Macy's Credit Card Review: Worth It?

Are you thinking of filling out a Macy's credit card application? Before you sign, read the this review for the pros and cons.

Shoppers who know how to find Macy's coupons when the store has big sales and where to find the discounted racks feel a high when they walk off with their bags full of work outfits, everyday clothes, and home goods. They feel like they got a steal. Macy's knows its most loyal shoppers keep coming back for the deals and hope, of course, that they'll spend some of their money on full-price items as well. To entice them further, the store teases shoppers with extra in-store promotions available only to Macy's Star Rewards Cardholders.

Macy's offers two types of credit cards:

• The regular Macy's store credit card that can only be used for Macy's purchases
  
• The Macy's American Express that can be used wherever AMEX is accepted. This version has a few more benefits.

Both have no annual fee. Both cards offer rewards based on what level of customer you are: Preferred, Elite, or Premier Elite. Elite status can be achieved after a certain annual spend on Macy's purchases. We'll go over that below.

Both cards have some good benefits if you're a loyal Macy's shopper, but some drawbacks as well. Do they make a worthwhile addition to your wallet?

Read on to find out. But first, check out some current credit card promotions you should not ignore.

Macy's Credit Card Review

madhouse Macy's at Xmas © Eric Mueller (CC BY-SA 2.0) via Flickr

Cardholder Tiers and Rewards

The way the cards work is that as you spend more on Macy's and macys.com purchases (per year), you can reach elite status, which comes with more and more rewards.

Extra Macy's American Express Cardholder Benefits

If you have the AMEX version of the Macy's card, you have some extra benefits. These apply for all cardholder tiers:

• Plenti members get 3 points per $1 at restaurants (outside of Macy's)
  
• Plenti members get 2 points per $1 at gas stations and supermarkets
  
• Plenti members get 1 point per $1 on qualify Macy's purchases and other purchases made on your Macy's AMEX card
  
• Exclusive discounts on dining out and shopping with Macy's partner merchants
  
• Exclusive deals on travel for flights, hotels, car rentals, cruises, and vacation packages

Macy's and AMEX are partnered with Plenti, so your spendings on the card will earn Plenti points (1000 Plenti points = $10). This gives you more options in how you redeem them. Plenti points can be used at partner merchants, including Macy's, Rite Aid, Exxon Mobile, Chili's, and Expedia.

You need to sign up for Plenti separately (it's free to join). You must remember to link your accounts to get the points. You can join online at macys.com/plenti.

Other Benefits

• No annual fee: Neither version of the Macy's credit card charges an annual fee.

• Less stringent credit requirements: Store cards don't have as high credit qualification as regular credit cards. If you have fair/average credit, you may have a better chance of being approved for the Macy's store card. Most cardholders have credit scores of 650+, but there are reports of people who get approved with less too.

  Of course, the AMEX version of this card has higher credit requirements.

• Discounts: Based on your cardholder level, you'll get Macy's Star Passes throughout the year (3 for Preferred, 6 for Elite, and 12 for Premium Elite). You may also get surprise discounts at the register. They can be either a certain percentage off your purchases or a dollar amount discount.

• Thanks for Sharing Rewards: This only available to Macy's cardholders. You do have to enroll in this program for $25/year, but you get 10% rewards on eligible Macy's or macys.com purchases. A portion of the membership fee benefits charities such as Go Red for Women, Make a Wish, and Children's Cancer Research Fund.
  How to enroll in Thanks for Sharing: You can enroll either at your local Macy's store, online at macys.com/thanks, or by phone at 1-888-933-6229.
  

• Macy's Registry Star Rewards: Again, this is only available for cardholders. If you're getting married, you can enroll in the Registry Star Rewards programs. You will receive 10% rewards for eligible purchases made until your wedding day AND 5% rewards for the total value of Macy's gifts you receive (from your wedding registry and bridal shower registry). You will get the rewards as a Macy's Gift Card 45 days after your wedding date.

Disadvantages

• Limited Rewards: The regular Macy's Credit Card doesn't earn any rewards at all. It only sends out coupons and may give you savings at the register. The American Express version can earn more Plenti points, but it's still not as good as getting cash back. You can join the Thanks for Sharing program for 10% rewards on Macy's purchases, but it's not free to join.

• High Interest Rates: The variable APR for Macy's cards is 26.24%. That's toward the high end of the credit card interest rate range. You don't want to carry a balance if you can help it.

Who It's Best For

Macy's © Tinou Bao (CC BY 2.0) via Flickr

If you're a frequent Macy's shopper with decent credit (you shop there at least four times a year and have a score of at least 650), it's probably worthwhile to have the Macy's credit card in your wallet.

Even though you won't earn any rewards on your spending with the store-only version of the card, the discounts you'll receive throughout the year are likely to be much greater than what you'd earn under the rewards/cash back structure of a different credit card.

If you do join their Thanks for Sharing program for $25/year, you will receive 10% rewards on eligible Macy's purchases. This is a very high reward rate. But you'll have to spend at least $250 on eligible purchases to justify the fee.

Make sure you can pay off the balance in full each month, though. If you don't, the high interest charges will quickly erase any discounts you get.

Alternatives

If you're only a casual Macy's shopper, you're probably better off using another card. Consider these alternatives, depending on what type of spender you are:

If you like cash back rewards:
There are cards that offer 5% cash back in quarterly rotating categories. Sometimes, one of the quarters will have department stores as a bonus category. During that time, you can get 5% cash back at Macy's.

• Discover It will match all the cash back you've earned at the end of your first year. This offer is only for new customers. This card earns 5% cash back in bonus categories that change each quarter (up to the quarterly maximum; requires free activation each quarter). All other purchases earn 1% cash back.

If your credit isn't so great:
If you're considering the Macy's store card because your credit isn't great, there are other options too. There are other cash back cards that caters to those with average credit, and some even offer rewards.

• Capital One QuicksilverOne Cash Rewards Credit Card earns 1.5% cash back on all purchases. There is a $39 annual fee.

Bottom Line

For loyal Macy's fans, you will get use out of the regular store card. It doesn't have an annual fee and you will earn some nice discounts throughout the year. Just make sure you can pay off your balance in full each month.

If you want to go for the American Express version, then we think there are other cards out there with a better reward system, including other American Express credit cards. The AMEX version only earns Plenti points (provided you're a Plenti member). General cash back cards will also give you more flexibility in how you want to redeem your rewards.

Terms and limitations apply. The information for the Macy's Credit Card and Macy's American Express Card has been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer. Pricing information including interest rates, benefits and fees was obtained on August 31, 2017 from published websites and is believed to be accurate, but not guaranteed. Please see issuer's website for details including terms and conditions.