TJ Maxx Credit Card Review (Updated For 2013)
Q: I shop a lot at TJ Maxx and between myself, two kids and my husband, we spend quite a bit of money there. I have considered applying for their MasterCard but because it’s a store credit card I’m hesitant. Do you think it would be a good one for me to have?
A: There are really three questions here, so let’s tackle them one at a time:
(1) Are store cards in general good/bad?
(2) Is the TJ Maxx store card good/bad?
(3) Would the card make sense for your personal circumstances?
First let’s talk about store cards in general…
When it comes to credit cards issued by department stores and other retailers, you are smart in being hesitant. Overall, the store card industry is notorious for some unscrupulous practices.
First and foremost, many of them have horrendous customer service. Just read reviews on this site or elsewhere and you will see they might very well be the most complained about credit card category.
Secondly, more often than not, store cards are tailored to accommodate those with less-than-stellar credit scores. In turn, their interest rates can be atrociously high. It’s not unusual for even the best, most creditworthy applicants to be given APRs in the 20’s.
Third, due to the quality of the customer base, the credit limits on some store cards are significantly lower than what you would expect from a bank-issued credit card.
That may not bother you but here’s what you might not realize: your credit score can be affected by the percentage of credit limit used (known as the credit utilization ratio). As a rule of thumb, the less you use, the better. If you’re regularly using 30% to 50% or more of your credit limit, that might negatively impact your score. And if a store only gives you a limit of $300, using just $90 of it would already put you at 30%. See how that could be a problem?
However let me be clear… the above points are not in reference to the TJ Maxx credit card specifically. Rather I am just referring to the store card industry as whole and what you will find more often than not. In this industry there are good and bad apples… more of the latter, but you will find a few that don’t come with the above drawbacks.
TJ Maxx credit card review: good or bad?
TJ Maxx has two different versions – a store-only version and a MasterCard. When you fill out an application you can’t specify which one you want, the one you get (if approved) will depend on your credit history.
Here’s what both of them have in common…
Signup Promotion: 10% off the first purchase
Rewards: At TJ Maxx, Home Goods, and Marshalls it gives 5 points per dollar. 1,000 points = $10 rewards certificate which means the card gives a 5% rebate at these stores. There are no caps on the amount that can be earned.
Annual Fee: none
Interest Rate: As I write this the credit card application lists a single rate tier of 26.99% for both cards. Obviously, this is quite high even for a store card!
Here’s where they differ…
The TJ Maxx Rewards Platinum MasterCard can also be used any place MasterCard is accepted. On those purchases, it gives a straight 1 point per dollar. Also, it provides many of the same benefits you’ve come to expect from a MasterCard issued by a bank. In short, this is comparable to a regular credit card.
Verdict? For shopping at TJ Maxx stores and affiliates the rewards are quite respectable. However, the interest rate is insanely high.
Will this card make sense for you?
Obviously if you ever carry a balance the answer is a big “NO!” But that aside, when it comes to store cards I always ask people this simple question:
How much do you spend per year at their stores?
Usually this is an easy way to determine whether a TJ Maxx card (or any given store card) will make sense for you. Let’s say you spend $5,000 per year at their stores… the 5% rewards would equal an impressive $250. However if you make just a few hundred dollars in purchases, your annual earnings wouldn’t be nearly as exciting. For example, $500 per year would net you only $25 worth of reward certificates.
If you don’t shop enough at TJ Maxx to make it worth your while, I would recommend either the More by Discover or the Freedom by Chase, both of which give 5% in rotating categories (which sometimes include department and apparel stores).
I would hands down NOT recommend a TJX rewards card for a consumer. Let me begin by saying that I am a very frequent shopper at TJMaxx (by that I mean that I have spend more than 6500 in the store within the last 12 months). I received a TJX rewards card with a 2000.00 limit and have very good credit. When the charges on the card reached 1000.00, my credit line was automatically decreased to 1400.00. TJX cust service stated that this was standard practice. Keep in mind this is with an excellent payment history and not so much as a single late payment/missed payment, etc (I was told that they did not take payment history into account for credit line decreases). As referenced above, the percentage of usage on your card can cause a hit to your credit score, and this card caused a hit on mine once the limit was decreased. Despite talking to customer service, and despite still having a high credit rating (in the top 20%) they would not reinstate the previous limit….terrible customer service. DON’T LET THIS HAPPEN TO YOU, BEING A GREAT CUSTOMER AND RESPONSIBLE USER OF CREDIT THROUGH TJMAXX WILL NOT GET YOU REWARDED! I have paid off my balance in full and now owe nothing. I will keep the card open so that it will not further impact my credit, but will never use this card again for purchases. Big mistake TJMAXX, not only will you never again earn profits from the incredibly high percentage rate you were charging me, but you will also lose the 195,000.00 I would have spent in your store over the course of my life, as I will NEVER shop at TJMAXX again.
How long does it take to get a credit increase? I open the account with $500 limit but now its been almost a year with no increased limit (no late payments or missed payments either)
My mother and father over the years have spent tens of thousands between TJ Maxx and Marshalls. I got my clothing as a kid at Marshalls and am now in my late 40′s. I spend thousands per year but am thinking about stopping because I got involved with their credit card. I’ve cancelled the account after not being able to contact them by phone because an automated system wanted part of my social security number and I didn’t want to supply it, the customer service people finally reached were rude and unprofessional, the amounts they charge are usurious, and there are many other credit cards available that don’t have hidden fees.
TJ Max credit card is through GE Capital which I didn’t ask about before applying & receiving. As soon as I saw on the back it was GE & heard the foreign customer service rep who acted flippant & actually laughed at me when I asked if there was a ‘grace period’ since I missed the due date which was yesterday…… I knew I’d made a giant mistake. They are the biggest bunch of crooks. I’m looking forward to paying off my account, taking the balance down as low as it will go and cancelling the card ASAP. Do not get TJ Maxx’s credit card no matter what offers or perks they tell you about in the store.
I’ve had a TJ Maxx card for years and since I shop there pretty regularly, it makes sense for me. BUT, I always pay off the full balance each month. It makes no sense to use this card if you carry a balance.
i regret of having TJ MAXX credit card the interst rate is way so high..im trying to pay it off then i will not use it no more..cant wait til i paid it off.
I agree. I just noticed a rate increase of 26.99% on pg 2 (hidden away). When I called the svc center they said this rate was started May 2012. I spend probably 10000/yr. If this rate increase is how they reward their customers then I don’t want a part of this. I will take my business elsewhere.
How long does it take TJ Maxx to mail the credit certificates for earned points? I should be getting $60 free cash that I’d like to spend but how long before they send it???
What credit score are stores looking for to extend a credit card approval? I need more revolving credit because I have very little, and I am trying to improve my credit score so I don’t want to take the risk of being denied. If my score is a 609 is this an automatic denial?
Do not get this card the interest rate is crazy and I sent my payment on time and they said I was late charged me $35 I still have an open account but I am not going to use it again
Write a letter to corporate…if it helps. If not take your business elsewhere. There are alot of great places to shop…even eBay/Amazon with ease of returns.
I shop at TJ Maxx stores all the time. I love their kids and men clothes but don’t have many in my size 3x but I still shop in this store at least 3x a week and every weekend. and they will not accept me for their credit card.
Your credit sucks
I shop in your stores all the time I love your kids and men clothes you don’t have many in my size 3x or larger but I still shop in this store at least 3x a week and every weekend. and you all will not except me for credit.