In today’s competitive credit card market, it’s important to choose a card that aligns with your spending habits and financial goals. The Sears Credit Card, now known as the Shop Your Way Mastercard, has recently undergone changes that consumers should be aware of. This article will delve into the details of the new card, highlighting its features, benefits, and drawbacks. By the end, you’ll have a better understanding of whether the Shop Your Way Mastercard is the right choice for you.
Also read: Best Credit Cards: How to Choose the Best Credit Card for Your Needs.
What Happened to Sears Credit Card?
Sears filed for bankruptcy in October 2018 and its credit card program was discontinued in May 2019. Sears cardholders were able to continue using their cards until they expired, but new applications were no longer accepted.
In April 2023, Sears launched a new co-branded credit card with Citibank called the Shop Your Way Mastercard. This card is available to new applicants and can be used anywhere Mastercard is accepted. Sears cardholders who still have active accounts were automatically converted to the Shop Your Way Mastercard.
The Shop Your Way Mastercard offers a number of benefits to Sears shoppers, including:
- 5% cash back on Sears purchases
- 2% cash back on gas and groceries
- 1% cash back on all other purchases
- Free shipping on Sears.com orders
- Extended warranty protection on Sears purchases
If you are a Sears shopper, the Shop Your Way Mastercard may be a good option for you. It offers a number of valuable benefits, including cash back on Sears purchases and free shipping on Sears.com orders.
The Transition from Sears Credit Card to Shop Your Way Mastercard
In April 2023, the Sears Credit Card stopped accepting new applications and was replaced by the Shop Your Way Mastercard. Existing cardholders can still use their Sears Credit Card for in-store purchases. The transition to the Shop Your Way Mastercard offers cardholders an opportunity to explore new benefits and rewards.
But I can still login into Sears Credit Card page to manage it?
Yes, you can still log in to your Sears Credit Card account page to manage it, even though Sears Credit Cards have been replaced by New Shop Your Way Mastercards®. All existing Sears credit card accounts were automatically converted to New Shop Your Way Mastercard® accounts.
To log in to your Sears Credit Card account page, go to https://citiretailservices.citibankonline.com/RSnextgen/svc/launch/index.action?siteId=SEARS and enter your username and password.
Once you are logged in, you will be able to view your account balance, transaction history, make payments, and manage your account settings.
If you have any questions about the transition to New Shop Your Way Mastercard®, you can contact Sears customer service at (800) 669-8488.
Shop Your Way Mastercard: Pros and Cons
Pros
- Competitive Rewards for Everyday Purchases:
- The Shop Your Way Mastercard offers generous rewards on gas station purchases, with a 5% back in points rate.
- Eligible restaurant and grocery store purchases earn 3% back in points, up to a combined spending limit of $10,000 per calendar year.
- Bonus Rewards for Partner Stores:
- Shop Your Way is a free membership rewards program that allows cardholders to earn additional cash back at partner stores and restaurants.
- No Annual Fee:
- The Shop Your Way Mastercard does not charge an annual fee, making it an attractive option for those looking to avoid additional costs.
Cons
- Complex Rewards Structure:
- The rewards earned with the Shop Your Way Mastercard are in the form of points, rather than cash back.
- Each point is worth only 0.001 cent, making it necessary to do some calculations to determine the actual value of the rewards.
- Limited Redemption Options:
- While the Shop Your Way Mastercard allows for rewards redemption at Sears, Kmart, and through the Shop Your Way portal, the options are not as flexible as those offered by general-purpose cash-back credit cards.
- High APR and Limited Intro APR Offers:
- The APR for purchases on the Shop Your Way Mastercard can be as high as 25% or more.
- The card’s “special financing” offers on select purchases come with deferred interest, which can result in substantial interest charges if not paid off within the promotional period.
Earning and Redeeming Rewards with the Shop Your Way Mastercard
The Shop Your Way Mastercard offers different rewards rates for various spending categories. Understanding these rates and how to maximize rewards is essential for cardholders.
Earning Rewards
- Gas Station Purchases: Cardholders earn 5% back in points on eligible gas station purchases.
- Restaurant and Grocery Store Purchases: Eligible restaurant and grocery store purchases earn 3% back in points, up to a combined spending limit of $10,000 per calendar year.
- Sears and Kmart Purchases: Cardholders earn 2% back in points on eligible purchases made at Sears and Kmart.
- Other Eligible Purchases: All other eligible purchases earn 1% back in points.
Redeeming Rewards
- Points earned with the Shop Your Way Mastercard can be redeemed at Sears, Kmart, or through the Shop Your Way portal.
- Redeeming points for merchandise and third-party gift cards is also possible through the Shop Your Way portal.
- It’s important to note that Shop Your Way Mastercard points expire after 12 months from the date they are awarded.
Shop Your Way Mastercard vs. General-Purpose Rewards Cards
While the Shop Your Way Mastercard offers rewards on everyday purchases, it’s important to compare it to general-purpose rewards cards to determine which option is more suitable for your needs.
Benefits of General-Purpose Rewards Cards
- Cash Back Redemption: General-purpose rewards cards often offer cash back redemption options, providing greater flexibility in how rewards can be used.
- Higher Point Values: General-purpose rewards cards typically offer higher point values, allowing for more significant rewards accumulation and redemption.
- No Expiration: Unlike Shop Your Way Mastercard points, rewards earned with general-purpose rewards cards usually do not expire.
Is the Shop Your Way Mastercard Right for You?
To determine if the Shop Your Way Mastercard is the right fit for your financial goals, consider the following:
- Frequency of Shopping at Sears and Kmart: If you frequently shop at Sears and Kmart, the card’s 2% back in points on eligible purchases may make it worthwhile.
- Spending Habits: Evaluate your spending habits and determine if the bonus rewards categories align with your regular expenses.
- Redemption Preferences: Consider whether the redemption options offered by the Shop Your Way Mastercard match your preferences and needs.
- Interest Rates and Intro APR Offers: Assess your ability to pay off balances in full and whether the card’s interest rates and promotional offers align with your financial situation.
What are the Best Competitors of Shop Your Way Mastercard?
The best competitors of the Shop Your Way Mastercard depend on your individual needs and spending habits. However, some popular and highly-rated alternatives include:
- Chase Freedom Unlimited® Card: This card offers 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% cash back on dining and drugstores, and 1.5% cash back on all other purchases. There is no annual fee and you can redeem your cash back for statement credits, travel through Chase Ultimate Rewards®, or gift cards.
- Discover it® Cash Back: This card offers 5% cash back on rotating quarterly categories (up to $1,500 in quarterly purchases), 1% cash back on all other purchases, and a dollar-for-dollar match on all the cash back you earn at the end of your first year. There is no annual fee and you can redeem your cash back for statement credits, gift cards, or travel.
- Citi® Double Cash Card: This card offers 2% cash back on all purchases: 1% when you buy and 1% as you pay. There is no annual fee and you can redeem your cash back for statement credits or checks.
- Blue Cash Everyday® Card from American Express: This card offers 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 2% cash back at U.S. select gas stations & at department stores (on up to $6,000 per year in combined purchases, then 1%), and 1% cash back on all other purchases. There is no annual fee and you can redeem your cash back for statement credits, statement savings, gift cards, or travel.
- Capital One Venture Rewards Credit Card: This card offers 2 miles per dollar on all purchases. Miles can be redeemed for travel, statement credits, gift cards, and more. There is no annual fee and miles don’t expire.
These cards all offer a variety of benefits, including cash back, travel rewards, and no annual fees. They are also all accepted at a wide range of merchants, including many of the same merchants where the Shop Your Way Mastercard is accepted.
If you are looking for a credit card that can be used at a variety of merchants and offers more rewards, one of the alternatives listed above may be a better choice for you than the Shop Your Way Mastercard.
It is important to note that this is just a general overview of some of the best competitors of the Shop Your Way Mastercard. There are many other great credit cards available, so be sure to do your research and compare different cards to find the one that is right for you.
| Feature | Chase Freedom Unlimited® Card | Discover it® Cash Back | Citi® Double Cash Card | Blue Cash Everyday® Card from American Express | Capital One Venture Rewards Credit Card | Shop Your Way Mastercard |
|---|---|---|---|---|---|---|
| Rewards | 1.5% cash back on all purchases | 5% cash back on rotating quarterly categories, up to $1,500 in spending per quarter, then 1% cash back on all other purchases | 2% cash back on all purchases | 3% cash back at U.S. supermarkets (up to $6,000 per year), then 1% cash back on all other purchases | 2 miles per dollar on all purchases | 5% cash back on Kmart and Sears purchases, 3% cash back on dining and gas, 1% cash back on all other purchases |
| Annual fee | $0 | $0 | $0 | $0 | $95 | $0 |
| Welcome bonus | $200 cash back after you spend $500 on purchases in your first 3 months from account opening | Cashback Match™: All the cash back you’ve earned at the end of your first year, dollar for dollar, automatically matched, up to $100 | None | None | 60,000 bonus miles after you spend $3,000 on purchases in the first 3 months from account opening | None |
| Sign-up bonus | $200 cash back after you spend $500 on purchases in your first 3 months from account opening | Cashback Match™: All the cash back you’ve earned at the end of your first year, dollar for dollar, automatically matched, up to $100 | None | None | 60,000 bonus miles after you spend $3,000 on purchases in the first 3 months from account opening | None |
| Foreign transaction fees | 3% | 0% | 3% | 2.75% | 3% | 0% |
| Balance transfer APR | 19.99% Variable | 19.99% Variable | 18.49% Variable | 19.99% Variable | 26.49% Variable | 19.69% Variable |
| Purchase APR | 19.99% Variable | 19.99% Variable | 18.49% Variable | 19.99% Variable | 26.49% Variable | 19.69% Variable |
Additional benefits:
Chase Freedom Unlimited® Card:
- Earn 5% cash back on travel purchased through Chase Ultimate Rewards®
- Earn 3% cash back on dining at restaurants and drugstores
Discover it® Cash Back:
- Discover it® Cash Back Match™: All the cash back you’ve earned at the end of your first year, dollar for dollar, automatically matched, up to $100
- No annual fee for the first year, then $0 annual fee if you keep your account open
Citi® Double Cash Card:
- Earn 2% cash back on all purchases – 1% when you buy and 1% as you pay
Blue Cash Everyday® Card from American Express:
- Earn 3% cash back on U.S. supermarket purchases (up to $6,000 per year), then 1% cash back on all other purchases
- No annual fee
Capital One Venture Rewards Credit Card:
- 2 miles per dollar on all purchases
- Miles can be redeemed for travel, cash back, or gift cards
- No foreign transaction fees
Shop Your Way Mastercard:
- 5% cash back on Kmart and Sears purchases
- 3% cash back on dining and gas
- 1% cash back on all other purchases
- No foreign transaction fees
Please note that this is just a high-level comparison of the features of these credit cards. It is important to review the full terms and conditions of each card before applying to make sure it is the right fit for your needs.
Conclusion
The transition from the Sears Credit Card to the Shop Your Way Mastercard brings new rewards and benefits to cardholders. While the card offers competitive rewards on everyday purchases, its complex rewards structure and limited redemption options may not be suitable for everyone. By comparing the Shop Your Way Mastercard to general-purpose rewards cards and considering your spending habits, redemption preferences, and financial goals, you can make an informed decision about whether this card is the right fit for you. Remember to review the terms and conditions of the card before applying to ensure it aligns with your financial needs and goals.
