Bed Bath & Beyond has such an enormous selection of home essentials that it's difficult for fans of the store to shop elsewhere in most cases. Whether you're heading there for new sheets and pillows, or a new kitchen appliance or two, you want to be able to get the best deals and rewards you can get. This is where the Bed Bath & Beyond Credit Card comes into play, but there is more you should know about before applying and signing up for one.
The Bed Bath & Beyond Credit Card has two available versions, one for the store and select partners, and one sponsored by Mastercard that earns the shopper rewards. You will need to decide between solid rewards or favorable financing options when you get one, but you can't have both.
While this sets the framework for some of the limitations of the Bed Bath & Beyond Credit Card, there is still more to be aware of. Not only will you need to choose between separate versions of the card that have almost no overlapping features, but you will also need to use your rewards relatively rapidly to prevent expiration. Additionally, if you are used to carrying a balance, the Bed Bath & Beyond Credit Card is not the card to do it on. Let's take a look at all the details.
Bed Bath And Beyond Store Credit Card
To better understand how the Bed Bath & Beyond Credit Card may or may not be useful for your spending habits, it's important to look at the two different versions of the card.
The first version of the Bed Bath & Beyond Credit Card is what's known as a "closed-loop" credit card, and it is only able to be used for purchases at Bed Bath & Beyond stores or other stores in the rewards family. This will include stores such as:
- Buy Buy Baby
- Bed Bath & Beyond
- Cost Plus
- Cost Plus World Market
- Harmon Face Values
While this seems limiting for the account holder, it can also benefit and help you control spending. Only being authorized for use at in-network stores can often help reduce overspending.
There is also a Bed Bath & Beyond Credit Card provided by Mastercard. The Bed Bath & Beyond Mastercard will be able to be used for transactions anywhere that Mastercard is accepted. The downside to this is that while it functions essentially like a regular credit card, it can facilitate more reckless spending with those that aren't used to having a credit card. If you're one of those people that head to Bed Bath & Beyond for one or two things but end up leaving with a full cart, this card may not be for you.
If you choose to apply for either card but may not be sure of your approval odds, it's recommended that you apply for the full Mastercard version. They have different approval requirements, and the requirements for the closed-loop card are more lenient than the Mastercard.
This means if you apply for the Mastercard and do not qualify, you will automatically be considered for the closed-loop card. This process, however, does not work in the opposite direction and if you apply for the closed-loop card and get approved, you may also have qualified for the Mastercard, but you will not automatically be considered.
Depending on when you apply and where you reside, you may encounter available promotions for new accounts. In rare circumstances, you may even find a dual promotion occurring.
For example, one commonly encountered promotional offer includes a $20 redemption on a purchase of $20 or more, given upon approval, as well as a $25 reward good on any subsequent purchase of $100 or more. Certain terms and conditions will apply, and that offer or similar ones may not be available in all areas.
Bed Bath And Beyond Store Credit Card Benefits
If you are a Bed Bath & Beyond fan, there are certainly some good benefits to be reaped if you leverage the card right. This particularly applies to the Mastercard version, which will accumulate accelerated rewards when compared to the closed-loop card. Additionally, having either card version will allow you to more easily finance larger, more expensive purchases more easily.
Both Types Of Cards Earn Rewards
Both types of cards, the Bed Bath & Beyond Credit Card and the Bed Bath & Beyond Mastercard, will accumulate rewards for purchases at stores in the Bed Bath & Beyond family at the same rate. They will earn 5% back on all purchases from the qualifying stores that will be automatically redeemed when available.
Your rewards will be "cashed out" in $10 increments, and each time a new $10 reward is earned, it will be mailed to your home. The rewards earned with these cards will only be usable at stores in the Bed Bath & Beyond family, and if you are a big spender and have earned many rewards, you will be limited to using 20 at one time, limiting redemptions to a maximum $200 value per purchase.
Additionally, the Bed Bath & Beyond Mastercard will earn 2% back on all purchases at gas stations and grocery stores, and 1% on everything else. For those who use their Bed Bath & Beyond Mastercard consistently, this can mean an incredible amount of rewards each year, with additional bonuses and rewards at larger spending milestones like $1,000 and $6,000 in one year.
Finance Larger Purchases Easier
The alternative to earning rewards with each purchase is that you can receive special financing offers for larger purchases. For those that may not use their card often, but when they do it's for major purchases, this can be the better rewards option.
For big purchases, both of the Bed Bath & Beyond Credit Cards offer:
- Six-month financing on purchases between $250 and $499.99
- Twelve-month financing on purchases between $500 and $1,499.99
However, only on the Bed Bath & Beyond Credit Card, not on the Mastercard, is the option to apply 24-month financing to any purchases of $1,500 or more.
If you choose the deferred interest special financing, you will lose the ability to earn rewards on that purchase. Additionally, be sure you know that if you do not pay off the total in the financing period, you will have a retroactive application of all accrued interest since the purchase, which can be a devastating blow to some.
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Bed Bath And Beyond Store Credit Card Cons
While there are some reasonably solid rewards earning potential for both cards, there are also some downsides. The rewards redemptions have some limitations that reduce their usefulness, and they have a relatively short shelf-life. On top of that, the interest rates on the cards dull their shine considerably.
Limited Shopping Options For Rewards
If you shop at Bed Bath & Beyond stores all the time, this card will be perfect, but if you're rather casual in your shopping or don't have multiple stores in the Bed Bath & Beyond family nearby, then you may want to look at other rewards cards.
No matter how you earn the rewards, they are only able to be redeemed in person at Bed Bath & Beyond locations or partner stores. Also, you can only use them for a maximum of $200 off per purchase, so even if you spend and earn very aggressively, you can't walk in and drop $1,000 worth of rewards certificates on a big purchase.
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The Interest Rate Is Relatively Severe
Even for all the potential usefulness of the Bed Bath & Beyond Credit Card, the interest rates can be a very powerful force to dissuade from application or use. The Bed Bath & Beyond Mastercard has a variable APR that can run between about 14% and a massive 23.99%.
If you don't qualify for the Mastercard but are approved for the closed-loop card, you can expect the interest to be even higher. Interest rates on the Bed Bath & Beyond Credit Card are a staggering 26.99% ongoing APR.
There are no introductory offers for APR reduction on either card, so you'll be paying heavily from the moment your purchase begins accruing interest.
Your Rewards Expire
If you aren't a hardcore Bed Bath & Beyond shopper, or want to try and accumulate rewards at a leisurely pace, this isn't the card for you. Not only do you need to spend fairly aggressively to earn consistent rewards, but once you mailed those reward redemptions, they are only good for 6 months.
To make this even more potentially inconvenient, you are sent the reward as soon as it's earned, meaning you can't continually earn rewards and only cash them out when you want to go make a purchase. The day you hit your first $10 reward, the six-month clock starts ticking before it expires.
As you can see, there are certainly some useful benefits to the Bed Bath & Beyond Credit Card for those that spend aggressively and shop at the Bed Bath & Beyond family of stores. However, if you are only a sporadic spender or seasonal shopper, you can probably find a better rewards card out there.
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Shawn Manaher is a former financial advisor, has founded 5 online businesses, and is a coach, speaker, podcast host, and author. He's been featured on The Consults Corner on TAE Radio, The Writing Biz, What's Your Story, and more.