Dillard’s Credit Card – Shoppers Beware

Dillard’s offers two types of credit cards. The Dillard’s Card is one that can only be used within the Dillard’s store. The Dillard’s American Express Card can be used in both the store and anywhere American Express cards are accepted.
Dillard’s boasts that both cards offer rewards and advantages, but the disadvantages far outweigh any types of rewards you could receive with either of these cards.

Dillard’s American Express Card

When you initially apply for a credit card with Dillard’s, the credit application will first check to see if you are creditworthy of receiving the Dillard’s American Express Card. This card can be used anywhere American Express is accepted.
Therefore, it will give you more freedom in where to spend your money, but fewer rewards when you spend outside of Dillard’s. For every dollar you spend at Dillard’s, you will receive 2 reward points. When using the card outside of Dillard’s, the rewards are only one point per dollar.
Very Important: A much better way to earn rewards at Dillards (and all other department stores) is with Blue Cash Everyday Preferred which will give you 3% cashback on all department store purchases regardless of where you shop. With Blue Cash you also receive 6% cashback on groceries, 3% back on gas and 1% back on everything else.

Interest Rate on Dillard’s American Express Card

The interest rate on the Dillard’s American Express Card varies based upon your credit score. The rate can go as low as 13.24% and as high as 21.99%. Although 13.24% is lower than most store cards, this still is not a great rate.
In addition, the 21.99% hardly makes using the card worth your while. As a side note, you also will be charged a fee for any balance transfers or cash advances. This charge is 4% of the amount transferred or $10, whichever is greater. This is not a great incentive to do a balance transfer considering you are paying a fee and not getting any breaks on the interest rates.

Dillard’s Card for Store Only

If you are not creditworthy to receive the Dillard’s American Express card, then you will receive the Dillard’s Card, for store use only, by default. GE Money Bank backs the Dillard’s Card, which is the mother of all high-interest rate cards.
The Dillard’s Card states you will receive two Dillard’s reward points for every dollar you spend.
Once you reach 1500 points, which is $750 charged to your card, you are eligible for a 10% off the pass or a $10 reward certificate. Receiving a $10 coupon for spending $750 is not a reward at all.

Warning: Extremely High-Interest Rate

When reviewing the interest rate of the Dillard’s Card that is only available for store use, you want to pay special attention to the interest rate that is the equivalent of highway robbery. The interest rate on this supposed rewards card is 22.9%, and this rate is based upon the market-based prime rate, which can change. I would hate to see what this interest rate would fluctuate if it went any higher.

Not Really a Great Credit Card

In reviewing both options of cards for Dillard’s, it is obvious that the rewards are very much lacking. You are essentially getting a coupon to go shopping at Dillard’s, whether it is $10 or 10%. Either way, there is not enough rewards or incentives to merit spending $750-$1500 on items to qualify to get the coupon.

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