Comprehensive review of Big Lots credit card – The Points Guy

Overview of the Big Lots Credit Card

If you frequently shop at Big Lots, you might be considering their credit card. However, due to its poor rewards structure and limited usability exclusively at Big Lots, you’re likely better off opting for a general rewards credit card. Card rating*: ⭐

*The card rating reflects the viewpoint of TPG’s editors and remains unaffected by the card issuer.

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Frequent shoppers of a specific brand might find store cards attractive. These cards can also be appealing to individuals with no or low credit, as they are generally easier to get approved for. If you fit either of these profiles, you might be considering if the Comenity Bank Big Lots credit card is a suitable option.

However, even if you’re a dedicated Big Lots customer, it’s probably best to steer clear of this card. Its earning potential is very restricted, and there are significant limitations on how you can use the rewards you accumulate.

The Big Lots credit card does not have an annual fee and is recommended for individuals with a credit score of 650 or above.

Now, let’s explore the specifics of the card and discuss why it falls short of making an impact.

The Points Guy has independently gathered the information regarding the Big Lots credit card. The details about the card on this page have neither been reviewed nor supplied by the card issuer.

Advantages and disadvantages of a Big Lots card

Related: Tips for selecting the right credit card for your needs

Big Lots card introductory offer

Numerous store credit cards may lack a conventional welcome bonus, yet the majority typically provide new cardholders with a discount on their initial in-store purchase using the card.

The Big Lots card, unfortunately, falls short right away as it does not provide any form of introductory bonus or discount for new cardholders.

Related: Here are the top credit card sign-up bonuses you can get right now.

Advantages of a Big Lots card

Considering that this card doesn’t have an annual fee, it’s not unexpected that the Big Lots credit card issued by Comenity offers limited standard benefits. This card does not provide statement credits, free memberships, or purchase protections.

One of the most appealing advantages of this card is the deferred interest financing available for qualifying purchases. If you clear the full balance of the promotional plan within the specified period, you won’t incur any interest charges. You have six months to pay off purchases ranging from $250 to $749, and 12 months for purchases of $750 or higher.

Be aware that this pertains to deferred interest, meaning that interest continues to accumulate throughout this timeframe. If even a small amount is left unpaid when the period ends, you will be required to pay all the interest that has accumulated over the six or twelve months.

As a cardholder, you’ll receive exclusive member offers and have the option to pay your card bill in-store. These advantages are beneficial, though somewhat limited, for frequent Big Lots customers.

Related: Monthly checklist: Credit card perks and benefits you ought to utilize

Accruing and utilizing benefits with the Big Lots card

Compared to numerous other cards available, the rewards system for the Big Lots card is remarkably poor.

To begin with, this is a closed-loop card, so you can only use it at Big Lots and not at any other locations.

Even if you use this card for Big Lots purchases, you will only accumulate rewards after reaching a certain spending threshold rather than on each purchase. For every $100 spent at Big Lots, you will receive $5 in Big Lots rewards.

An additional condition: To earn rewards, you are required to spend $100 within a specified timeframe. The four earning periods are: February 1 to April 30, May 1 to July 30, August 1 to October 31, and November 1 to January 30. Only the spending that occurs within each earning period counts toward earning rewards, and any unused spending amounts are reset at the end of each period.

If, for example, you spend $95 at Big Lots between November 1 and January 30, that $95 will not be considered for rewards starting from February 1. To receive your $5 reward, you must make additional purchases totaling at least $5 by January 30. Otherwise, you will begin February from scratch with no rewards accumulated.

The one comforting aspect is that it’s possible to receive several $5 rewards within the same earning period.

As is common with store cards, the rewards you accumulate on the Big Lots card are only redeemable for in-store transactions. However, with this card, you’ll need to act promptly — your rewards will expire 60 days after being issued.

That doesn’t provide you with ample time to utilize your rewards, nor does it permit you to accumulate rewards over an extended period for a significant purchase. Unless you shop at Big Lots frequently enough to earn several $5 rewards, it’s challenging to find substantial value in this program.

Considering the poor earnings structure of this card and the minimal value its rewards offer to most users, the majority of people would be better off choosing a standard cash-back or travel card.

Related: Top store credit cards

What are the competitor cards to the Big Lots card?

Numerous cards not only rival the Big Lots card but also outperform it in various aspects. Whether you are seeking a superior rewards card, one with more flexible redemption choices, or a more advantageous card for financing, there is a suitable option available.

• If you’re looking for a card with a more advantageous earnings structure: TheCiti Double Cash® Credit Card(see rates and fees) is a superb card for routine spending. This card doesn’t have any bonus categories to monitor. Instead, you earn 2% cash back on all purchases (1% when you buy and 1% when you pay) without any caps. The Double Cash card offers much greater flexibility compared to the Big Lots card. For additional details, check out our comprehensive review of the Citi Double Cash.
• If you’re looking for a card with excellent redemption options: The Chase Sapphire Preferred® Card offers access to Chase’s 14 transfer partners, enabling you to obtain up to 2.05 cents per point in value (according to TPG’s valuations). This represents some of the highest value available from any credit card rewards. Additionally, you’ll collect bonus points across multiple categories, such as travel and dining. For further information, check out our comprehensive review of the Chase Sapphire Preferred.
• If you’re looking for a better card for financing: Opting for a card that offers an adequate no-interest financing period might be a better choice if you need to finance a significant purchase at Big Lots.The Wells Fargo Reflect® Card(see rates and fees) provides a 21-month 0% introductory annual percentage rate. Following the introductory period, you’ll get a variable APR of 18.24%, 24.74%, or 29.99%, based on your creditworthiness. Twenty-one months is significantly longer than the Big Lots card offers. For further details, check out our comprehensive review of the Wells Fargo Reflect.

For more alternatives, take a look at our top choices for new cards with 0% introductory APR and the best cards for daily spending.

Related: Why I’ll always keep the Citi Double Cash in my wallet

Is the Big Lots card valuable?

Unless you’re an avid Big Lots enthusiast solely interested in earning rewards while shopping there, the Comenity Big Lots credit card isn’t worth it for me. Although its deferred interest financing program may appeal to those planning a significant purchase at Big Lots, there are superior financing options available if that is your primary objective for a credit card. If you’re seeking a card that earns rewards at Big Lots, consider a more general card, such as theCiti Double CashAlternatively, the Chase Sapphire Preferred is a significantly superior option.

Related: Should I choose a store credit card or a cash-back credit card?

Bottom line

We seldom suggest store cards, and we strongly advise most individuals to avoid the Big Lots credit card. Even if you find the limited perks useful, you will very likely receive superior rewards and benefits from an alternative credit card.

Related: The top initial credit cards

The credit ranges provided by The Points Guy are based on the FICO® Score 8 model, which is just one among various credit scoring systems. When you apply for a credit card, the financial institution may evaluate your application using a different credit score model.