Discover if the Kohl’s Credit Card is Worth It in Your Case

If you are a frequent shopper in the United States, it is likely that you have already considered the convenience and benefits of having one of the kohls credit card. Capital One, N.A. bank issues two distinct products in partnership with Kohl’s, And understanding the difference between them is the first step to maximizing your rewards and savings.

The search for a kohls credit card raises an essential question. Which of the two options best suits your lifestyle and, crucially, your spending pattern outside the Kohl’s network? While one operates as a store card, the other expands to the Visa network, offering opportunities to accumulate points in various categories.

In this article, we will detail the features, benefits, and approval requirements for both the Kohl’s Rewards® Visa and the Kohl’s Credit Card. 

By the end of this analysis, you will have all the objective information necessary to make an informed decision and know if a kohls credit card is the right financial partner for your daily life.

Analyzing the Details of the Kohl’s Rewards® Visa

The Kohl’s Rewards® Visa is the most complete option, acting both as a highly rewarding store card and as a standard credit card for all other purchases. Let’s see everything it offers

Rewards Program and Daily Earnings

The highlight of this card is its rewards program. On purchases made in physical stores and on the Kohl’s website, the card earns 7.5% in Kohl’s Rewards.

Outside the network, it continues to generate value. You earn 3% on fuel, 2% at supermarkets, and 1% on other purchases.

Kohl’s converts your rewards into US$5 Kohl’s Cash coupons at the beginning of the following month, and you must use them within 30 days because they expire after that period.

Exclusive Benefits (Kohls credit card)

In addition to the annual fee waiver, the card offers an attractive initial discount of 40% on the first purchase made within 30 days of account opening.

As a Visa Signature card, it includes additional benefits from the flag, such as 24-hour concierge. Travel assistance, and extended warranty on purchased items.

For loyal customers, the company offers exclusive savings that include monthly promotions and a special birthday offer.

By reaching Most Valued Customer (MVC) status – which occurs with an annual spend of US$600. Thus, it guarantees the benefit of free monthly shipping.

The Capital One app complements the experience, offering a virtual card, the possibility of temporarily blocking the card, and scheduling payments.

Financial Charges

It is imperative to analyze the fees associated with the use of credit.

The card charges no annual fee, which is a clear advantage, but it applies a 30.24% variable Annual Percentage Rate (APR) on purchases, balance transfers, and cash advances.

This rate fluctuates based on the Prime Rate and remains high, which makes paying your balance in full essential to avoid significant costs.

For those planning to consolidate debts, balance transfers are charged at 4% of the amount, if carried out at a promotional rate; otherwise, the transfer APR is used. Cash advances have a fee of US$5 or 5% of the amount withdrawn, whichever is greater. Finally, late payments can result in a fine of up to US$40.

Kohl’s Credit Card Review

The Kohl’s Credit Card operates as a private (closed-loop) card, meaning you can use it only within the Kohl’s network due to its restricted acceptance. Although it is more limited in its usability, it maintains the main attraction in terms of internal rewards.

Store-Focused Earnings (Kohls credit card)

Like its Visa sibling, this card earns 7.5% in rewards on purchases made in stores and on the website.

The program converts your rewards into Kohl’s Cash every month in US$5 increments.

Furthermore, the absence of the Visa flag means that it does not offer point accumulation in categories such as fuel or supermarkets.

Exclusive Advantages (Kohls credit card)

The store card also has an annual fee waiver and offers a substantial initial discount, which many sites cite as 35% on the first purchase made within 14 days of approval.

Customers of this card receive about 12 discount events per year, offering regular opportunities to save.

A convenience is the possibility of returning products without the need for a receipt. Furthermore, customers who spend US$600 in a year also achieve MVC status, guaranteeing free monthly shipping and more coupons.

How to Apply for Your Kohl’s Credit Card and Eligibility Requirements

The application process is standardized, as the bank evaluates the applicant for both cards.

Approval is granted based on a set of objective requirements related to age, location, income, and credit history.

Capital One does not report a fixed minimum salary, but is quite clear about the income requirement. The candidate must have a monthly income (annual declared income divided by 12) that is greater than the monthly spending on rent or mortgage by at least US$425. Other requirements you should know are:

1. Age and Location: Be over 18 years old and have an address in the United States (excluding territories).
2. Identification: Possess a Social Security Number (SSN) or an ITIN.
3. Minimum Income: Prove monthly income that exceeds housing expenses by at least US$425.
4. Credit Standards: must meet the institution’s credit standards. Specialized websites point out that a FICO credit score of 640 or higher (fair credit) significantly increases the chances of approval.

Step-by-Step Guide to Requesting the Kohl’s Credit Card

1. Initial Verification: The first step is to verify whether you meet the basic requirements of age, SSN/ITIN, address, and, mainly, the rule of monthly income versus housing expenses.
2. Documentation: Separate your identity document, SSN/ITIN, proof of income, and proof of residential address.
3. Application Location: You can apply for the card at a Kohl’s store with the help of an associate, or apply online on the Capital One website or the Kohl’s website.
4. Form Completion: The form requires personal data, annual income, and address. You must authorize the consultation of your credit profile.
5. Analysis and Approval: The bank analyzes your profile and decides whether you are eligible for the Kohl’s Rewards® Visa (the most complete card) or just the Kohl’s Credit Card (the store card).

If approved, the minimum initial limit is US$500. After approval, you will receive the physical card and will be able to generate a virtual card in the application.

Kohl’s Rewards Visa vs. Kohl’s Credit Card

Kohl’s, in partnership with Capital One, offers two cards with no annual fee, but with different functionalities and scopes of use.

The application process considers you for both cards, with Capital One determining approval based on its credit analysis and income profile.

It is important to note that the minimum initial limit established for both cards is US$500.

The first, and most comprehensive, is the Kohl’s Rewards® Visa. This is a co-branded card with the Visa flag, which means it can be used at any establishment around the world that accepts the flag.

On the other hand, the Kohl’s Credit Card (also known as a store card or closed-loop card), which is a closed card and can only be used in physical Kohl’s stores and on the Kohl’s website.

The main distinction is in acceptance and, consequently, in earning opportunities outside the store. Both cards are designed to reward loyal Kohl’s customers, but only one fully integrates into your daily expenses.

Conclusion (Kohls credit card)

The Kohl’s credit cards are, without a doubt, interesting for those who make frequent purchases in the network. Mainly due to the annual fee waiver and the robust rewards program of 7.5% in Kohl’s Rewards.

The initial discount of 35% or 40% is an excellent incentive to open the account.

However, the choice must be made carefully and based on your spending pattern. For those who want total flexibility, the Kohl’s Rewards® Visa is superior due to its Visa flag and rewards in other categories.

For those who only shop at Kohl’s, the Kohl’s Credit Card offers the same rate of return at the store, but without the balance transfer or cash advance functionalities.

With an APR of 30.24%, you must pay the invoice in full. Check if your monthly income exceeds the cost of housing by US$425 and if your credit score is in the range of 640 or higher.

Evaluate this data to decide which of the Kohl’s credit cards fits your financial planning.

If the income and credit criteria are not met, consider other credit card options on the market.

Another store credit card option you should consider is the Amazon credit card. It will allow you to earn cashback and save a lot on your purchases.