Review: Barneys New York Credit Card

barneys-credit-cardBarneys New York, in partnership with Comenity Capital Bank, offers a credit card that allows you to earn reward points toward a yearly gift card based on your spending. Is it worth it? Only if you’re a very big spender. Our complete overview / review of the Barneys credit card is below:

The first thing to know about the Barneys New York credit card is that it’s only accepted at Barneys, nowhere else. We are generally not fans of cards with such limited acceptance, unless they offer some very compelling reason to have them, such as a great rewards program. Does the Barneys card have a compelling rewards program? It depends on how deep your pockets are.

Let’s look at the Barney credit card reward program in order to understand its benefits and drawbacks…

Each year, Barneys sends its credit card holders a Barneys gift card, with the amount of that gift card based upon your spending with the Barneys credit card:

  • If you spend less than $2000 with the card, you actually don’t get a gift card at all! Doh!
  • If you spend $2000 – $4999, you get a gift card worth 1% of your purchases.
  • If you spend $5000 – $9999, you get a gift card worth 2% of your purchases
  • If you spend $10,000 – $24,999, the gift card is 3% of purchases.
  • If you spend $25,000 – $49,999, the gift card is 4% of purchases.
  • At $50,000 or more, you get a card worth 5% of your purchases.

Now, we all know Barneys does not sell stuff at cheap prices. So, if you are shopping there with any regularity, you’re spending a good amount of money. Nevertheless, you’re not necessarily spending $5000+ there. And that’s the key. If you are spending less than $5000 per year at Barneys, there is no reason to get the Barneys credit card. You could just as easily use a standard credit card and get a cash back reward of 1% or even more. (And if you spend less than $2000 at Barneys, you get no reward, so only a dummy would go for that.)

However, if you are a big Barneys shopper, spending over $5000 per year, the card could be pretty great. Getting a gift card worth 2%, 3%, 4%, or 5% of your yearly purchases is better than the reward you’ll get from many other credit cards — and if you’re spending enough to hit those tiers, then you obviously would value the gift card you receive each year.

The Barneys New York credit card does offer some other “nice-to-have” perks, though none of them are so exciting that they should sway you much. They include:

  • Free shipping and returns on online purchases.
  • Occasional discounts and special in-store events exclusively for cardholders
  • $50 in free alterations on purchases of $500 or more.
  • Free services at select stores including valet service, beauty treatments, and wine at Barneys restaurants.

Finally, you should know that the Barneys credit card has a lousy interest rate of 25.24!!! If you EVER carry a balance on your credit cards, this rate should shut down any thought of getting the card. It is almost a given that the interest you pay will be more than you receive in rewards. So, if you tend to carry a balance, forget this, move on, nothing to see here…

In summary, if you are a BIG Barneys spender and you always pay off your credit cards in full, the Barneys credit card is a good deal. But if you are only an occasional Barneys customer and/or you carry a balance on your credit cards, look elsewhere for your credit needs.

You can apply for a Barneys New York credit card online via this application.