Last week when I was buying a new coffeemaker the cashier asked “Would you like a Bed, Bath and Beyond credit card application? It gives great rewards!” This surprised me, because I wasn’t even aware they had their own credit card!

Personally, I rarely shop at this store so I knew right off the bat this card is not for me. But would it be a good choice for you? Let’s take a look at its pros and cons.

The basics

Issuer: U.S. Bank
Payment Network: MasterCard
Annual Fee: none

Most store cards are not issued by major banks, so it’s nice to see one that is. Although I don’t personally use them, U.S. Bank is one of the few big ones I rarely hear negative reviews for.

Earning rewards

5 points per dollar – Bed Bath & Beyond, Christmas Tree Shops, Harmon, Harmon Face Values, buybuy BABY. Obviously I know what Bed Bath and Beyond Stores are and I’ve been to a Christmas Trees Shop location in Ohio (the place has GREAT deals) but I’m not too familiar with the other stores listed so I looked them up…

Harmon: Stores in New Jersey, Florida, Connecticut, and New York. It appears to be all health and beauty products.
buybuyBABY: Okay this one was easy to guess… it’s a baby store. Their stores are in 22 different states, spread across the country.

1 point per dollar – anywhere MasterCard is accepted.

There is no cap on the number of points that can be earned.

Spending rewards

Every 1,000 points scores you a $10 reward card that can be used at any of the aforementioned stores. That means every 1 point = 1 cent, so you are earning 5% at those stores and 1% elsewhere.

The points are good for 5 years from the date you earn them, assuming your Bed, Bath & Beyond MasterCard is open. If it’s closed, the points are forfeited.

Interest Rate

Obviously these things change all the time but as a I write this it ranges from 13.99% to 22.99%, depending on your credit. The rate for balance transfers is the same.

The APRs appear average but something worth pointing out is that the minimum interest charge is $2.00 which means carrying a small balance may cost you more (click on that last link for an explanation of why).

Verdict?

As I mentioned at the beginning this credit card is not for people like me but if you’re someone who shops frequently (and spends a lot) at these stores, I can see why it might be appealing.

One way to look at it is that every $1,000 spent at these stores = $50 in rewards. If you spend only a few hundred a year it probably isn’t worth the hassle, but if you’re someone spending 2k, 3k, or more annually then the Bed, Bath and Beyond MasterCard offers you rewards that are worth considering. Unfortunately the application wasn’t available online but you can apply in-store.