What Is Comenity Bank, and Are Its Credit Cards Right for You? - NerdWallet (2024)

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Comenity Bank is a financial services company offering credit cards, personal loans, "buy now, pay later" plans, high-yield savings accounts and certificates of deposit. The bank is a subsidiary of Bread Financial, and you will see the Comenity name on credit cards issued by the bank.

The Comenity/Bread Financial portfolio of credit cards is massive, including more than 170 co-branded cards for retailers and sports teams. But unlike many general rewards credit cards, Comenity-issued co-branded cards tend to come saddled with caveats, including poor reward values, reward expiration dates, clunky or inflexible redemption options, and other roadblocks.

The issuer does have its own general rewards cards, which are more competitive: the Bread Cashback American Express Credit Card and the Bread Rewards American Express Credit Card. (The latter card, as of this writing, is an invite-only product.)

Here are a few examples of Comenity/Bread credit cards, at a glance.

» MORE: NerdWallet's best store credit cards

For simple cash back: the Bread Cashback American Express Credit Card

The Bread Cashback American Express Credit Card earns 2% cash back on all purchases. The annual fee is $0, and there are no foreign transaction fees. Terms apply. You can redeem cash back as a statement credit or direct deposit into a checking or savings account. Redeem as little as 1 cent worth of rewards.

The card lacks a sign-up bonus and 0% APR promotion, unlike some other 2% cash-back cards. But it includes a few American Express perks, such as 20% off of your bill or a free appetizer at participating restaurants. Terms apply.

» MORE: Credit cards that earn 2% cash back on all purchases

For the beauty buff: the Ulta credit card

Comenity issues two Ulta credit cards, which allow you to earn rewards on top of what you’d earn as a member of the Ultamate Rewards loyalty program:

  • The Ultamate Rewards Mastercard can be used wherever Mastercard is accepted. It earns 2 points per $1 spent at Ulta Beauty and 1 point for $3 spent anywhere else. Plus, as of this writing, get 500 bonus points when you spend $500 outside of Ulta Beauty in the first 90 days.

  • The Ultamate Rewards credit card can only be used at Ulta Beauty. It earns 2 points per $1 spent there.

As an Ultamate Rewards program member, the more you spend at Ulta in a year, the more points and perks you get. Note that unless you attain Platinum status with Ulta Rewards (which requires spending $500 per year with the retailer), your points will expire at the end of the quarter one year after you earned them.

For the home decorator: the IKEA Visa® Credit Card

The cost of filling your Kallax shelves with Lustigkurre baskets can add up fast, but the $0-annual-fee IKEA Visa® Credit Card earns:

  • 5% back in rewards on Ikea purchases, including Traemand kitchen installation and TaskRabbit assembly services.

  • 3% back in rewards on dining, grocery stores and utility purchases.

  • 1% back in rewards on all other purchases.

As of this writing, new cardholders can earn $25 Ikea Reward Dollars after making $500 in purchases outside of Ikea and TaskRabbit within the first 90 days.

Reward Dollars can be redeemed in $15 increments for Reward Certificates. Reward Dollars expire 36 months after you earn them, while Reward Certificates expire in just 90 days.

» MORE: NerdWallet’s best credit cards for home improvement and new homeowners

For the pet parent: Petco Pay credit card

Comenity issues two Petco credit cards:

  • The Petco Pay Credit Card, which earns 2 Vital Care points per $1 spent at Petco or on petco.com.

  • The Petco Pay Mastercard Credit Card, which can be used outside of Petco. It earns 2 Vital Care points per $1 spent at Petco or on petco.com, 2 points per $3 spent at grocery stores, and 1 point per $3 spent everywhere else. As of this writing, you can also earn $25 worth of points if you spend $500 outside of Petco in the first 90 days.

Both cards have $0 annual fees. When you accumulate 167 points, you’ll earn $5 in Vital Care Rewards, which you can redeem toward a Petco purchase. Rewards expire a year after you earn them.

» MORE: NerdWallet’s best credit cards for pet owners

For the human parent: The Children’s Place credit card

The My Place Rewards Credit Card is the co-branded card not just for The Children’s Place, but also for Gymboree, Sugar & Jade, and PJ Place. Together, those brands outfit kids from babies to tweens, in addition to selling pajamas for all ages.

The card earns 2 points per $1 spent at any of these brands, and for every 100 you accrue, you'll snag a $5 reward certificate. Expressed another way, each time you spend $50 at Children’s Place or related brands, you get $5 in rewards.

New cardholders also may be eligible for one-time discounts. Points expire a year after they’re earned.

» MORE: NerdWallet’s best credit cards for new parents

Examples of other Comenity/Bread-issued store cards

  • AAA credit cards.

  • Academy credit card.

  • Ann Taylor credit card.

  • Big Lots credit card.

  • Big O Tires credit card.

  • Burlington credit card.

  • Eddie Bauer credit card.

  • Express credit card.

  • Forever 21 credit card.

  • GameStop credit card.

  • Good Sam credit card.

  • Houzz credit card.

  • Lands' End credit card.

  • Lane Bryant credit card.

  • Maurices credit card.

  • NFL Extra Points Visa® Credit Card.

  • PlayStation credit card.

  • Sephora credit card.

  • Sony credit card.

  • Torrid credit card.

  • Victoria's Secret credit card.

  • Zales credit card.

Is a Comenity/Bread credit card right for you?

Comenity issues so many co-branded cards that if you’re loyal to a store, you might be interested in one of the bank’s offerings. Typically, the more you shop at a particular store, the more appealing that store’s credit card can become.

Just be aware that Comenity's co-branded products are susceptible to the same kinds of issues that typically plague store credit cards, including low credit limits and inflexibility — both in terms of where you can use the card and redeem the rewards you earn from it. Also, generally speaking, store credit cards tend to have higher-than-average annual percentage rates, making it that much more expensive to carry a balance.

You may be better served by a cash-back card you can use anywhere, one that earns rewards you can redeem for a statement credit or direct deposit to a bank account.

» MORE: Before you get a retail credit card, consider your options

What Is Comenity Bank, and Are Its Credit Cards Right for You? - NerdWallet (2024)

FAQs

Is Comenity Bank a legitimate bank? ›

Is Comenity Bank legit? Yes, Comenity Bank is a legitimate financial institution that's been in business since 1989. They currently have over 135 retail partners and over 50 million customers have Comenity retail credit card accounts.

What credit card is from Comenity Bank? ›

The Comenity® Mastercard® Credit Card.

Is Comenity Bank owned by Capital One? ›

No, Comenity Bank is not owned by Capital One, it is a Bread Financial company that mostly issues store credit cards. Capital One, on the other hand, is one of the biggest banks in the U.S., offering a range of financial products and services, including credit cards, auto loans, and savings accounts.

What credit score do you need for Comenity Bank? ›

The Comenity Bank credit cards that are easy to get are the ones that require fair credit for approval. That means you'll need a score of about 640 or higher. And since the average person's credit score is about 40 points above that, these cards are well within reach for most of us.

What is the lawsuit against Comenity Bank? ›

A TCPA class action lawsuit was filed against Comenity Bank—which owns a number of popular store credit cards like Abercrombie and Fitch, Crate & Barrel, Ann Taylor, and Victoria's Secret just to name a few—alleging the bank placed call to consumers' cell phones using an automatic telephone dialing system and/or a ...

Is Comenity Bank owned by Chase? ›

Comenity Bank is a financial services company offering credit cards, personal loans, "buy now, pay later" plans, high-yield savings accounts and certificates of deposit. The bank is a subsidiary of Bread Financial, and you will see the Comenity name on credit cards issued by the bank.

Why is Comenity closing accounts? ›

Your Comenity Bank credit card could have been closed for various reasons, including the following: Inactivity. Your account was in default. Missed payments.

Who owns Comenity Bank? ›

Does Comenity Bank issue Visa cards? ›

AAA Travel Advantage Visa Credit Card Accounts are issued by Comenity Capital Bank pursuant to a license from Visa U.S.A. Inc.

What is happening to Comenity Bank? ›

Comenity Bank recently underwent a brand change. It's now Bread Financial, a financial services company offering payment, lending and savings products, among others. That means if you're already a Comenity cardholder, you'll eventually see Bread Financial and its new logo replace the Comenity Bank name and logo.

Is Comenity Bank a debt collector? ›

If you owe the debt and cannot pay it, you still need to respond. This will only give Comenity Bank Debt Collection a default judgment against you.

What credit agency does Comenity Bank use? ›

Bogdan Roberts, Credit Cards Moderator

Comenity Bank uses all three major credit card bureaus (TransUnion, Experian, Equifax) for credit card approval. So, if any of your credit reports are frozen, you should unfreeze them before submitting an application for one of Comenity's credit cards.

What kind of card is Comenity? ›

Some credit cards from Comenity Bank are included in major card networks like Visa and Mastercard, which means they can be used almost anywhere. Other Comenity Bank cards are store cards only, meaning they can only be used in a specific store or a family of stores.

Is Comenity Bank a hard inquiry? ›

Yes, Comenity Bank does a hard inquiry on your credit report whenever you apply for one of its credit cards. A hard inquiry usually results in a slight decrease in an applicant's credit score, but the effect only lasts for a short period of time.

Does Comenity Bank automatically increase credit limit? ›

Yes, it's possible to get a credit limit increase without asking, typically after 6-12 consecutive months of on-time bill payments with a new credit card account.

Has Comenity Bank been breached? ›

Was Comenity Bank hacked? A. No, we did not experience a cyber attack of any kind. The servicing issues we are experiencing are the result of a planned system update.

How safe is Comenity Direct bank? ›

Is Bread Savings FDIC insured? Yes, Bread Savings, formerly Comenity Direct, is a product of Comenity Capital Bank, which is FDIC-insured (FDIC Certificate No. 57570). This means that your money is insured for up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.

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