There is an almost infinite number of credit cards available on the marketplace today. Unfortunately, each is slightly different, making the best credit card for you a challenging undertaking.
Often side-by-side comparison is difficult. And even when you can do that, it's not always obvious which is best. You gain in some places and lose in others. Throw loyalty schemes into the mix, and the picture becomes even muddier.
However, there is one card that may well tick all your boxes. And that's the Old Navy Credit Card. In this review, we will lay out how this credit card - like their clothes - will be a good fit.
If you are the type of personality that is cut-to-the-chase, here are our conclusions on the Old Navy Credit Card.
First up, it's issued by Synchrony Bank. And you earn points on all your purchases at Old Navy and those you make at Hill City, Gap, Athleta, Banana Republic. Plus, it is also accepted at Gap Factory and the Banana Republic.
The points systems earn you five points on the dollar, which is a meaningful incentive if you are a keen clothes shopper.
On top of that, Synchrony also offers a Visa version of the card. This Visa variant earns one point on everything you buy. However, you can only redeem these points when you buy merchandise from the Gap Inc group of brands.
Unless you have an insatiable appetite for clothes shopping, you may be better served using an alternative credit card. One that gives you flexible points or a cashback reward across a wider range of categories.
The major stumbling block with the Old Navy credit card is its rewards earning potential. The card is hobbled in two ways:
- There is a ceiling on the rewards you can rack up
- What rewards you do earn can only be redeemed against purchases you make at the Gap Inc. brand family.
Old Navy Credit Card Overview
Our rating - five stars
Welcome Bonus - Twenty percent off
Annual Fee - None
Regular APR - Variable APR of 25.99% on your purchases
Credit Score - Good to Excellent
● Register for an Old Navy Credit Card and obtain a 20% discount on your first purchase
● No annual fee
● Rewards scheme offering five points on the dollar spent at Gap brands
● Additional five dollar reward on every 500 points you rack up
● Get 20% extra points every three months
● You can use your rewards at any Gap Inc. outlet
● Exclusive offers year-round, plus you get early access to sales
● Zero fraud liability
● 25.99% Variable APR
What's the Old Navy Credit Card, then?
Well, it's a card issued through Synchrony Bank on behalf of Gap Inc. It is a store-linked credit card that earns you points you can use to make purchases across the entire Gap Inc family of outlets. This family comprises Old Navy, Hill City, Gap, Athleta, Gap, and the Banana Republic. Plus, their two factory outlets, Gap Factory and Banana Republic Factory.
The crucial thing to know is that there are two types of Old Navy credit card. So you will need to weigh up carefully which will work best for you. You can choose between:
● an in-store exclusive card that you can only use in the Gap Inc family of stores
● or a Visa card that you use to pay for purchases anywhere that accepts payment by Visa.
You, therefore, need to decide whether you want to earn points with the store card or have the greater flexibility of the Visa version.
Remember, too, that the card's loyalty rewards scheme pays out each cardholder five points on the dollar spent on Gap Inc. brands. The points are redeemable as in-store credit, so your purchase can end up costing you zero if you have enough points.
In addition, when you have accumulated 5,000 points, your card is automatically upgraded to the Navyist credit card. This elite card brings some great benefits, including:
● free shipping on eligible Old Navy products
● a point bonus
● free, minor alterations at the Banana Republic.
Take a glance here
● Get five points for every 1 dollar you spend with Gap Inc stores
● Earn a useful $5 reward on every 500 points you notch up
● Year-round exclusive offers
● Zero fraud liability
Why you should get an Old Navy Credit Card
The Old Navy Credit Card helps you earn rewards that can be used as in-store credit against merchandise purchases. You can redeem this in-store credit at any Gap Inc store across their entire range of goods. If you are not sure about which are Gap Inc outlets, the group comprises Old Navy, Hill City, Gap, Athleta, and the Banana Republic. You can also redeem in-store credit at Banana Republic Factory as well as Gap Factory.
How you earn rewards
This particular card offers five points for each dollar spent at the checkouts of the Gap Inc stable of brands comprising Old Navy, Hill City, Gap plus Gap Factory, Athleta, Banana Republic, and Banana Republic Factory.
On top of this, the Visa-backed card earns you a further point for each dollar you spend with other merchants.
Once you have racked up 5000 points, you get an account upgrade with the Navyist credit card. This status change means you can earn a very tempting 20% bonus on your accumulated points every quarter.
How to redeem Old Navy card rewards
Your rewards total is automatically included in each statement when you have gathered up to 500 points or more. Point rewards can be used in $5 increments, up to a maximum reward value of $50.
For example, say you earned 6000 points in a single statement cycle. You would then receive a $50 reward certificate plus another one worth $10.
You can use three rewards to help you purchase a single item, either in-store or via mail. However, up to five rewards can be redeemed when placing an order online or on the phone.
An important point to note is that reward certificates have an expiry date. So you have a time limit on how long you have to use your points. Furthermore, Gap Inc will only issue reward certificates up to the value of $250 in a single billing cycle. So it's worthwhile keeping an eye on your rewards total. However, there's nothing to be lost as any points not issued as redeemable credit gets rolled over into the next billing cycle.
How much you can earn in potential rewards
The greatest potential comes from your spending in Gap Inc stores as the Old Navy credit card gives out five points on every dollar.
Using various government agency data, we have worked out how much is spent annually in various categories by a family on the 70th percentile of income. This 70th percentile of economically active households brings in a total annual wage of just over $100k per year. The estimated spend at department stores is estimated to be a little more than $2,300 per year. Say, for his calculation's purposes, that about half is spent on Gap Inc brands.
Let's further assume, for calculation purposes, that you earn 20% off a $250 purchase when you first use the card. And let's, for argument's sake, also say you love value discounts on your purchases as much as you do cashback rewards.
Yes, this is a lot of assumptions, but keep with it. We also further suppose you only want to use the card to buy clothes. Again, the assumption here is that this is the case since there are plenty of other credit cards with no annual fee. Further, they also offer more generous cashbacks in the region of 1.5% to 2% on all purchases.
So against this perfectly feasible background, what's the likely bottom line in the first year?
Let's see how the Old Navy card stacks up:
● a $50 discount on the $250 purchase
● rewards amounting to $55 on your first $1,000 expenditure on Gap brands
If you spent this total at Gap Inc outlets and paid with the Old Navy card, you would bag an upgrade to the Navyist credit card. This would mean the rewards you receive in the second year of being a cardholder would be a hefty $65.
However, you should note that you must obtain the 5,000 reward points to get Navyist status within the calendar year. To do so effectively means spending over $1,000 each year on Gap brand products.
It's not merely a case of harvesting points on your purchases on Gap Inc product brands. Indeed, there are quite a few extra perks if you are a frequent Old Navy shopper.
● Exclusive year-round offers
● A heads-up about popular sales so you can get in first
And once you have achieved the upgrade to the Navyist card for accumulating 5000 points, you can earn the following additional benefits.
Navyist cardholders are entitled to free three-to-five day shipping on their online orders at Old Navy, Athleta, Gap, and the Banana Republic.
Free, minor alterations
You can also get basic alterations on items you purchase at Banana Republic. For example, this includes free of charge shortening hems on dresses, skirts, and pants.
Exclusive toll-free hotline
Cardholders have access to a priority hotline number when they need to reach out to customer service.
The Variable APR on your purchases is a hefty 25.99%, which is not particularly competitive. However, if you don't plan on settling in full each month, you should be aware of the interest commitment.
● On the upside, there's no annual fee.
● There's a 3% foreign currency transaction on each purchase.
● There's no balance transfer fee if you switch from another card provider
● Cash advance fees are $10 or 5% of the cash advance amount, whichever is the higher.
Get ready to rumble! We have pitched the Old Navy card up against some of its heavyweight rivals. So let's see how Old Navy fares against the competition. First up:
Old Navy versus Target Redcard
Target's Red Card isn't a like-for-like comparison with the Old Navy card. However, the fixture helps illuminate what a standard in-store credit card should look like.
The chain requires that you collect points and redeem your in-store credit in $5 increments.
Red Card members get an immediate 5% off all their purchases at the checkout.
The Redcard rewards scheme is better because you can obtain the card's benefit straight away on everything you buy. This is much preferable to being locked into a points scheme you can benefit from later.
In addition, the Target Red Card has a shopping cart of continuing perks you can access from the first day you use the card. These benefits include free shipping when you order at target.com, and a further 30-day returns guarantee on the items you purchase.
Finally, the Red Card from Target supplies a 10% discount on one shopping visit every year on the anniversary of you becoming a cardholder.
Without a doubt, Target Red Card.
Old Navy versus Chase Freedom Unlimited
The Chase Freedom Unlimited card, like Old Navy, has no annual fee. However, that's very much where the similarities end.
Option of in-store only or a Visa card version. Both are linked into Gap Inc's rewards scheme, but this equates to 5% off their products.
Chase Freedom Unlimited
Chase is the more flexible of the two card providers. A Chase card earns a cashback of 1.5% on all your general purchases, plus there are extra cashback options in many other categories too.
If, like most Americans, your spending patterns probably mean you would be better off with 3% cash back at pharmacies and eateries than a 5% discount on Gap Inc brands;
Chase also outstrips Old Navy as you can collect flexible points to redeem against travel. Chase Freedom Unlimited, therefore, is a great starting point to gather transferable points. In addition, you can start earning cashback straight off the bat. And upgrade to the Ultimate Rewards scheme if you link it later to a Chase premium card.
Without hesitation, it is Chase Freedom Unlimited.
Old Navy versus Citi Double Cash Card
This is another interesting match as both offer their cards without annual fees. However, it's challenging to outstrip the Citi Double Cash card if you want value and simplicity.
Reward scheme only on Gap Inc products unless you have their Visa card.
Citi Double Cash
You earn 1% when you pay using their card and then get a further 1% cashback when you settle your account, giving you a combined 2% cashback.
When approved for a Citi Double Cash card, you will be enjoying a 5% discount on a fraction of the spend required by Old Navy to get 2% off. If you use their card on a daily basis for gas and groceries, the rewards from having a Citi Double Cash card will soon outpace what you can earn with Old Navy credit cards.
The Old Navy credit card is very limited as it is a store card. You can only earn rewards on the merchandise you purchase from Gap Inc’s brand family of stores. Unless you are a big fan of their clothing and a regular big spender at their stores, we would recommend you look elsewhere.
The Old Navy rewards program only really makes sense if you spend hundreds of dollars at their outlets every month. Suppose you don't fit into this category. In that case, the $5 discount will either be forgotten or used to purchase something extra that wasn't on the shopping list.
In reality, most people would get a better overall deal with a card that offers a useful 2% cash back on general purchases or bonuses on everyday shopping categories.
If you are currently weighing up an Old Navy Credit Card, look first at our review section entitled 'How does the ON card stack up against the opposition?'
You would be wise to think about how much value you would get from better rewards on your everyday shopping. So seriously consider, instead, the Chase Freedom Unlimited and Citi Double Cash cards.
What are the downsides to the Old Navy credit card?
While Old Navy makes a big noise about not charging an annual fee, what they don't mention is there's no initial interest-free period.
They also charge interest at 25.99% Variable. This level of interest is not unusual for card stores. Consequently, you will be hit with some rather heavy interest charges if you don't pay the card off every month.
Can I go paperless with the Old Navy card?
Yes, you can. The Old Navy Visa card website allows cardholders to go paperless and win an additional 500 points for all of the following:
● supplying your email address to opt into Gap’s brand updates and offers newsletter
● Opting for paperless billing
The extra thousand points you earn by doing the above can be redeemed as a $10 discount at all Gap Inc outlets.
Can I use Old Navy reward points at other stores?
No, the rewards scheme is specific to Old Navy and its affiliated stores under Gap Inc umbrella of stores and outlets. You can only spend your rewards as in-store credit; you cannot get cashback.
You can only use the card in Gap Inc stores. You can't use it to pay for food shopping or gas, for instance. Plus, your reward points expire two years after your last purchase.
If you want a credit card to pay for general day-to-day shopping and the occasional big-ticket item, you should opt for a general cashback credit card instead. These types of cards can be used pretty much everywhere and are not tied to a particular outlet or group of companies.
Are in-store credit cards a good idea?
Not particularly. Almost all charge way more interest than a regular credit card. They are not versatile as you can only use them in-store or on the company's website when online shopping. They only pay off if you regularly spend a lot per month in the store.
Which stores will accept an Old Navy card?
As well as Old Navy and Gap, you can pay with an Old Navy card at all Gap-related stores and outlets. These also include:
● Banana Republic
● Gap Maternity
● Old Navy Outlet
● Banana Republic Factory Store
● Gap Outlet
● Gap Factory Store
Do I need a credit score to get an Old Navy credit card?
Yes, you should have a credit score of at least 620. To apply for an Old Navy in-store card, you should have a reasonable credit score of 620 or better. Old Navy's Visa card, though, has stricter eligibility criteria as you can use it in all stores that accept payment by Visa.
How can I pay my Old Navy card bill?
The first thing to do is to have your bank account numbers and the ABA routing code number ready to pay our bill.
The next step is to log onto the Old Navy card account website with your user name and password.
Once you are in, click or tap on the "Make a Payment" link that appears in the Payments menu.
Then follow the detailed instructions on the screen to make the payment.
Should I pay off my Old Navy card bill in full each month?
Yes, for sure. Not only will it work out more expensive due to the hefty interest charges, but you also won't be doing your credit card score any favors having an outstanding debt. A high balance will negatively impact your score because you have increased your credit utilization ratio.