Gap Credit Card Review: Earn 5 Points Per Dollar at Gap Brands

The Gap store credit card is one that you can use at multiple brand stores including Gap, Old Navy, Banana Republic, and Athleta. There are two types of Gap credit cards. There’s the store exclusive GapCard that you can only use at the Gap Inc. brand stores listed above. The Gap Visa Card has the same rewards benefits of the GapCard, but it can also be used anywhere Visa is accepted.

In this post we’ll discuss:

  • The Gap rewards program
  • Interest and fees
  • How to apply for the card
  • The hazards of store cards

Gap Credit Card Reward Basics

When you are approved for a Gap credit card, you get $15 off your first credit card purchase made at Gap or Gap Factory stores.

You earn 5 points for every dollar spent at Gap Inc. brand stores, including Old Navy, Banana Republic, and Athleta. Gap Visa Card members earn 1 point per dollar at other stores where Visa is accepted as well.

Both GapCard and Gap Visa Card members receive special promotions to earn extra points and birthday savings throughout the year. Cardholders can also take advantage of 10% off Tuesdays at Gap and Gap Factory stores.

How to redeem points

There’s no cap on the number of points you can earn. Every time you reach 500 points, you’ll receive a $5 reward. You can use this reward to get $5 off your next purchase of greater value.

Points earned cannot be redeemed for cash or used for statement credit or gift cards.

If you don’t make enough to earn the $5 reward during a billing period, you can roll over the points you have to the next month. Points expire 24 months after your last purchase on the card, so you don’t want your card to go completely inactive.

Gap Silver status

Gap has a second rewards tier that’s exclusive to cardholders who spend big bucks.

To obtain Gap Silver status, you need to earn 5,000 points within a calendar year (e.g. spend at least $5,000). You must also requalify each year to stay on this rewards tier.

The benefit of being a Gap Silver member is that you get 20% extra bonus points at the end of each quarter.

For example, if you were to earn 1,000 points (by spending $1,000) in a quarter, you’d get an additional 200 bonus points.

In addition, Gap Silver members get:

  • A sales day of their choosing for additional store discounts.
  • Free online shipping with no minimum purchase required.
  • Free basic alterations on Banana Republic purchases.

Interest and Fees

The Gap credit card has no annual fee. However, like most store credit cards, it comes with a staggeringly high interest rate — 25.24% APR. This rate is right on par with other popular retail branded credit cards, but about two points higher than the average APR for store credit cards today.

If you get the Gap card, it’s crucial to pay it off in full each month to avoid racking up tons of interest charges. Interest is charged when you carry a balance instead of paying it off. Like any other credit card, you can avoid interest by keeping your credit card balance low and manageable for each billing cycle.

Applying for a Gap Credit Card

You can apply for the Gap credit card online or in any Gap brand store. You’ll be assigned the type of Gap credit card at application.

There isn’t a specific credit score guideline used to determine which applicants get approved or denied. Although the qualifying criteria is more strict for the Gap Visa Card than it is for the GapCard.

According to a representative from Gap credit card services, you may get approved for the Visa card if your credit score is in the good or excellent range (a score of 700 or above). You may get approved for the GapCard instead if your credit score is fair (a score in the 600s).

Keep in mind, other factors from your complete credit history may disqualify you from a credit card, so having a score within these ranges does not guarantee approval.

Hazards of Store Credit Cards

A store card may be easier to qualify for than other major credit cards because you can get approved with fair credit. But these cards do come with their fair share of downsides.

We’ve already mentioned the high interest rate. You never want to carry a balance on a store rewards card because the interest charges can exceed what you earn in rewards.

The other negative of this store rewards program is that rewards earned can only be used on brand merchandise.

With other major rewards credit cards, you can earn more points (or cash back) in multiple ways and you have more redemption options such as cash back or statement credit.

Other Cards That Can Be Used for Retail Spending

Above we covered some reasons that a store card may not be the most valuable and flexible card to have in your wallet. Here are two low-interest cards with no annual fee that can reward you for diverse spending.

The U.S. Bank Cash+ Visa Signature Card rewards program allows you to choose bonus categories. You can earn an unlimited 2% cash back on an essential category of your choosing like grocery stores, restaurants, and gas stations.

There are also two 5% categories on your first $2,000 in combined net purchases per quarter.

In these categories, you can choose from retail stores, department stores, and more. (Find out the other 5% bonus categories here.)

This U.S. Bank card lets you use cash back as a statement credit or deposit funds into a U.S. Bank savings, checking, or money market account. There is currently a 0% introductory APR for the first 12 billing cycles. After that, your interest rate is 13.49% to 23.49% APR.

The Citi Double Cash card is a no-fuss rewards card that gives you 2% cash back for all spending. There’s no need to select bonus categories each quarter. You simply earn cash back on whatever you buy and then use the cash back for checks, statement credit, or gift cards. The interest rate is currently 13.49% to 23.49% APR.

Who Will Benefit the Most from a Gap Credit Card

If you often shop at Gap and Gap Inc. brand stores, a store card is probably one you have considered or have at least been asked to apply for at the register. While it does reward you for spending, this store card has high interest and a rewards program that can be limiting.

Before applying, think about whether you spend enough money at these retail stores and if you could be better served by the rewards program of another credit card.

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