Are you curious about which bank is behind the Kohl’s credit card? Bankprofits.net provides you with an analysis of the issuing bank, along with insights into the card’s benefits and financial implications, helping you to make informed decisions about your credit options and improve your financial strategy. This article dives deep into the issuer, rewards program, and overall profitability for both the customer and the bank, while shedding light on credit card profitability and retail partnerships.
1. Who Issues the Kohl’s Credit Card?
Capital One, N.A. issues the Kohl’s Credit Card. This card operates under a license from Visa Inc., making it a co-branded credit card that can be used at Kohl’s and anywhere Visa is accepted.
To elaborate, Capital One’s backing means that the Kohl’s card benefits from Capital One’s financial infrastructure and customer service. This partnership allows Kohl’s to offer a credit card with broader usability than a store-specific card, enhancing its appeal to customers. Capital One, being a major player in the credit card industry, brings reliability and a robust platform to support the Kohl’s card program.
2. What are the Benefits of the Kohl’s Credit Card?
The Kohl’s Credit Card provides benefits such as earning rewards on purchases, exclusive discounts, and special financing offers. Kohl’s Rewards Visa cardholders earn:
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- 5% at Kohl’s stores or Kohls.com (excluding gift cards).
- 3% on gasoline purchases at gas stations.
- 2% at grocery stores.
- 1% on purchases everywhere else Visa is accepted.
These rewards are designed to encourage frequent shopping at Kohl’s and provide value on everyday purchases.
Table 1: Kohl’s Rewards Visa Card Benefits
| Benefit | Description |
|---|---|
| Rewards on Kohl’s Purchases | Earn 7.5% rewards at Kohl’s stores and online, excluding gift cards. |
| Rewards on Gas | Earn 3% rewards on gasoline purchases at gas stations. |
| Rewards on Groceries | Earn 2% rewards at grocery stores. |
| General Purchases | Earn 1% rewards on all other purchases where Visa is accepted. |
| Exclusive Discounts | Cardholders often receive exclusive discounts and promotional offers. |
| Special Financing | Opportunities for special financing on purchases, making it easier to manage larger expenses. |
| MVC Status | Spending $600 within a calendar year grants MVC status, providing monthly free shipping opportunities. |
| Kohl’s Cash | Cardholders earn Kohl’s Cash, which can be used like store credit during specific promotional periods. |
| Birthday Offer | Special birthday offers for cardholders, adding a personalized touch to the rewards program. |
| Early Access Sales | Cardholders may receive early access to sales events, allowing them to shop before the general public. |
| No Annual Fee | The Kohl’s Credit Card typically does not have an annual fee, making it an affordable option for frequent Kohl’s shoppers. |
These benefits enhance the shopping experience and provide significant savings for loyal Kohl’s customers.
3. How Does the Kohl’s Rewards Program Work?
The Kohl’s Rewards program allows cardholders to accumulate points on purchases, which are then converted into Kohl’s Cash. This Kohl’s Cash can be used to purchase items at Kohl’s stores or online, providing a direct incentive to shop at Kohl’s.
The structure encourages repeat business and customer loyalty, as shoppers are motivated to use their Kohl’s Cash on future purchases. Kohl’s Rewards Visa cardholders will earn Kohl’s rewards at the following rates of the transaction subtotal for qualifying purchases made with their Kohl’s Rewards Visa linked to their Kohl’s Rewards Account:
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- 5% at Kohl’s stores or Kohls.com, excluding gift cards;
- 3% on gasoline purchases made at merchants whose primary line of business is the sale of automotive gasoline that can be purchased inside the service station or at the automated fuel pump;
- 2% at grocery stores (grocery purchases made at discount stores or superstores, including warehouse clubs (e.g., Costco or Walmart) and convenience stores will earn 1%);
- 1% on purchases everywhere else Visa is accepted
Kohl’s uses merchant category codes to determine whether your purchase is within a certain category that earns additional Kohl’s rewards. Merchants determine the merchant category code used to identify transactions, which could impact the amount of Kohl’s rewards you earn. Kohl’s is not responsible for merchant category codes used by merchants.
Qualifying purchases are calculated after all coupons and/or discounts are applied, before shipping, fees or tax is imposed and do not include the purchase of gift cards at Kohl’s. If merchandise from a qualifying purchase that earns Kohl’s rewards is returned or price adjusted, the value of the earned Kohl’s rewards and/or Kohl’s Cash® will be reduced to reflect any unearned value. Cash advances, balance transfers, and account access checks are not considered purchases and will not earn Kohl’s rewards.
The Kohl’s Rewards® program is provided by Kohl’s.
For Kohl’s Rewards® program details and full terms, please visit Kohls.com/KohlsRewardsTerms.
4. What is MVC Status and How Do You Achieve It?
MVC (Most Valued Customer) status is achieved by spending $600 on purchases at Kohl’s stores or Kohls.com within a calendar year using the Kohl’s Card. Once achieved, MVC status is effective through December 31 of the following calendar year, providing benefits like monthly free shipping opportunities.
MVC status enhances the value proposition of the Kohl’s card, rewarding frequent shoppers with additional perks. This encourages higher spending and continued loyalty to Kohl’s. Kohl’s cardholders achieve MVC (Most Valued Customer) status after spending $600 on purchases at Kohl’s stores or Kohls.com within a calendar year using their Kohl’s Card. Once MVC status is achieved, it is effective through December 31 of the following calendar year. MVC status provides Kohl’s cardholders with monthly free shipping opportunities.
5. How Does the Kohl’s Credit Card Affect Kohl’s Profitability?
The Kohl’s Credit Card enhances Kohl’s profitability by fostering customer loyalty and increasing sales volume. Cardholders are more likely to shop at Kohl’s due to the rewards program and exclusive discounts, leading to higher revenue.
Additionally, the data collected from cardholder transactions provides Kohl’s with valuable insights into consumer behavior, enabling targeted marketing strategies and improved inventory management. This partnership allows Kohl’s to share in the profits generated from interest and fees, further boosting their financial performance.
6. What are the Interest Rates and Fees Associated with the Kohl’s Credit Card?
The Kohl’s Credit Card typically has a higher interest rate compared to general-purpose credit cards. Additionally, fees such as late payment fees and over-the-limit fees can apply. It’s important for cardholders to review the terms and conditions carefully to understand the costs associated with the card.
Managing the card responsibly, by paying balances on time and avoiding unnecessary fees, is crucial to maximizing its benefits and minimizing financial strain.
Table 2: Potential Fees and Interest Rates for the Kohl’s Credit Card
| Fee/Rate | Description |
|---|---|
| Annual Fee | Typically, there is no annual fee for the Kohl’s Credit Card, making it an accessible option for regular Kohl’s shoppers. |
| Purchase APR | The Purchase Annual Percentage Rate (APR) can be relatively high compared to general-purpose credit cards, often ranging from 20% to 30%, depending on creditworthiness. |
| Late Payment Fee | A fee charged when a cardholder fails to make at least the minimum payment by the due date. This fee can vary but is often around $25 to $35. |
| Over-the-Limit Fee | Although less common now, some cards charge a fee if you exceed your credit limit. It’s important to stay within your limit to avoid this fee. |
| Cash Advance Fee | A fee charged for using the card to obtain cash from an ATM or bank. This fee is usually a percentage of the cash advance amount. |
| Cash Advance APR | The APR for cash advances is typically higher than the purchase APR, making cash advances an expensive way to borrow money. |
| Balance Transfer Fee | If the card allows balance transfers, a fee may be charged as a percentage of the amount transferred. |
| Foreign Transaction Fee | A fee charged for transactions made in a foreign currency. This fee is typically a percentage of the transaction amount. It’s important to check if the Kohl’s Credit Card charges this fee if you plan to use it internationally. |
| Returned Payment Fee | A fee charged if a payment is returned due to insufficient funds. |
Understanding these fees and rates can help cardholders use the Kohl’s Credit Card responsibly and avoid unnecessary costs.
7. How Does Capital One Benefit from Issuing the Kohl’s Credit Card?
Capital One benefits from issuing the Kohl’s Credit Card through interest income, transaction fees, and increased customer acquisition. The partnership with Kohl’s allows Capital One to tap into Kohl’s customer base, expanding its market reach.
The co-branded card enhances customer loyalty for both Capital One and Kohl’s, creating a mutually beneficial relationship. Capital One also gains valuable data insights into consumer spending habits, which can be used to refine its marketing strategies and product offerings.
8. What Credit Score is Needed to Get a Kohl’s Credit Card?
A fair to good credit score is typically needed to get a Kohl’s Credit Card. This generally means a credit score of 620 or higher. However, approval depends on various factors, including credit history, income, and overall creditworthiness.
Applicants with higher credit scores are more likely to be approved and may receive more favorable terms, such as lower interest rates.
9. How Does the Kohl’s Credit Card Compare to Other Retail Credit Cards?
The Kohl’s Credit Card is similar to other retail credit cards in that it offers rewards and discounts specifically for shopping at Kohl’s. However, it also provides the added benefit of being a Visa card, allowing it to be used anywhere Visa is accepted.
Compared to store-specific cards, the Kohl’s card offers greater flexibility and broader usability, making it a more attractive option for many consumers.
Table 3: Comparison of Kohl’s Credit Card with Other Retail Credit Cards
| Feature | Kohl’s Credit Card | Other Retail Credit Cards |
|---|---|---|
| Issuer | Capital One, N.A. | Varies (e.g., Synchrony Bank, Comenity Bank) |
| Network | Visa | Store-specific or Visa/Mastercard |
| Rewards Program | Kohl’s Rewards: 7.5% at Kohl’s, 3% on gas, 2% at grocery stores, 1% everywhere else Visa is accepted. | Varies; typically rewards focused on purchases within the specific store. |
| MVC Status | Spending $600 annually earns MVC status, providing monthly free shipping opportunities. | Varies; some cards offer similar tiered loyalty programs based on spending. |
| Interest Rates | Higher interest rates, typical of retail cards. | Generally higher interest rates compared to general-purpose credit cards. |
| Fees | No annual fee; other fees (late payment, etc.) apply. | No annual fee is common; other fees vary. |
| Acceptance | Accepted anywhere Visa is accepted, in addition to Kohl’s. | Store-specific cards are limited to that store; co-branded cards (Visa/Mastercard) accepted more widely. |
| Credit Score Requirement | Fair to good credit score (620+) | Varies; some store cards may be easier to get with a lower credit score. |
| Additional Perks | Exclusive discounts, special financing offers, birthday offers, early access to sales. | May include similar exclusive discounts, promotional financing, and special offers. |
| Customer Loyalty | Encourages repeat business and customer loyalty through Kohl’s Cash and MVC status. | Designed to drive customer loyalty and repeat purchases at the specific retailer. |
| Data Insights | Provides Kohl’s with valuable consumer spending data. | Offers retailers insights into customer purchasing habits. |
| Profitability | Enhances Kohl’s profitability through increased sales and shared revenue from interest and fees. | Boosts retailer’s financial performance through increased sales and customer retention. |
| Overall Value | Good value for frequent Kohl’s shoppers due to rewards and exclusive offers. | Value depends on shopping habits at the specific retailer; co-branded cards offer more versatility. |
This comparison provides a clear overview of how the Kohl’s Credit Card stacks up against other retail credit cards, highlighting its strengths and potential drawbacks.
10. What Happens If You Don’t Pay Your Kohl’s Credit Card Bill?
If you don’t pay your Kohl’s Credit Card bill, you may incur late payment fees, and your credit score may be negatively affected. Continued failure to pay can lead to more severe consequences, such as increased interest rates, account closure, and collection efforts.
Maintaining timely payments is essential to avoid these negative impacts and preserve your creditworthiness.
11. Can You Use Your Kohl’s Credit Card at Other Stores?
Yes, because the Kohl’s Credit Card is a Visa card, it can be used at any store that accepts Visa. This provides greater flexibility compared to store-specific credit cards that can only be used at the issuing retailer.
The broad acceptance of the Kohl’s Visa card enhances its value proposition, making it a convenient payment option for a wide range of purchases.
12. How to Apply for the Kohl’s Credit Card?
Applying for the Kohl’s Credit Card is a straightforward process that can be completed online or in-store. To apply, you typically need to provide personal information such as your name, address, date of birth, Social Security number, and income details. Here’s a step-by-step guide on how to apply:
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Online Application:
- Visit the Kohl’s website: Go to Kohls.com and navigate to the credit card section.
- Find the application form: Look for a link or button that says Apply Now or Kohl’s Credit Card Application.
- Fill out the application: Provide all required information accurately. This includes your name, address, date of birth, Social Security number, income, and contact information.
- Review and submit: Double-check all the information you’ve entered, then submit the application.
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In-Store Application:
- Visit a Kohl’s store: Go to any Kohl’s retail location.
- Ask for an application: Speak with a store associate and request a Kohl’s Credit Card application form.
- Fill out the application: Complete the form with the necessary personal and financial information.
- Submit the application: Return the completed form to the store associate, who will submit it for processing.
Information Needed for the Application:
- Personal Information:
- Full Name
- Address
- Date of Birth
- Social Security Number
- Contact Information (phone number and email address)
- Financial Information:
- Annual Income
- Employment Status
- Monthly Housing Payment (mortgage or rent)
Tips for a Successful Application:
- Check Your Credit Score: Before applying, check your credit score to ensure it meets the fair to good range (620+).
- Accuracy: Ensure all information provided is accurate and matches your official documents.
- Income Verification: Be prepared to provide proof of income if requested.
- Read the Terms and Conditions: Understand the interest rates, fees, and other terms associated with the card.
Review Process:
- Instant Approval: In some cases, you may receive an instant decision.
- Further Review: If not instantly approved, your application may be subject to further review, which can take a few days to a few weeks.
- Notification: You will be notified of the decision via mail or email.
By following these steps, you can easily apply for the Kohl’s Credit Card and potentially start enjoying its benefits.
13. Can the Credit Limit on a Kohl’s Credit Card Be Increased?
Yes, the credit limit on a Kohl’s Credit Card can be increased. Cardholders can request a credit limit increase through Capital One’s online portal or by contacting customer service.
Approval for a credit limit increase depends on factors such as payment history, credit score, and income. Regularly using the card responsibly and demonstrating consistent on-time payments can increase the likelihood of approval.
14. How Does the Kohl’s Credit Card Impact Your Credit Score?
The Kohl’s Credit Card can impact your credit score in several ways. Responsible use, such as making timely payments and keeping your credit utilization low, can positively impact your credit score.
Conversely, late payments, high credit utilization, and other negative behaviors can harm your credit score. It’s important to manage the card responsibly to maintain a healthy credit profile.
15. What Security Features Does the Kohl’s Credit Card Offer?
The Kohl’s Credit Card offers security features such as fraud monitoring, zero liability protection, and the ability to set up account alerts. These features help protect cardholders from unauthorized transactions and fraud.
Capital One’s robust security measures provide peace of mind and ensure that cardholders are protected against potential financial losses.
16. How to Cancel a Kohl’s Credit Card?
To cancel a Kohl’s Credit Card, you need to contact Capital One customer service. You can do this by calling the number on the back of your card or through the online portal.
Before canceling, it’s a good idea to pay off your balance and redeem any outstanding rewards. Canceling a credit card can impact your credit score, so it’s important to consider the implications before proceeding.
17. What Are the Alternatives to the Kohl’s Credit Card?
Alternatives to the Kohl’s Credit Card include other retail credit cards, general-purpose rewards credit cards, and cash-back credit cards. These alternatives may offer different rewards structures, interest rates, and fees, so it’s important to compare options to find the best fit for your needs.
Consider your spending habits and financial goals when evaluating alternatives to the Kohl’s Credit Card.
Table 4: Alternatives to the Kohl’s Credit Card
| Alternative Credit Card | Key Features | Benefits | Drawbacks |
|---|---|---|---|
| Amazon Prime Rewards Visa Signature Card | 5% back at Amazon and Whole Foods, 2% back at restaurants and gas stations, 1% back on all other purchases. No annual fee for Prime members. | High rewards rate for Amazon and Whole Foods shoppers, plus additional rewards on dining and gas. No annual fee for Amazon Prime members. | Requires an Amazon Prime membership to maximize rewards. The 5% back is only valuable if you frequently shop at Amazon and Whole Foods. |
| Chase Freedom Unlimited | 1.5% cash back on all purchases. 5% back on travel purchased through Chase Ultimate Rewards, 3% back on dining and drugstores. | Simple rewards structure with a flat rate on all purchases and bonus rewards on travel and dining. No annual fee. | The 1.5% cash back is decent, but not as high as some other cards. To maximize rewards, you need to use Chase Ultimate Rewards for travel. |
| Citi Double Cash Card | 2% cash back on all purchases (1% when you buy, 1% when you pay). | Straightforward rewards structure with a high flat rate on all purchases. No spending categories to track. | Requires paying your bill on time to earn the full 2% cash back. No additional perks or benefits beyond the cash back. |
| Discover it Cash Back | 5% cash back in rotating categories each quarter (up to a quarterly maximum), 1% back on all other purchases. Discover will automatically match all the cash back you’ve earned at the end of your first year. | High rewards rate in rotating categories, which can be lucrative if you align your spending. First-year cash back match is a great bonus. | Requires activating the rotating categories each quarter. The 5% cash back is limited to a quarterly maximum. |
| Target RedCard | 5% discount on all Target purchases (in-store and online). Free shipping on most items at Target.com. | Great for frequent Target shoppers, offering a guaranteed discount on all purchases. Free shipping enhances the online shopping experience. | Limited to purchases at Target. The discount only applies if you shop at Target regularly. |
| Blue Cash Preferred Card from American Express | 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and transit, 1% cash back on all other purchases. | High rewards rate at U.S. supermarkets and on streaming services. Additional rewards on gas and transit. | Annual fee. The high rewards rates are limited to specific categories and spending caps. |
| Store-Specific Credit Cards | Varies depending on the store; typically offers rewards and discounts specific to that retailer. | Encourages loyalty and repeat purchases at the specific store. Offers exclusive discounts and promotional financing. | Rewards and benefits are limited to purchases at the specific store. May have higher interest rates compared to general-purpose cards. |
18. Are There Any Lawsuits or Legal Issues Involving the Kohl’s Credit Card?
It’s always a good idea to research any potential lawsuits or legal issues involving a credit card before applying. A quick online search can reveal any ongoing or past legal actions related to the Kohl’s Credit Card or its issuer, Capital One.
Staying informed about potential legal issues can help you make a more informed decision about whether to apply for the card.
19. How Does the Kohl’s Credit Card Integrate with Mobile Wallets?
The Kohl’s Credit Card can be integrated with mobile wallets such as Apple Pay and Google Pay, allowing for contactless payments. This provides a convenient and secure way to make purchases both in-store and online.
Mobile wallet integration enhances the usability of the Kohl’s card, making it a modern and convenient payment option.
20. What Customer Service Options Are Available for Kohl’s Credit Card Holders?
Kohl’s Credit Card holders have access to a variety of customer service options, including phone support, online chat, and email support. Capital One provides robust customer service resources to address cardholder inquiries and resolve issues.
Accessing these customer service options can help cardholders manage their accounts effectively and address any concerns that may arise.
Navigating the world of credit cards can be complex, but with the right information, you can make informed decisions that benefit your financial health. At bankprofits.net, we provide in-depth analyses and expert insights to help you understand the intricacies of the banking industry.
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FAQ: Kohl’s Credit Card
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Who is the issuing bank for the Kohl’s Credit Card?
Capital One, N.A. issues the Kohl’s Credit Card, operating under a license from Visa Inc.
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What credit score is needed to get a Kohl’s Credit Card?
A fair to good credit score, generally 620 or higher, is typically needed for approval.
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Can I use my Kohl’s Credit Card anywhere?
Yes, as the Kohl’s Credit Card is a Visa card, it can be used anywhere Visa is accepted.
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What are the main benefits of the Kohl’s Credit Card?
Benefits include earning rewards on Kohl’s purchases, exclusive discounts, special financing offers, and the chance to achieve MVC status.
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How do I achieve MVC status with the Kohl’s Credit Card?
Spend $600 on purchases at Kohl’s stores or Kohls.com within a calendar year using your Kohl’s Card to achieve MVC status.
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What happens if I miss a payment on my Kohl’s Credit Card?
Missing a payment can result in late payment fees and a negative impact on your credit score.
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Is there an annual fee for the Kohl’s Credit Card?
The Kohl’s Credit Card typically does not have an annual fee.
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How can I apply for the Kohl’s Credit Card?
You can apply online at Kohls.com or in person at any Kohl’s store.
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Can I increase my credit limit on the Kohl’s Credit Card?
Yes, you can request a credit limit increase through Capital One’s online portal or by contacting customer service.
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How do I cancel my Kohl’s Credit Card?
Contact Capital One customer service via phone or through the online portal to cancel your card.
