Michaels has launched a store credit card that promises big savings on glitter, glue, googly eyes and more — but with a tiny rewards-redemption window, only the craftiest shoppers will reap what they, um, sew.
The $0-annual-fee Michaels Credit Card, issued by Comenity Bank, earns 9% back in rewards on purchases at the retailer, both in-store and online. In addition, cardholders will also have access to the following perks:
A one-time 20% discount on your first purchase using the Michaels credit card.
Periodic free shipping offers for online orders with minimum purchase.
Periodic offers for special financing.
Cardholders must also be members of the free-to-join Michaels Rewards loyalty program to collect rewards.
The 9% rewards rate doesn’t come from the Michaels Credit Card alone. The store’s rewards program already offers 3% back in rewards on all eligible Michaels purchases. In addition, members who’ve spent at least $300 in eligible purchases at Michaels over the past 12 months earn 6% back. So if you’re already earning 6% back on Michaels purchases, the Michaels credit card gives you a 3% boost.
Is the Michaels Credit Card a good deal?
At first glance, the opportunity to earn 9% back in rewards sounds like a maker’s dream. But there are a few caveats that may dim the sparkle.
First, the Michaels Credit Card is closed-looped, meaning it can be used only at Michaels. Similarly, the rewards you earn are redeemable only with Michaels. (You’re earning 9% back in “store rewards,” not cash back.)
And speaking of redemption, it will require some tracking. Anytime you reach a $5 threshold of earned rewards, those rewards will be issued via email within 72 hours as a rewards voucher. They’ll also appear in your account online or in the Michaels app. But those vouchers expire 32 days from the date of issue.
That makes it challenging to save up rewards for a big purchase, and unless you’re a frequent Michaels shopper, it may be hard to use your rewards regularly before they expire.
Like most store credit cards, the Michaels card carries a high 29.99% APR (as of this writing). So if you carry a balance month to month, that will likely cancel out any rewards you earn.
Suppose you’re a more occasional crafter and don’t want to worry about keeping track of rewards expirations. In that case, you may be better off combining Michaels’ free-to-join rewards program with a general-purpose cash-back credit card, which will offer far more flexibility.