Arhaus Credit Card: An Honest Review [With Lots of Pictures]

Pros and Cons: Arhaus Credit Card

Cons

Arhaus Credit Card: Extended Review, With 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 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 ⏩ ⏩

I recently visited my local Arhaus to check it out for myself, as well as verify all of the facts (and opinions!) in this article

Rewards

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.

Special Financing

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.

You can purchase an entire room’s worth of furniture like this at Arhaus

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.

They have lots of comfortable couches

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.

A beautiful credenza I saw

The 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.

Arhaus has lots of office furniture too

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.

You can use the Archarge card to buy this beautiful bookcase

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.

Check out out this bedroom set at Arhaus

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.

A graceful kitchen table

Why Would You Want an Arhaus Credit Card?

We recommend using it when making a large furniture purchase where you would like to spread out the payments but will be able to pay in full within the promo period. Or in the rare case that a piece of furniture is urgently needed, but you don’t have the case. We don’t see this as a usual scenario, but emergencies could happen at any time.

Should such a scenario occur, make sure that you have enough to cover the minimum payments steadily and will have enough to pay off the full purchase price within the promotional period. At ~30% interest, if you don’t pay off fully within the promo period, your furniture purchase will get more expensive fast!

Why Would You Be Better off Using a Different Card?

Since an “emergency purchase” for a piece of furniture is highly unlikely, you may have a better deal with a different card.

Credit cards aren’t a scam, but their providers know they can make a great profit from the APR and interest rate.

Customers often think that they can easily meet the monthly payments until the due is paid. However, circumstances keep changing, and miscalculations happen. According to data taken in 2018, the amount of credit card debt in America has passed the $100 billion mark! Whoa!

With a ~30% interest rate, the Arhaus credit card could stack some debt faster than you could handle.

You can easily put together an entire living room

Do You Really Need an Arhaus Archarge Credit Card?

Getting an Arhaus credit card isn’t a bad bargain if you’re not planning to carry a balance and actually borrow money. Most people can borrow for cheaper interest rates.

If you’re making a large furniture purchase from Arhaus and know you’re responsible enough to keep track of the required payments then you can squeeze out some extra benefits and essentially a payment plan with this card.

Just make sure that you will be able to cover those monthly minimum payments to avoid paying extra.

Do We Recommend Getting an Arhaus Archarge Credit Card?

Looking at the entire situation from a comparative pros and cons aspect, we’d say that we recommend the Arhaus credit card in specific situations, for responsible users of credit.

The $100 cashback, the promotional payment plans, and the exclusive events are good eye-catchers. If you know how to avoid falling into debt while using credit cards, and want to spread out payments of a major purchase at Arhaus, an Arhaus credit card is for you.

However, the 29.74% APR, while typical for store-brand credit cards, gives us significant pause.

Arhaus Credit Card FAQ

What bank does Arhaus use?

Arhaus uses Comenity Bank for their credit card (recently renamed to Bread Financial), which is one of the largest issuers of store credit cards in the United States.

What is the number for Arhaus credit card?

1-888-245-4064 is the Arhaus credit card phone number.

What are the fees for Arhaus Archarge Credit Card?

33.99% APR interest. $41 late payment fee. $41 returned payment fee. $0 – no annual fee. 

What are the Arhaus Archarge Credit Card benefits?

The main benefit is its special financing offer. 

About Arhaus

Arhaus is a high-end American retail company that was founded back in 1986 by John and Jack Reed. It originally went by the name Homeworks Inc. and changed its name to Arhaus in 2013. The first official Arhaus stores were opened in Arizona and California.

After 2014, the company seemed to grow at a reliable rate. In 2015 alone, Arhaus opened seven new stores, bringing the total number of stores across the United States to 60. By 2021, Arhaus had increased its store count to 70 and was valued at $1.75 billion.

Arhaus specializes in all sorts of modern and classic home furniture—tables, beds, sofas, tableware, lighting, etc.

According to Arhuas, 50% of their woodwork comes from recycled materials. The company claims that it doesn’t source any materials from endangered rainforests, which appeals to a lot of customers who are environment-conscious.

About Comenity Bank

Like most stores and retailers who want to offer a credit card, Arhaus has outsourced issuing and servicing the card to a bank. In this case Comenity bank. Comenity bank is a subsidiary of Bread financial, a large, public, financial services company.

Comenity/Bread issues and services over 150+ of these private label credit cards. It was founded in 1983 and is headquartered in Ohio.