Arhaus Credit Card: An Honest Review
Recommended in specific cases. Use the Arhaus Credit Card cautiously. Requires special attention to on-time payments to avoid very high APR and/or fees.
Pros and Cons: Arhaus Credit Card
You can effectively create a no interest loan payment plan and spread out the payments of your furniture purchase with their special financing plan
Earn $100 reward dollars per $1,500 spent (only applies to purchases on the 6-month plan, no higher)
~30% APR interest rate is well above industry average
Extremely limited rewards program
Deferred interest means you will pay interest from the date of purchase if you don’t fully payoff the promotional purchase balance during promo period. At ~30% APR, this can make your purchase very expensive!
No interest promotional balance benefits only apply to one purchase
Monthly minimum payments are still required (you can’t make NO payments during the promo period). Making the minimum payments only will not pay off the full promo balance and will result in deferred interest charges.
- $100 reward dollars per $1,500 spent. Only applies if you choose the 6 month time frame for repaying the promotional purchase balance. This is essentially a 6% store points credit with lots of strings attached (see below).
- Rewards dollars expire after 12 months! That means use or lose.
- You receive a $100 “Archarge Rewards Certificate” for every $1,500 in Rewards Dollars you earn. This certificate expires 90 days after it is issued and can only be redeemed in an Arhaus store (excluding loft clearance locations).
- The minimum Rewards certificate is $100, so you have to spend a lot to get any rewards at all.
- 28.74% variable purchase APR.
- Variable means the rate will fluctuate. This card’s rate fluctuates with the Prime Rate.
- Due date / grace period: 25 days after billing period close.
- $0 annual fee.
- Late payments: up to $41.
- Returned payments: up to $41.
- Applications are subject to credit approval
- While they will take into account your total application, we recommend a credit score of at least 620 to be likely for approval
- Be 18 years old (or the age of majority in your state or territory)
- Have a government issued photo ID and tax identification number (for example a social security number)
- Be willing to provide a non-PO Box mailing address
- No additional perks or benefits identified.
Arhaus Credit Card: Extended review, all the details
Credit cards have already become a requirement inside the wallets of most people. Those cards make it much easier to make big purchases without feeling the guilt of handing over large stacks of dollars.
Because of that increasing popularity and ease of purchasing, store-specific credit cards have exploded in popularity over the past few years. These cards tend to be incredibly profitable for the store and credit card issuer and can act as a kind of virtual currency for their respective stores and offer various deals, promotions, and awards.
We’re shedding the light today on one of those cards; the Arhaus Archarge Credit Card.
We’ll be showing you the card’s benefits, any hidden catches, as well as the disadvantages of owning such a card.
So, let’s dive straight in ⏩ ⏩
Arhaus Archarge Credit Card: Benefits
Like any other credit card, Arhaus credit cards have reasons to get and reasons to avoid. Let’s start with the benefits:
Arhaus Archarge card members get some cash back as a reward for qualifying purchases. This goes for every $1,500 spent using the Arhaus credit card. The rewards are a bit clunky and difficult to collect, however. We’re cover details on this later.
The purchase needs to be made using the Arhaus credit card. If your Arhaus purchase is paid in cash or using a different credit card, no cash back rewards are given.
The Arhaus Archarge Credit Card provides special financing to payment plans of 6, 12, or 24 months. For each plan, the purchase has a minimum value to be able to qualify. The longer the financing plan, the greater the purchase required.
During the promotional period, the customer won’t be charged any interest rate on the product. Keep in mind that minimum payments are still required throughout the special financing period.
Convenient Online Account Management
Arhaus credit cardholders will have access to a neat and well-organized platform offered through Comenity bank, a large issuer and servicer of store credit cards. Customers will be able to track their purchases, payments, and upcoming due amounts.
Archarge Credit Card Exclusive Saving Events
Arhaus sometimes provides its customers with money-saving events and discounts on certain products.
While all customers can benefit from such offers, Arhaus credit cardholders gain access to exclusive events. They get to purchase some items at a lower price than their non-card-holding peers.
These special promotions might be nice if you’re a reasonably frequent Arhaus shopper, but probably aren’t reason enough alone to get the card.
No Annual Fee
Paying an annual fee isn’t a requirement to keep a hold of your Arhaus credit card. The absence of an annual fee is so common among credit cards now that it’s hardly considered a benefit.
However, because some credit cards still require an annual fee, its absence is still a good attempt to sweeten the deal.
Arhaus Credit Card: Between the Lines
The same applies to any credit card, and Arhaus is no exception. Here’s what you should be aware of to get the most benefit out of the Arhaus credit card:
You won’t always get the $100 cashback
The first benefit displayed on the Arhaus website is the purchase cashback. It truly sounds like a good deal, but you won’t get it until you meet certain conditions.
Only issued in increments of $100
Unlike with most credit card rewards programs, the Archarge Credit Card does not calculate rewards down to the dollar. In fact they only calculate it down to the $1,500. This means that you if you spend $1,500 and get the $100 rewards certificate, you have to spend an additional full $1,500 before you get any more rewards. You have to read the credit card agreement carefully to figure this one out! So much for picking up a couple of extra throw pillows!
Must enroll in the Arhaus Rewards Program
Unless you’re enrolled in the rewards program, you won’t be able to benefit from the promotional cashback reward.
Arhaus’ rewards program provides you with points every time you make a purchase. You can, later on, use those points to reduce the cost of some eligible items.
Enrolling in the program isn’t an automated process that comes with getting the Arhaus card. This is a step you manually need to pursue.
Luckily, it doesn’t take much time, and it’s especially worth it if you are a frequent buyer from Arhaus.
Cashback period is limited
Getting those $100 isn’t always possible, even if you are enrolled in the rewards program. If your purchase is using a special financing plan, you need to be careful.
Promotional financing plans longer than six months aren’t eligible for getting the $100 cashback benefit.
Your purchase must be yours
Purchasing Arhaus products using Arhaus credit cards won’t get you the $100 cash back if it’s done by or for a business.
Stock or Enterprise purchases aren’t eligible for the Arhaus cashback program. The customer must purchase the item for their own household.
Incomplete purchases won’t get the cash back award
The $100 reward is only earned after the full payment is complete. If the full amount is paid on the day of purchase, the cashback reward is instantly provided.
However, any changes in the conditions of payment during monthly payment plans could prevent acquiring the cashback reward.
These changes include but aren’t limited to returns, refunds, fraudulent charges, purchases that violate the terms and conditions, balance transfers, and credit adjustments.
Minimum purchase value is required
Your purchase needs to be of a minimum cost to be eligible for a promotional payment plan.
For example, If you intend to pay over a 6-month period, your purchased item must cost at least $399.
Promotional payment plans of 12 and 24 months have a minimum purchase value of $1,500 and $2,500, respectively.
Keep in mind that only the 6-month payment plan is eligible for the $100 cashback reward per $1,500.
Minimum payments are required
A minimum payment is the smallest amount of money you should pay every month for your monthly payment to be considered accepted. If you pay some money in a particular month that’s less than the minimum amount, the month is considered “missed.”
For example, you could pay a small amount this month and then make up for it in the following one. What matters is that everything should be paid by the end of the last month.
According to their website, Arhaus says, and we quote: “Minimum payments are NOT guaranteed to pay the promotional plan balance within the promotional period. You may have to pay more than the minimum payment to avoid accrued interest charges.”
It’s up to the customer’s personal effort to keep track of their purchases and due amounts.
Additionally, if you have a late fee, it may increase the new balance you are due, and therefore, the minimum payments will not cover the purchase.
Valid only for a single transaction
Arhaus promotional payment plans are valid for a single transaction per credit cardholder.
It’s not clear whether this purchase is the only purchase per card or the only purchase within the promotional payment period.
Arhaus Credit Card: Is it easy to acquire?
Getting your first credit card can sometimes be tough if you have little or no credit history for credit card issuers to base a decision on. The Arhaus credit card is probably not a great first card option. You will likely need to have a minimum credit score or credit rating to get this card.
To have a good shot at qualifying for an Arhaus credit card, a credit score of at least 620-670 is recommended. Arhaus doesn’t release its specific credit approval criteria, so having this score does not guarantee approval. You may still be able to get the card at a lower score, but it’s not guaranteed.
If you need to get your credit score up to qualify, that’s ok, but it may take time. There are various actions that control your credit score. For example, asking for higher credit limits, paying your credit card balances strategically, and paying the bills on time are all reasons for your credit score to go higher.
On the other hand, reduced credit score stems from late or missed payments, changing your credit mix, or constantly applying for new credit accounts.
Getting approval for credit cards is can be a hit-or-miss situation, especially for people with lower scores. However, having a high score always gives you better chances.
Arhaus Credit Card: Why you might not want it
Now that the benefits of the Arhaus credit card are clear, it would be useful to know the reasons that could steer you away from getting one:
High (and variable) annual percentage rate
An annual percentage rate or APR is the amount of money you are required to pay every year to borrow money.
Most credit cards in the US have an average APR of 15-17% if you have good or great credit. Arhaus credit card, on the other hand, has a variable APR of 29.74%, which is almost double the average!
The high APR may not be a problem for those who are planning to use the Arhaus credit card to fully pay off their purchase within the promotional period. However, if carrying a balance is on your credit card agenda, you’re better off picking a credit card with a lower APR.
High late and refund payments
Returning products or paying for them later isn’t something strange in retail. Because of that, there are mutual agreements about an extra charge should the customer return a product or pay for it too late.
Retailers average a $25 late payment fee and a $20 product return fee. Arhaus credit card has a penalty fee of up to $41 for both late and returned payments. Again, that’s close to double the average.
Limited usage of the card
Arhaus credit card is like most store-specific credit cards when it comes to usability. It might get accepted by other retailers (we haven’t tested that), but most store credit cards don’t.
Potentially, Arhaus credit cards could be limited to Arhaus only. It could be essentially Arhaus store credit. Unfortunately, their website and offering documents are not clear on this at all. We think it’s likely it’s only accepted at Arhaus.
Arhaus Archarge Credit Card: The Verdict
To sum things up, the Arhaus credit card could be really helpful if you know your way around credit cards.
If you have already dealt with credit cards and know how to handle yourself without getting into debt, an Arhaus credit card could be a good addition to your wallet.
With the right planning, you get most of the mentioned benefits without falling into any of its pitfalls. You should also refrain from using the Arhaus Archarge credit card to carry a balance and actually borrow money; the APR is just too much.
If you don’t find the benefits to be viable enough for you, you may be better off using a different credit card, especially one that would offer less APR and interest rate.
At Personal Finance Guru, we want to help you maximize your lifestyle through personal finance. You can trust the integrity of our independent financial advice. Our opinions our own and have not been provided, review, approved, or endorsed by any advertiser or financial product provider. To support and grow the site, however, we may receive compensation from the issuers of some products.