At one time or another, you’ve probably been asked if you want to apply for an Old Navy credit card at the point of sale by the store cashier with the standard offer of “would you like to save 15% on your purchases today?”. Just about every clothing and department store has their own credit card, so is this one worth getting?
There are TWO different cards from Old Navy, both issued by Synchrony Bank.:
• Old Navy store credit card – This is your typical private label store credit card. It can only be used at Old Navy locations and their affiliated stores (which are Gap, Banana Republic and Athleta – all of these are owned by the same parent company as Old Navy)
• Old Navy Visa card – This is a traditional credit card that can be used at Old Navy and affiliated stores, plus anywhere Visa is accepted.
Unfortunately you can’t actually choose which card you receive… the outcome will be based on your credit score (applicants with not-so-good credit scores will likely get the store-only version).
How does the Old Navy rewards program work? Here’s how you earn rewards:
- 5 points per dollar spent at Old Navy, Banana Republic, Gap and Athleta
- 1 point per dollar spent elsewhere (Old Navy Visa card only)
Here’s how the rewards are redeemed…
- $5 rewards card given for every 500 points the account earns, meaning your points are worth 1 cent each. Your rewards will be deposited every billing cycle. If you have an “uneven” number of rewards (525, for example), you’ll get 5 reward dollars and 25 points will carry forward.
- Points expire 24 months after your last purchase.
Are there any other benefits?
There are a few benefits that come with the card, but they are pretty typical for a store-affiliated card:
- Discount on first purchase with the card: As of Dec. 2016, that’s 15 percent.
- Special offers for bonus points available only to cardholers
- Access to presales.
- Ability to earn Navyist status: If you earn 5,000 reward points on your account in a calendar year and make at least the minimum payment due after reaching that mark, your account will be upgraded to what’s called “Navyist” status. Navyist status gets you a 20 percent bonus on points earned each quarter; free shipping for online orders from Old Navy and affiliated stores (must use code NAVYIST); and free basic alterations to Banana Republic purchases.
What is the interest rate?
Unfortunately, the Old Navy card has a high annual percentage rate (APR). At the time of this review, it’s 2524 percent, variable. So, if you should ever find yourself carrying a balance (even if just for a month) then these credit cards should definitely be avoided as the interest charges would begin to eclipse the value of the rewards you got at Old Navy in the first place.
How is the customer service?
Synchrony Bank issues many store credit cards, and, based on comments on our reviews and posts in our forum, it is not known for great customer service.
Should you apply for it or not?
As with all store cards, you need to ask yourself how much do you spend at this store per year? Old Navy’s clothes are low priced to begin with, so just to earn $50 in rewards (5,000 points) once per year, you would need to be spending $1,000 there. If you do spend thousands per year there then the Old Navy credit card might make sense. If not, their credit card may not be worth the hassle. So, bottom line, the Old Navy card along with any other store credit card is a fairly bad deal when you look at the other options available to most people with decent credit in the marketplace. If you like Old Navy that probably means you’re a shopper – so why not shop around for a better deal?
If you have good enough credit, there are plenty of cards that give you 1.5 percent cash back on ALL your purchases, and rewards can be redeemed for statement credits — not just for future Old Navy purchases:
Why we gave it 2.5 out of 5 stars
Our rating for this card was based on our standards for store credit cards. For the purposes of this review, we rated the Visa version.
|In-store financing: The Old Navy Visa doesn’t advertise any in-store financing.|
|Offers ongoing rewards/discounts: This card offers an ongoing rewards program with 5X rewards at Old Navy and affiliated stores.|
|Fair interest terms: This card does not meet our standards, as its go-to APR is above the average store card APR (according to CreditCards.com's latest retail card survey).|
|Consumer-friendly incentives: This card offers access to presales for all card-holders, but most of its benefits (free shipping, free alterations) are available only for cardholders who achieve Navyist status. So we rewarded half a star.|
|Can be used anywhere: The Visa version of this card (if you qualify) can be used anywhere Visa is accepted and earns rewards on those purchases.|
This review was written or last updated Dec. 6, 2016.