TJ Maxx offers high-end designer clothes and accessories at a discounted price, making it one of the most successful retail businesses since the recession. Most shoppers are attracted by the appeal of saving money on luxuries—so when the TJX Rewards Card offers an additional 10% discount with the promise of earning additional gift certificates in the future, the deal can sound pretty enticing. But do the benefits really live up to the hype?
The Good
Like most in-store credit cards, the TJX Rewards Card offer for 10% off your purchase is a one-time deal. However, if you don’t feel like using the discount the day you sign up, you can actually save it and use it within 30 days of applying for the card. As far as application discounts go, this one is solid: you can wait until you’re making a larger purchase, and even use the coupon at a TJ Maxx/Homegoods superstore, where they sell furniture, rugs, lamps, and artwork. If you’re planning on redecorating your home anytime soon (and looking fashionable while doing it), the 10% savings sounds pretty sweet.
Then there’s the ongoing benefits to consider as well: the TJX card uses a rather arbitrary points system, but for the most part you earn $10 back in gift certificates for every $200 you spend. And yes, these gift certificates can be combined! You receive these in the mail during your next billing cycle, and they work just like store credit (so if you make a return later, you’ll get a gift card back).
You earn the most points when you shop at any MarMaxx store, which includes TJ Maxx, Homegoods, and Marshalls. If you’re approved for their MasterCard, you earn points when you shop at other retailers as well, though not as many. Other rewards credit cards will probably yield you better results outside of MarMaxx stores.
The MasterCard comes with a slew of additional benefits that are typical of other MasterCard cards. This includes price protection, extended warranty coverage, 0% fraud liability, cash access at ATMs, and identity theft resolution.
All TJX cards are also said to come with “unique shopping experiences” as an added benefit. However, after speaking to various employees, even they don’t seem to be sure what this means or what these events entail.
Finally, it’s worth noting that the card has no annual fee, though the interest rate discussed in the next section will likely negate that positive aspect.
The Bad
As far as the benefits go, they’re really only useful if you plan on making a big purchase at a TJ Maxx, Marshalls, or Homegoods store, or if you shop there frequently enough to make earning the rewards worth it. However, it’s still only 5% back in gift certificates—many other credit cards offer at least a 5% cashback bonus, which can be earned by shopping anywhere and then redeemed for cash, which is definitely more valuable.
And then there’s the interest rate—regardless of your credit score, the TJX Rewards Card interest rate sits at a hefty 26.99%. If you tend to carry a balance, this rate is a killer. The benefits of the rewards you earn are easily cancelled out by large interest charges. Many other rewards cards on the market not only offer better benefits but better interest rates as well.
The Verdict
Unless you are making rather large purchases at TJ Maxx, Marshalls, or Homegoods regularly, the TJX Rewards card pales in comparison to other comparable rewards cards. Even if you are a big spender, the high interest rate and lack of lucrative benefits makes the TJX Rewards Card rather unappealing. If you do plan on shopping at TJ Maxx, you’ll probably save more money by using better rewards cards like the American Express TrueEarnings card or the Discover It card.
