capital Bank's CFPB filing for IKEA® Visa® credit card Current Credit Card Agreements. The filing runs 12 pages, and It is issued on the Visa network.

The filing is explicit about a purchase rate, a cash advance rate, a balance transfer rate, an annual fee line and a late payment maximum. A penalty rate, a foreign transaction fee and a grace period are not stated.

Where the purchase APR sits

21.99% puts the purchase APR near the 49th percentile across 2,280 agreements, so it is unremarkable against the rest of the set.

The arithmetic of revolving

A $3,000 balance left untouched for twelve months accrues about $738 in interest at this purchase rate.

The corpus median of 21.99% produces practically the same bill, so on carrying cost this card is unremarkable.

Note the $3 minimum interest charge, which overrides the arithmetic above whenever the calculated interest falls below it.

These figures are arithmetic on the disclosed rate, not a quote: they assume the balance is never reduced, ignore any payments, and take no account of fees charged separately.

Charges beyond interest

The annual fee is $0. Roughly 75% of filings here that state a fee state zero, so the absence of one is unremarkable in this market.

For cash advances the filing discloses a cash advance APR of 23.99%. That is 2 points above the purchase rate.

Moving a balance onto this card carries an up-front charge of $10 or 5% of the amount transferred, whichever is greater, with the transferred balance priced at 26.99%. Transferring $7,500 would cost roughly $375 at the door.

Paying in full

The $3 minimum interest charge means the effective cost of carrying a very small balance is far higher than the quoted APR implies.

When a payment is late

On the fee side, a late payment can cost up to $41, which is around the 89th percentile here.

The issuer's other agreements

This is one of 100 Comenity Capital Bank agreements collected here. The issuer's own range is 14.74%–35.99%. At 21.99%, this agreement is dearer than 3 of its siblings.

What is outside the disclosure

The disclosure parsed here does not state a foreign transaction fee, a grace period and penalty pricing. Those gaps are gaps in what could be read from the filing, and the PDF may well address them in prose the rate table does not capture.

What this analysis can address is bounded by the filing: rates, fees and the terms around them. Everything a card issuer might advertise — rewards, benefits, bonuses, who qualifies — falls outside the document and outside this review.

The document itself

Everything here is a reading of the filed agreement, 12 pages of it, which is linked above and which governs. Terms also change between filings, so the date on the document matters.

In short

At 21.99% the purchase rate is close to ordinary for this corpus; nothing in the rate table sets this filing far apart from its peers. Because there is no annual fee, everything depends on the revolving behaviour: used as a payment instrument and cleared monthly, this agreement costs nothing.