T.J. Maxx Credit Card Review: Great for Shoppers but Lacking Elsewhere
Review
Updated
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If you're a fashionista on a budget (or if you just have a lot of kids to clothe), the T.J. Maxx credit cards might have piqued your interest. There are two of them -- the TJX Rewards® Platinum Mastercard® that can be used anywhere, and the TJX Rewards® Credit Card that can only be used in-store.
Since they don't carry an annual fee, you may think there's no harm in applying for either card -- it's essentially free rewards, right? That's largely true, but as you'll see in our T.J. Maxx credit card review, for most people these cards are a bit more of a tired tchotchke than a shiny bargain. If you're good at scoping out deals on your wardrobe, it's likely you can find better deals for your wallet as well.
Good earnings rate for TJX brand purchases: Each card will give you 5% back in TJX stores towards TJX Rewards Certificates. This is a pretty good rewards rate, on par with some of the highest cash back credit cards.
Use your card to earn rewards from multiple brands: The cards say "T.J. Maxx" on them, but you can also use them to buy things at Marshalls, HomeGoods, Sierra (formerly Sierra Trading Post), and Homesense stores. These are all great stores for people scouting out deals.
Automatic rewards redemptions: These cards have one of the easier rewards redemption options we've seen. Instead of fussing with external accounts or debit cards, you'll simply get a Rewards Certificate in the mail with your statement when you've accumulated enough points. These are sent out automatically in $10 or $20 amounts, so if you don't have enough points they'll roll over until you do.
No annual fee: These cards don't come with an annual fee. Which is a good thing, considering there's a pretty long list of drawbacks.
Read more: Best No Annual Fee Credit Cards
We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.
| Offer | Our Rating | Welcome Offer | Rewards Program | APR | Learn More |
|---|---|---|---|---|---|
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Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Discover will match all the cash back you’ve earned at the end of your first year. | 1% - 5% Cashback Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases. |
Intro: Purchases: 0%, 15 months Balance Transfers: 0%, 15 months Regular: 18.24% - 27.24% Variable APR |
|
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
$200 cash rewards Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. | 2% cash rewards Earn unlimited 2% cash rewards on purchases. |
Intro: 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers Purchases: 0% intro APR, 12 months from account opening Balance Transfers: 0% intro APR, 12 months from account opening on qualifying balance transfers Regular: 19.24%, 24.24%, or 29.24% Variable APR |
|
Apply Now for Bank of America® Travel Rewards credit card
On Bank of America's Secure Website. |
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
25,000 points 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases | 1.5-3 points per dollar Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees, and your points don't expire as long as your account remains open. Earn 3 points per $1 spent on travel purchases booked through the Bank of America Travel Center. |
Intro: 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.24% - 28.24% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers. Balance transfers may not be used to pay any account provided by Bank of America. Purchases: 0% Intro APR for 15 billing cycles for purchases Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days Regular: 18.24% - 28.24% (Variable) |
Apply Now for Bank of America® Travel Rewards credit card
On Bank of America's Secure Website. |
Application process: There's only one application for both cards. You don't get to choose which one to apply for -- you fill out the form and see which one they decide to offer you, if any. If you're hoping for the higher-end TJX Rewards® Platinum Mastercard® and all you get offered is the TJX Rewards® Credit Card, for example, you've just added another credit inquiry to your report and potentially dinged your credit score for nothing.
Poor earnings rate on non-TJX spending: Speaking of the differences between these cards, you can only use the TJX Rewards® Credit Card at TJX stores and nowhere else. You can, however, use the TJX Rewards® Platinum Mastercard® elsewhere, but you'd be better off avoiding it if you have better rewards card options. That's because it only earns 1 point per dollar spent on non-TJX purchases.
Limited rewards use: We hope you like these brands, because you can't use your Rewards Certificates for anything else. You can't get cash back or gift cards -- just discounts on T.J. Maxx brands, and that's it.
Rewards Certificates expire: It's nice that the company sends out your rewards automatically. But that also means you have to actually use the rewards on a regular basis, because each Rewards Certificate has a two-year expiration date. In other words, you can't save up your rewards and then redeem them on a mega shopping spree.
High interest rate: We recommend avoiding this card entirely if you think you might carry any balance at all. If you pay off your balance each month you won't have to pay any interest. But if you don't, you'll have to pay a sky-high interest rate. If you need to finance your clothes or other purchases, choose a credit card with a lower interest rate or better yet, one with a 0% intro APR offer.
No 0% intro APR offer: Speaking of 0% intro APR offers, these cards don't have any of them. It's pretty standard for retail credit cards to offer you some sort of discount financing after you open the card, but this one doesn't. It's yet another reason to never carry a balance on this card.
Lackluster perks: It's also fairly common for retail cards to offer a jackpot sign-up bonus, fancy perks, or other nice touches to entice you. Don't get us wrong, the T.J. Maxx cards do offer perks -- they're just not as shiny as we would expect. The only extras you get are a 10% discount on your first purchase after you sign up and access to "exclusive private shopping events," whatever those are. We think T.J. Maxx could do much better.
Compare credit card rewards, fees, APRs, and more using our side-by-side comparison tool.
You'll want fair to good credit -- a score of at least 620 -- when applying for these credit cards. Ideally, aim for a higher score of at least 670.
Remember that a high score isn't a guarantee of approval, and a low score doesn't always mean you'll be denied. Other factors, such as your income, existing debts, and credit history will be taken into consideration.
Read more: Best Credit Cards for Fair/Average Credit
If you're a frequent shopper at T.J. Maxx or one of the other store brands under the TJX umbrella, you're unlikely to find a traditional credit card product that matches the high rewards rate on purchases at TJX stores, unless it's part of a limited-time rotating bonus category.
While you could use the TJX Rewards® Platinum Mastercard® outside the TJX family of stores, frankly, the rewards rate on other purchases doesn't quite measure up to many other cash back and travel rewards credit cards. And don't forget that it has an extremely high APR.
These credit cards are only really useful only at TJX stores and websites. And only if you plan to pay off your balance in full each month because otherwise any cash back you get will be more than wiped out by interest charges. If you're not a frequent shopper at TJX stores, or you plan to carry a balance, you're probably better off looking at a traditional credit card.
At Motley Fool Money, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.
We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how Motley Fool Money rates credit cards.
T.J. Maxx credit cards often have low credit limits, and many cardholders start with a credit limit of $200. There is the possibility of receiving a higher credit limit depending on your creditworthiness.
The TJX Rewards® Platinum Mastercard® can be used anywhere Mastercard is accepted.
The TJX Rewards® Credit Card can only be used at:
When you apply for a T.J. Maxx credit card, you could be approved for either one depending on your credit profile.
Yes, a T.J. Maxx credit card can build credit if you use it regularly and pay the bill on time. The card issuer reports activity to all three consumer credit bureaus.
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