How Does the Kohl’s Credit Card Work: Benefits and Rewards

How Does the Kohl’s Credit Card Work: After Macy’s Inc. (NYSE: M), Kohl’s department stores, a subsidiary of Kohl’s Corp. (NYSE: KSS), is the second-largest retail chain in terms of sales. Kohl’s is widely recognised as a family-friendly store that sells affordable, high-quality apparel. It has developed a loyal customer base through its frequent discount promotions, which offer vouchers for up to 35% off store items.1 Like the majority of major retail chains, Kohl’s offers a store card that can only be used at Kohl’s stores and on Kohls.com.

How Does the Kohl’s Credit Card Work?

The Kohl’s Card is a retail charge card, so it can only be used to purchase merchandise from Kohl’s. This includes both in-store and online purchases. This is distinct from a conventional credit card bearing the Visa, Mastercard, American Express, or Discover logo.

The Kohl’s Card, like most retail cards, comes with a store credit limit that is typically lower than the credit limits issued for traditional credit cards. The quantity of credit issued depends on the cardholder’s credit score and can range from $300 to $3,000, though it is typically less than $1,000.

As the Kohl’s credit card is a charge card, the monthly balance is expected to be paid in full; however, cardholders may retain a balance if they are willing to pay the variable annual percentage rate (APR), which as of July 2023 was 30.99%.2 The card does not impose an annual fee, but late fees and returned payment fees may apply.

You can register for a Kohl’s Card either online or in-store. Prior to approval, applications are subject to a rigorous credit review, which can impact your credit score.

Kohls Credit Card Login : Manage Your Kohl’s Card @ credit.kohls.com

Kohl’s Card Perks and Benefits

The Kohl’s Card is not a credit card with rewards. If you are a member of the Kohl’s Cash rewards programmes, you can still collect rewards on purchases. Kohl’s Cash enables customers to accrue store credit for future purchases. For example, if you spend $50 on merchandise, you can receive $5 in Kohl’s Cash. In addition, Kohl’s has offered discounts for new cardholders, such as a 35% discount on the first purchase made with a new Kohl’s card.3

There are periodic promotions for Kohl’s Cash, which are sometimes exclusive to Kohl’s cardholders. It is possible to combine discounts and promotions at Kohl’s, which can result in substantial savings. On any purchase, for instance, a consumer may combine a 30% discount offer with Kohl’s Cash. Kohl’s frequently offers cash-off coupons, such as $10 off $30+ purchases. These can be combined with additional discounts and Kohl’s rewards programmes.1

All consumers, including Kohl’s cardholders, can participate in these discounts and rewards programmes. However, each year cardholders receive additional offers for 10% to 30% store discounts. In addition, new cardholders receive a 35% discount on their first purchase, which can be combined with any other store discounts.1 If you become a Most Valued Customer by spending over $600 per year, you will receive six additional discount offers, such as a birthday gift and free shipping promotions.4

Users of the Kohl’s Card also benefit from mobile payment options, hassle-free returns, and online and mobile bill payment.

Who Uses Kohl’s Credit Cards?

Kohl’s has cultivated a loyal customer base through its discount offerings and consumer rewards programmes, which can result in substantial savings when combined. Utilising a new Kohl’s credit card is appealing to many consumers due to the additional 35% off the first purchase on top of all other discounts.

A retail store card, such as the Kohl’s Card, may be a good option for someone who is establishing credit for the first time or attempting to rebuild a positive credit history. Typically, retail store credit cards are simpler to qualify for than traditional credit cards.

As is the case with conventional credit cards, paying your Kohl’s Card account late may result in negative credit reporting and a reduction in your credit score.

Kohl’s Card Positives and Negatives

In terms of advantages, the most appealing aspect of the Kohl’s Card is the initial discount offered to new cardholders making their first purchase. If you intend to purchase an expensive item from Kohl’s, the discount could result in significant savings.

After that, the only true advantage of having a Kohl’s card is the special discount offers that are available throughout the year. For Kohl’s customers who rely on the ability to combine discounts, this may be reason enough to acquire it.1 People who do not frequently purchase at Kohl’s may benefit more from a standard cash-back rewards credit card.

Regarding the disadvantages, it is essential to remember that the Kohl’s credit card is a retail store card. Among the disadvantages of retail store credit cards is the fact that they are typically issued as subprime credit, which results in a high APR if you carry a balance.2

Moreover, retail store credit cards frequently have low credit limits, which is not necessarily a negative thing because it can prevent you from overspending. If you are accustomed to receiving $5,000 credit lines from credit card issuers, you may be dismayed by the Kohl’s credit line.

Because it does not offer a rewards programme in addition to the one available to all customers, the Kohl’s Card may not be useful if you shop there infrequently. Consider instead using a rewards card that enables you to earn cash back on all department store purchases.

Pay attention to how rewards are earned and the annual fee when comparing cashback and other traditional rewards cards to ensure the card fits your purchasing habits and lifestyle.

The Conclusion

Comparable to other retail store credit cards in terms of features, benefits, and fees. Adding a retail store card to your wallet could help you establish credit, but if you can come up with an initial deposit, a secured credit card may be a better option. Before applying for the Kohl’s charge card or any other retail store card, you should consider how frequently you’ll use it and how likely you are to pay off your balance in full to avoid paying exorbitant interest fees.