A regular cash-back credit card would likely save you more money than Carter’s store card. Plus, it remains valuable even when your days of shopping for your little one are over.
The Carter’s credit card operates similarly to other co-branded store cards. It allows you to earn rewards at specific stores, and you can only use these rewards to make more purchases at those stores. When you purchase Carter’s, you often receive a coupon at the register that you can apply to your order.
For new parents who have just stocked up on baby clothes and are facing the high costs of raising a child, a discount can be very tempting. However, behind that one-time coupon lies a rather ordinary credit card that’s primarily beneficial for buying items at Carter’s. Kids tend to outgrow Carter’s clothing fairly quickly.
Here are five important things to know about Carter’s credit card, which is issued by Comenity Capital Bank.
This card is limited to use at specific stores.
Carter’s credit card is what’s known as a closed-loop card. This means it can only be used for making purchases at specific stores, including Carter’s, and its affiliated brands like OshKosh, Skip Hop, and Little Planet. While these stores have a presence in all 50 states and offer online shopping, their reach is limited compared to the broader spectrum of household shopping needs.
If you find this limitation too constricting, you might want to consider open-loop cards like the Wells Fargo Active Cash® Card, which provides a 2% cash back on all purchases, or the Bank of America® Customized Cash Rewards credit card. The Customized Cash Rewards card has a somewhat complex rewards structure, including a 3% cash back category of your choice, up to a quarterly spending limit of $2,500 in combined purchases across the 3% category, grocery stores, and wholesale clubs. Notably, one of the 3% categories is online shopping, offering more flexibility for your spending needs.
The Sign-Up Bonus Offers Modest Rewards
While many credit cards typically offer just one sign-up bonus, Carter’s credit card is somewhat unique in providing two. However, the value of these bonuses is quite modest. New cardholders receive a 30% discount on their initial purchase made using the Carter’s credit card, along with an additional 20% coupon that arrives with the credit card by mail. It’s worth noting that neither of these coupons can be stacked with other ongoing promotions or discounts.
Admittedly, there is no requirement to meet a minimum spending threshold to enjoy these welcome offers with Carter’s credit card, unlike many rewards credit cards. Nevertheless, these one-time coupons don’t offer significant value. For instance, if you spent $200 on your first Carter’s shopping spree, a 30% discount coupon would save you $60. In contrast, sign-up bonuses on other credit cards can often exceed $200 or more in value.
Earnings in the Lower Percentile: What to Expect
The Carter’s credit card lets you earn 2 points for every $1 you spend, with occasional opportunities for a slightly better rate of 3 points per $1 on special triple points days. These points can be accumulated through in-store purchases at Carter’s and OshKosh, as well as online purchases made at carters.com, oshkosh.com, skiphop.com, and carters.com/littleplanet when shipped within the U.S.
While a reward rate of 2x to 3x is reasonable, it may not be considered particularly remarkable. For instance, top-tier cash-back credit cards often offer rates as high as 6%, and their rewards typically don’t expire, unlike the points earned with Carter’s card, which do have an expiration date.
For a more versatile option, you might want to consider the Blue Cash Everyday® Card from American Express. This card lets you earn 3% cash back on U.S. online retail purchases, up to an annual spending limit of $6,000 (after which the rate drops to 1%). This broad rewards category makes the Blue Cash card a more adaptable choice compared to the Carter’s credit card.
Modest Rewards: Not So Cute and Daint
Much like how a baby quickly grows into a toddler, the rewards you earn from Carter’s credit card can disappear in the blink of an eye if you’re not vigilant.
Cardholders are rewarded with a $10 coupon for every 150 points amassed over a six-month period, which translates to roughly 0.07 cents per point. Unfortunately, this value pales in comparison to the best credit cards, which offer points worth at least 1 cent, if not more.
To add to the challenge, these reward coupons have a short shelf life, expiring just 45 days from the date of issue. The points themselves also come with a clock ticking down, expiring six months after you earn them.
Once you’ve reached the 150-point threshold, you can expect to receive your rewards via email within two weeks. These rewards can be redeemed for in-store purchases at Carter’s and OshKosh, as well as online at carters.com, oshkosh.com, and skiphop.com.
Additional Perks for Cardholders: More Than Just a Card
Cardholders with the Carter’s credit card enjoy some added benefits. When you use the card to pay for your purchases, you’ll receive complimentary standard U.S. shipping. This means that orders placed on carters.com, oshkosh.com, skiphop.com, and carters.com/littleplanet will be eligible for free shipping. Additionally, as a cardholder, you’ll receive a special anniversary gift each year, completely free of charge.