Sears Credit Card Review

John S Kiernan, Managing EditorJun 27, 2020

WALLETHUB’S RATING: 1.6 / 5

John S Kiernan, Managing EditorJun 27, 2020

WalletHub’s Rating

1.6 out of 5 rating 1.6 / 5

Opinions and ratings are our own. This review is not provided, commissioned or endorsed by any issuer.

Pros

No membership fees
High rewards rate
up to $225 initial rewards bonus

Cons

Spending caps on rewards
No intro APR on balance transfers
Balance transfer fee
Foreign fee

The Verdict: Sears, a nationwide retailer perhaps best known for its appliances and a shrinking store count, appears to have already thrown in the towel as far as its eponymous credit cards are concerned. Neither the Sears Mastercard Credit Card nor the the Sears Store Card charge an annual fee, but that’s pretty much the best thing going for the store card.

The Sears Mastercard — the better of the two offers, considering you need “good” credit for approval versus just “fair/limited” credit for the store-only version — gives you a up to $225 initial bonus (applied as statement credit) for spending $500 in the first 90 days. Beyond that, you’ll receive ongoing rewards between 10 and 50 points, which work as 1% to 5% back.

The only thing that’s different about the Sears Store Card, other than its use being limited to the Sears family of brands, including Kmart, is the lack of rewards.

Sears Credit Card

3.53 out of 5 rating325 Reviews

Learn More

Purchase intro APR

0% for 12 months

Regular APR

29.74% (V)

Annual Fee

Rewards Rate

10 - 50 points / $1

Bonus Offer

up to $225

Min Credit Needed

Good

Rewards Details

Earn a $75 statement credit for every $500 spent on eligible purchases within 90 days of account opening, up to a maximum total value of $225 in statement credits.
Earn 50 points (5% back) on eligible purchases at gas stations, 30 points (3% back) on eligible purchases at grocery stores and restaurants on the first $10,000 of combined gas, grocery and restaurants purchases per calendar year and 10 points (1%) thereafter.
Earn 20 points (2% back) on eligible purchases at Sears & Kmart, and 10 points (1% back) on all other eligible purchases.
You can use earned points to save in-store or online at Sears or Kmart and at shopyourway.com.
The points are valid for twelve months from the date they are awarded.

Additional Info

Deferred Interest Details: No interest if paid in full within 12 months on select sitewide purchases of at least $299.
5% off select sitewide purchases.
More Details & Reviews About Sears Credit Card

The Highlights

up to $225 Statement Credit: If you get approved for the Sears Mastercard and make purchases of at least $500 in the first 90 days, you will automatically receive a up to $225 statement credit. Such savings certainly won’t make you rich, but they’re better than nothing.

Average Rewards: The Sears Citi Mastercard is currently offering purchase-based rewards just for 12 months from date of account opening with 5% in points on eligible purchases at gas stations and 3% in points on eligible purchases at grocery stores & restaurants on the first $10,000 of combined gas, grocery, and restaurants purchases, and 1% thereafter. You will also earn 2% in points on eligible purchases at Sears and Kmart, plus 1% in points on all other eligible purchases.

No Annual Fee: Although the Sears credit cards don’t give you much, they at least don’t necessarily take anything from you, either. Their lack of annual fees helps cushion your budget and enables cost-effective credit building.

The Lowlights

Deferred Interest 0% Financing: All of the many promotional financing arrangements offered via the Sears credit cards have a nasty little secret known as “deferred interest.” Its presence means that if you’re late on a monthly payment by even a day or you’re just a dollar short of paying off your full balance by the end of the promotional period, the card’s regular interest rate will retroactively apply to your entire original balance. Such an offer therefore has the potential to leave you saddled with a surprisingly expensive bill, a risk not worth taking when so many consumer-friendly 0% APR cards are available.
That’s especially true when you consider that opting for one of Sears’ promotional financing offers — including those that waive interest for more than six months, which are available during the first month after account opening — precludes you from receiving the 5% special discounts in select categories.

High Regular APR: Both the Sears Mastercard and the Sears Store Card have a 29.74% (V) regular APR. Compare that to 21.2% for the average good-credit credit card, according to WalletHub’s latest Credit Card Landscape Report, 23.87% for its fair-credit counterpart and 26.97% for the average store card, and you’ll understand why it’s a bad deal.

Other Things To Consider

Store Card Offers Surprising Flexibility: Most store credit cards can only be used at the retailers whose names they bear. That doesn’t quite describe the Sears Store Card, however, as it can also be used at Kmart, which is owned by the Sears Holding Company.

Temporary Shopping Pass: If you find yourself at Sears or Kmart needing to make a purchase but unable to find your card, you can obtain a temporary card to use by showing your ID to a store employee. It’s a nice convenience.

5% (min $10) Balance-Transfer Fee: You probably wouldn’t even think to transfer a balance to the Sears Mastercard (not allowed with the store card), considering the treacherous financing climate it fosters. But if by chance you do, its 5% (min $10) balance-transfer fee should help dispel that notion once and for all. The market average, in case you’re wondering, is 3%.

3% Foreign Transaction Fee: Sears doesn’t have an international presence, so this particular nuisance fee applies only to the Mastercard. In short, it’s good reason to leave your Sears Mastercard at home in favor of plastic that will reward you for what you spend abroad, not charge you for it.

Compared To The Competition

Sears isn’t the only store where you can shop, and its credit cards aren’t the only plastic you can pay with. It’s well worth browsing around in both cases, so we’ll help you out by explaining how the Sears Mastercard — the better of the two — stacks up against its top competition.

		Sponsored
Annual Fee	$0	$0	$0	$0
Bonus Offer	up to $225	N/A	$50 gift card	N/A
Rewards Rate	10 - 50 points / $1	1 - 5% Cash Back	1 - 5 points / $1	5% discount
Purchase Intro APR	0% for 12 months	N/A	N/A	N/A
Transfer Intro APR	N/A	N/A	N/A	N/A
Regular APR	29.74% (V)	17.99% or 28.99% (Variable)	18.74% - 26.74% (V)	27.15% (V)
Editors' Rating	1.6	4.5	4.5	5
Details, Rates & Fees	Learn More	Learn More	Learn More	Learn More
Winners	Amazon.com Credit Card		Target Credit Card

Questions & Answers(11 questions)

How much is the Sears Credit Card annual fee?

Upvotes

Lisa Cahill, Credit Cards Moderator

The Sears Credit Card annual fee is $0 per year. Sears Credit Card's $0 annual fee is lower than the average annual fee among new credit card offers right now. It's not the only fee you need to worry about with the Sears Credit Card, though.

Sears Credit Card Fees

Annual Fee: $0
Cash Advance Fee: 5% (min $5)
Foreign Fee: 3%
Balance Transfer Fee: 5% (min $10)
Max Late Fee: $40

When does the Sears Card report to credit bureaus?

Upvotes

Chip Lupo, Credit Card Writer

The Sears Credit Card reports to the credit bureaus monthly, within days after the end of a cardholder's monthly billing period. Sears Credit Card reports the card's credit limit, account balance, payment history, and more to all three of the major credit bureaus: TransUnion, Equifax, and Experian. Citibank may use a specific credit bureau more than another, depending on the applicant's home state, and other factors.

Once Sears Credit Card reports your account information to a credit bureau, it may take a few days before the updates appear on your credit report. New Sears Credit Card cardholders may not see any new credit account info on their credit report for one or two billing periods after getting a card.

If you'd like to review your up-to-date credit score and TransUnion credit report, you can sign up for a free account on WalletHub. That way, you'll be able to check every day to see if there's any new information about the Sears Credit Card on your credit report.

How do I increase my Sears Credit Card credit limit?

Upvotes

Chip Lupo, Credit Card Writer

You can request a Sears Credit Card credit limit increase online, or by calling customer service at 1-800-917-7700. To raise your chances of being approved for a higher credit limit, pay your bill on time for at least six straight months, reduce your outstanding debt, and update the income Citibank has on file. Citibank will be more likely to increase your credit limit if the revised income clearly shows that you can afford a higher limit.

How To Get a Sears Credit Card Credit Limit Increase Online

Log in to your online account.
Choose the Sears Credit Card from the list of account options (if you have more than one Citibank card).
Click “Available Credit,” and then “Request Increase.”
Enter the required information.
Confirm the information entered and click “Submit” to complete the request.

You should receive a decision in just a few seconds. If you're approved for a Sears Credit Card credit limit increase, the new limit is effective immediately.

Impact of a Sears Credit Card Credit Limit Increase on Your Credit Score

When you request a Sears Credit Card credit limit increase, Citibank will conduct a hard pull of your credit report, which will cause a short-term dip in your credit score. Citibank cannot do a hard pull without your permission, though.

Alternatively, you could be eligible for a Sears Credit Card credit limit increase without even requesting one. The Sears Credit Card may offer an automatic credit limit increase if Citibank's regular review of your account shows a history of on-time payments and low debt. An automatic credit limit increase involves a soft pull, which does not affect your credit score.

Is the Sears Card a credit card?

Upvotes

Chip Lupo, Credit Card Writer

Yes, the Sears Credit Card is a credit card. The Sears Credit Card is issued by Citibank, works wherever Mastercard is accepted, reports to the credit bureaus, and allows you to pay off purchases over time. There are quite a few important things to know about the card before you apply, though.

Key Facts About the Sears Credit Card

Issuer: Citibank
Network: Mastercard
Credit requirement: Good credit
Annual fee: $0
APR: 29.74% (V)
Foreign transaction fee: 3%
Rewards: 10 - 50 points per $1

To sum things up, Sears Credit Card is a credit card, but it may or may not be the best credit card for you depending on your needs, qualifications and spending habits. You can learn more about this card from WalletHub's full review.

How can I freeze my Sears Credit Card?

Upvotes

Chip Lupo, Credit Card Writer

To freeze a Sears Credit Card, log in to your online account or the Citibank mobile app and navigate to “Citi Quick Lock." You can also call Citibank customer service at 1 (800) 677-0232 and ask them to freeze your card, though it is much easier to lock and unlock a credit card on the app.

Freezing your Sears Credit Card will temporarily prevent most purchases from being made with your card number, which can be convenient if you lost your credit card or if you're trying to control your spending. For lost cards, it's also important to note that you'll never be held responsible for unauthorized purchases thanks to a $0 fraud liability guarantee.

How to Freeze a Sears Credit Card Online

Log in to your Citibank online account or mobile app.
Pick the Sears Credit Card and select “Lock Card" under the card name.
Change the settings so that your card is in the locked position.

Locking your Sears Credit Card will stop new purchases and cash advances. But it will continue to allow recurring transactions, balance transfers, payments, credits, returns, dispute adjustments, fees, and rewards redemptions. To start using your credit card at full capacity again, just navigate back to the Citi Quick Lock page and unlock the Sears Credit Card.

Does Sears Credit Card offer rental car insurance?

Upvotes

Chip Lupo, Credit Card Writer

The Sears Credit Card does not offer a rental car insurance benefit. Even though the Sears Credit Card doesn't have rental car insurance, this perk is one of the handful of credit card benefits that still come with many credit card offers. If you'd like a credit card with rental car insurance, there are plenty of options.

In general, credit card rental car insurance provides coverage against damage and theft of a rental vehicle, usually up to the vehicle's actual cash value, when the rental is paid for entirely with an eligible credit card. To get coverage, the cardholder must decline the rental agency's insurance plan.

Does Sears Credit Card have travel insurance?

Upvotes

Maria Adams, Credit Cards Moderator

No, Sears Credit Card does not have travel insurance. While Sears Credit Card does have benefits such as an introductory purchase APR of 0% for 12 months and monthly credit bureau reporting, travel insurance is not among the card's perks. This is because the Sears Credit Card is made for people who shop at Sears often.

If you're looking for a travel credit card, check out WalletHub's recommendations for the best credit cards for travel insurance and travel rewards. Before picking a card, also be sure to check your credit score for free on WalletHub so that you know which cards you'll be able to qualify for.

Does the Sears Credit Card have a grace period?

Upvotes

Chip Lupo, Credit Card Writer

Yes, the Sears Credit Card has a grace period of at least 25 days, lasting from the end of each billing cycle until the payment due date. If cardholders pay their Sears Credit Card statement balance in full every month, Citibank will not charge any interest.

Keep in mind that you are not required to pay the entire balance by the due date. But if you decide to pay less than the full amount due, you will lose the grace period. The remaining Sears Credit Card balance and any new purchases will then start to accrue interest that compounds daily. To get a credit card grace period back, you will need to pay the statement balance in full for two consecutive months.

It's also important to note that grace periods do not apply to cash advances or balance transfers.

What is the Sears Credit Card balance transfer fee?

Upvotes

Maria Adams, Credit Cards Moderator

The Sears Credit Card balance transfer fee is 5% (min $10). This card is not a good choice for balance transfers due to the combination of its balance transfer fee and relatively high balance transfer APR: 29.74% (V). That does not compare favorably to the selection of 0% balance transfer credit cards on the market right now.

Does the Sears Credit Card have a late fee?

Upvotes

Chip Lupo, Credit Card Writer

Yes, the Sears Credit Card does have a late fee of up to $40, which applies when cardholders don't make the minimum payment by the due date. The late fee for Sears Credit Card is $29, and it will increase to $40 for subsequent late payments within 6 months. After 6 months of consecutive payments since your last missed due date, the late fee will reset to $29. Thanks to the CARD Act of 2009, the Citibank late fee can never exceed the minimum payment amount.

If you accidentally make less than the required minimum payment or you miss your Sears Credit Card due date entirely, you can always ask customer service to waive the late fee by calling 1 (800) 917-7700. This is much more likely to work if you have a great payment history with Citibank, but even if not, there's no harm in asking.

To avoid getting hit with late fees in the future, make sure to pay at least your minimum required payment each month. The best way to ensure that you never miss a payment is by setting up autopay.

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