Does IKEA Offer Financing? All you Need to Know

IKEA is a leading furniture brand. It offers a few financing options to its customers around the world.

It has recently launched a new buy now, pay later financing option. It also partners with VISA and private lenders like Klarna.

Let us discuss what is IKEA financing and how does it work.

Does IKEA Offer Financing?

IKEA offers financing options that allow its customers to use credit terms of paying 0% interest.

IKEA has recently introduced a new financing option for its customers. It previously offered the same credit policy that required a minimum purchase of £300 and an installment tenure of 12 months.

The financing option from IKEA is an improved version of the previous program. IKEA customers can now use the “buy now, pay later” program, third-party financing options, and the usual credit card financing options to make purchases.

The new financing program offers a reduced minimum purchase condition of only £99. It also now includes third-party lending partners like Klarna in selective regions.

Note: The financing program offered by IKEA may vary slightly in terms and lending partnerships for different regions.

Buy Now, Pay Later

IKEA has also started its financing program of the “buy now, pay later” like many other brands.

Customers can use this financing service as a personal loan for purchases of up to £15,000. The minimum purchase for this amount is £99 only.

This financing option puts a soft credit check inquiry as well. It means IKEA will evaluate your credit score for approval.

Customers can choose payments terms from 3 months to a maximum of 60 months (5 years). All payments terms are offered at a 0% interest rate.

The payment tenure increases with the purchase amount. It means eligible customers for a financing option up to £ 15,000 would enjoy the longest installment term (up to 60 months).

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How Much You Can Borrow with the IKEA Financing Program?

The maximum that you can borrow with the IKEA’s buy now, pay later program is £ 15,000. However, it depends on your credit score and some other important points.

You will need the following to apply for the financing program:

  • Be at least 18 years old and have a valid ID (e.g. permanent UK ID)
  • A personal bank account
  • A good credit score
  • Contact details like an email address, mobile number, and home address
  • Your current employment status (and income details)

Some points that may result in your disqualification include:

  • Your credit history displays a loan default
  • You apply with a business bank account details
  • You are below 18 or do not have a valid ID
  • You have been bankrupted
  • You apply with a bank account having a power of attorney

It’s a tentative list of some key points that you should consider before applying. IKEA considers your ability to repay the loan as any other lender does.

So, how to apply for the financing option?

Customers can download the IKEA app or apply through its website. Once approved, you can then use that credit for IKEA purchases.

Your approval and payment terms will largely depend on your credit score and income.

Short-Term Financing

The financing options from IKEA can vary from region to region. For instance, IKEA Australia offers two financing programs for short-term and long-term financing with slightly different terms.

The short-term financing option includes:

  • The maximum payment term is 5 months only
  • The payment term for a loan up to $ 1,000 is only 2.5 months
  • The payment term for a loan up to $ 2,000 is up to 5 months
  • Borrowers can choose 5 or 10 installments for fortnightly or monthly installments
  • It comes with $8 monthly fees
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Long-Term Financing

The long-term loan includes similar payment options and comes with the same 0% interest rate. However, borrowers need to fulfill the minimum payment terms and to repay within the allocated period to avoid interest charges.

  • A loan amount of $ 2,000 – $ 4,999 comes with a 12-month installment plan
  • A loan amount of $ 4,999 – $ 50,000 comes with a 50-month installment plan
  • Borrowers need to pay a minimum of $30 or 3% of the remaining balance
  • Both the short-term and long-term schemes come with additional $99 annual fees

The 0% interest rates apply for a limited 110 days only. If borrowers do not repay within this limit, they’ll incur an interest charge.


The US IKEA chapter offers the PROJEKT credit card for its customers. It offers a 0% financing option for eligible customers and certain purchase limits.

Here are a few key points about the IKEA PROJEKT credit card.

  • PROJEKT credit card can only be used at IKEA US stores.
  • It comes with $0 annual fees.
  • It offers 0% interest with a repayment period of up to 24-months.
  • The installment terms include 6-moths for of $ 500- $ 1,499, 12-months for $ 1,500- $ 4,999, and 24-moths for $ 5,000 +.
  • Standard APR is 21.99% if borrowers do not repay the full loan amount in the allotted period.

IKEA Visa Credit Card

IKEA’s other flagship financing option comes through the VISA credit card partnership. Its customers can apply for both the PROJEKT and VISA credit cards at the same time.

Moreover, customers can also apply for its new financing scheme; buy now, pay later. However, the approval for one or all of these plans would depend on the borrower’s credit history, credit score, and other key factors.

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Here are a few key points:

  • It can be used in the US and anywhere in the world.
  • It also comes with $0 annual fees.
  • It comes with 0% interest charges for the same terms up to 24-months as outlined above.
  • The standard APR for VISA credit card usage after the interest-free tenure is 21.99% currently.
  • Customers get a cashback of 5%, 3%, and 1% respectively on qualified purchases at IKEA stores for different categories.

Alternatives to IKEA Financing

Certain details and conditions can lead to a difficult evaluation of your credit approval with IKEA.

For example, you need to make a minimum purchase of £99 in the UK and $ 500 for PROJEKT card. Also, the 0% APR applies only if you can repay all amounts within a certain limit.

Instead, you can consider a few alternative financing options.

Personal Loan

In many cases, you’ll get a better interest rate on a personal loan than on credit cards. Credit cards come with the highest APRs for borrowers.

Although most personal loans are unsecured as they do not require collateral, they’re still a good option.

Personal loans come with fixed monthly installments and lower APRs as compared to credit card payment plans.

Credit Card

If you use a credit card without a partnership program like IKEA, you’ll incur the standard APR from the first day.

With the IKEA partnership program with VISA and its own PROJEKT card, you can save interest charges for the first few months.

After that, you can repay the remaining balance with the same APR as a normal credit card installment term.

Private Lenders

Alternatively, IKEA customers can use some third-party lending options. For instance, KLARNA offers extended credit options to IKEA customers in selective countries. However, the plan is offered for purchases of € 2,500 only.