Wayfair has partnered with Citi to launch two new credit cards

Citi is a CreditCards.com advertising partner.

Wayfair, a popular online furniture store, is scrapping its old credit card issued by Comenity Bank to replace it with two new ones partnering with Citi.

The two credit card products, the Wayfair Credit Card and the Wayfair Mastercard, come with no annual fee and more attractive rewards than the old version. Both can be used to redeem rewards at any Wayfair retail websites, including wayfair.com, jossandmain.com, allmodern.com, birchlane.com and perigold.com.

The cards launched on Sept. 11, 2020, and are now open for applications.

What the new Wayfair credit cards offer

When you apply for one Wayfair credit card, you’ll be considered for both. Then, if you’re approved for both, you’ll be able to choose which one you want.

The lower-tier Wayfair Credit Card is a classic store credit card. It can only be used on Wayfair retail websites and doesn’t earn rewards anywhere else. It offers 5% back in rewards at Wayfair and provides an option of deferred interest financing if paid in full up to 24 months on qualifying orders.

See related: Best retail rewards credit cards

The Wayfair Mastercard, on the other hand. can be used anywhere Mastercard is accepted. Besides earning 5% back in rewards on Wayfair retail website purchases, you can earn:

• 3% back in rewards at grocery stores
• 2% back on qualifying online purchases
• 1% back on all other purchases

Both cards offer $40 off your qualifying first order of $250 or more if you choose to earn rewards. Purchases with deferred interest financing don’t qualify for rewards.

Note that if you opt into this financing option and don’t pay in full within 24 months, you’ll be charged interest from the purchase date. The APR on both cards is rather high, as is typical for store credit cards, so we recommend to use this option only when you’re certain you can pay your purchase off within the promotional period.

Wayfair offers the following financing options with its new credit cards:

• 6-month financing on orders over $199
• 12-month financing on orders over $499
• 18-month financing on orders over $1499
• 24-month financing on orders over $2999

If your purchase is over $2,999, you might also qualify for a “major purchase plan,” in which you’re still charged interest – but at a lower interest rate for a set number of months.

Should you get a credit card from Wayfair?

If you’re due for some furniture shopping, a furniture store credit card can offer a way to earn rewards on your purchases or finance them. On the other hand, such cards are generally only a good choice for brand loyalists, due to limited rewards earning and redemption opportunities. Store credit cards also tend to have lower credit limits and high APRs.

The Wayfair Mastercard does offer rewards for grocery, online and general purchases, but you’ll still find regular rewards credit cards much more versatile when it comes to rewards redemption.

If you’re interested in financing a large purchase, you might want to look into 0% APR credit cards that charge no interest during the promotional period, as opposed to offering deferred interest plans.

Still, if you have the old Wayfair credit card from Comenity Bank and have been happy with it, Citi offers even a better deal, so you might want to consider applying.

Additionally, a store credit card can also be a good option for those with lower credit scores, especially now that many credit card issuers have tightened underwriting standards.