The most popular credit card issuers on the market today — Capital One, Chase, Citi, American Express, Discover, and Bank of America — really need no introduction. Most people have heard of them, and it’s not uncommon for consumers to carry their credit cards with them.
However, some card issuers are not well known, including Comenity Bank. The card issuer offers dozens of credit cards from popular retailers like Biglots, IKEA, and Ulta Beauty.
The most popular credit card issuers on the market today — Capital One, Chase, Citi, American Express, Discover, and Bank of America — really need no introduction. Most people have heard of them, and it’s not uncommon for consumers to carry their credit cards with them.
However, some card issuers are not well known, including Comenity Bank. The card issuer offers dozens of credit cards from popular retailers like Biglots, IKEA, and Ulta Beauty.
What is a convenience bank?
Founded more than 35 years ago, Comenity Bank is a specialty bank that works primarily with merchants to provide credit cards to businesses. It currently offers over 145 business credit cards at retailers around the world. It also offers high-yield savings accounts and certificates of deposit through its online bank, Comenity Direct.
Unlike other banks, Comenity Bank does not have a physical location for customers to visit. If you need to contact them, you can do so via phone, their website or their mobile app.
Businesses that offer retail credit cards through Comenity Bank
Comenity Bank offers over 145 credit cards at various merchants. While many retailers are outside the U.S. or only regionally relevant, the bank also offers a number of cards for the big brands everyone has heard of. Some of the most popular business credit cards are:
- ALL Rewards Credit Card (Ann Taylor, LOFT)
- Victoria’s Secret Credit Card
- Bed Bath & Beyond® Mastercard®
- Burlington Credit Card
- Big Lots Credit Card
- Ultamate Rewards® Mastercard® (Ulta Beauty)
- My Place Rewards Credit Card (The Children’s Place)
- IKEA® Visa® credit card
- Eddie Bauer Credit Card
- J.Crew Credit Card.
Is the Commenity card part of the Visa or Mastercard network?
Some Comenity Bank cards are included in major card networks like Visa and Mastercard, which means they can be used almost anywhere. An example is the Bed Bath & Beyond Mastercard, which can be used anywhere Mastercards are accepted. Other Comenity Bank cards are loyalty cards, which means they can only be used in a specific store or family of stores. A good example is a high-volume credit card, which can only be used to buy from high-volume.
Are Commenity Bank and Synchrony Bank the same?
While consumers often confuse Comenity Bank and Synchrony Bank, the institutions are separate. Both offer a range of credit cards from major brands, so their products are sometimes lumped together.
Is a CombiBank credit card right for you?
Convenience Bank offers a variety of credit cards, so the decision to apply depends on which card you are interested in and your spending habits. However, business credit cards have unique advantages and disadvantages. If you’re considering a Comenity-issued card, weigh the pros and cons and remember to read the fine print.
Advantage
- Get even more rewards when you buy from your favorite brands. If you already shop at a particular store on a regular basis, why not earn cash back or points for your loyalty?
- Get an introductory bonus or discount. Like many credit cards, many of the cards issued by Comenity offer introductory bonuses to new cardholders. For example, if you spend $500 outside of Ulta Beauty in the first 90 days, the Ultimate Rewards Mastercard will give you 500 bonus points.
- Build credit. Retail credit cards are generally easier to get approved than top premium credit cards, which usually require good credit. If you’re looking for a card to earn rewards as you build up your funds, a business credit card might be a good place to start.
- Comenity’s EasyPay feature. Most cards issued by Comenity offer EasyPay, a tool that allows you to pay your bills with just a few identifying details instead of logging into your account with a username and password.
Disadvantages
- Inflexible rewards program. Retail cards may be limited in redemption options. For example, the Eddie Bauer credit card rewards only apply to certificates for other Eddie Bauer merchandise. However, some cards have more flexible programs.
- Limited use. Certain cards issued by Comenity can only be used at the relevant merchant. For example, you can’t use your J.Crew credit card to buy groceries – it can only be used for J.Crew online or in-store purchases.
- Above-average interest rates. Business credit cards are notorious for charging high interest rates. If you tend to carry a balance with you, consider a low-interest credit card.
- Lack of physical location. Convenience Bank has only one location, its corporate headquarters in Wilmington, Delaware. This can be a major disadvantage if you want to talk face-to-face with a representative.
Alternatives to Courtesy Bank Credit Cards
Know that retail credit cards can sometimes be limited, so consider a credit card that offers rewards for purchases at any department store, not just one. Another option to consider is cash back credit cards, many of which can be earned at a fixed premium rate and have no annual fee. You can often redeem rewards for cash back in your bank account, gift card, bank statement, and more. Here are some loyalty card alternatives to consider:
Our Cash at Bank+® Visa Signature® Card
The U.S. Bank Cash+® Visa Signature® Card has no annual fee and offers 5% cash back quarterly on two qualifying tiers of your choice (up to $2,000 in combined purchases per quarter, then 1%). The two category options for the first quarter of 2022 are department stores and select clothing stores. You’ll also get 2% back on the daily category of your choice and 1% back on all other eligible purchases. Make sure you pick your collectibles quarterly or you’ll only get 1% back on all purchases.
The card also includes a welcome bonus of $200 cash back after you apply online and spend $1,000 within the first 120 days of account opening.
Bank of America Custom Cash Rewards Credit Card
The Bank of America® Custom Cash Rewards Credit Card also has no annual fee and offers 3% cash back in the categories you choose: gas, online shopping, dining, travel, drugstore or home improvement. You’ll also get 2% cash back at grocery stores and wholesale clubs and 1% cash back on all other purchases. Earn a higher reward rate in the combined 3% and 2% category up to $2,500 per quarter, followed by 1% back. If you’re a large online shopper, this card offers great rewards payouts.
The Bank of America Custom Cash Rewards Card offers a $200 Online Cash Rewards Welcome Bonus after spending $1,000 within the first 90 days of account opening.
Citi Double Cash Card
The Citi® Double Cash Card is a popular cash back card because you get 2% back on all purchases – 1% on purchases and 1% on withdrawals. There is no annual fee, and you can redeem your rewards for bank statements, direct deposit, checks or CitiThank You Points. Unfortunately, there are no welcome offers for new cardholders.
Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card also offers unlimited 2% cash back on your purchases with no annual fee. You can redeem cash back for statement balances, physical cash (from Wells Fargo ATMs), direct deposit, gift cards and travel. New cardholders also get a $200 welcome bonus after spending $1,000 in the first three months.
Final Note: Commenity Bank Debt Collection Practices
It’s important to note that Comenity Bank was sued by the Federal Deposit Insurance Corporation (FDIC) and forced to pay settlements for fraudulent practices related to the marketing of credit card “add-on” products and services. In doing so, Comenity informs customers that if they do not have an account balance, their product will not incur any fees, but they will be charged anyway. The bank also misrepresented or omitted information about product cancellations and conditions required to receive rewards.
Convenience Bank may have learned its lesson — it had to pay more than $50 million in severance. However, consumers using its products should ensure that they are not charged undisclosed fees or held hostage through other fraudulent practices.
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