Comenity Bank started out in 1986 as an issuer of credit cards. Today, more than 50 million carry Comenity Bank credit cards and over 145 retailers have co-branded their cards with the company. If you’re thinking about getting a Comenity credit card, read our article first. We’ll tell you everything you need to know about Comenity Bank credit cards so you can decide if it’s the right card for you.
Two Types Of Comenity Credit Cards Offered
There are 2 types of Comenity credit cards to choose from. See the following breakdown of the options:
Private Label or Closed Loop Credit Card
This is a credit card that is co-branded with another company. Most of the Private Label cards of Comenity are partnered with retailers although there are co-branding arrangements with healthcare providers, travel agencies, financial institutions, car dealerships, and gasoline stations. A Private Label credit card can only be used at the establishment of the company it’s co-branded with.
Open Loop Not Co-Branded
An Open Loop credit card has arrangements with Visa, Mastercard, and Discover. You can use this card in any establishment that accepts Visa, Mastercard or Discover. Both types of Comenity credit cards can offer you promotions, discounts, rewards points, and special offers but with the Private Label, these packages can only come from the retailer it has co-branded with. The Open Loop credit card can offer you special packages that are available also in Mastercard, Visa, and Discover.
Benefits Of Getting A Comenity Credit Card
If you’re a loyal customer of a particular brand and the retailer has a co-branding arrangement with Comenity, it will be a good idea for you to get a Private Label credit card. You can enjoy the benefits offered by that retailer and Comenity, and be able to maximise your shopping experience.
A Comenity credit card is also a good option for those whose credit card history is spotty or less-than-desirable. It’s easy to apply and be approved for a Comenity credit card. Keep in mind that part of the application evaluation process is reviewing your credit history by pulling out your records at Experian or Equifax which are both credit bureaus. Once your application has been approved, Comenity will inform the 2 credit bureaus plus a third one, TransUnion.
Thus, while the credit card is easy to get, the tradeoff is that the application process alone might affect your credit score. You must also keep in mind that Comenity will send the 3 credit bureaus a regular report about your transactions and online activities with the 3 credit bureaus.
No annual feed
The final benefit of having a Comenity credit card is that you don’t have to worry about paying annual fees but the available credit might be insufficient for your spending needs. The amount of credit given can start out as low as US$500. If you maintain a good history and reputation with Comenity as being a timely payor of your account, then there should be no problem requesting for an increase in the spending limit.
How To Apply For A Comenity Credit Card
There are only 2 qualifications to apply for a Comenity credit card. First, you must be at least 18 years of age. Second, you must be a citizen of the United States of America. Simply apply on the Comenity website and provide all the necessary information. Also, there are 2 ways to find out if your application was approved or not. If there are no issues with your application, you will be notified right away by Comenity. then your account details will be sent to you in around 2 weeks. However, if your application requires further review, Comenity might get in touch with you in seven to 10 days’ time.
How To Pay For Your Comenity Credit Card Bill
If you want to pay for your credit card bill, just go to the Comenity website, log in to your account, and go through the payment process as indicated. You can find your bill by going to “Transactions and Statements” where you can trace your billing history as far back as 24 months.
Comenity credit cards will penalise you for late payments. The best way to avoid this penalty is to pay your account on time. Sure, you can pay on the date itself but you must allow enough time for your funds to be debited from your personal account to pay off your credit card bill. The process of transferring funds might take 2 days. For this reason, you might see a notification of “Pending Payment” on your account. There is also a cut-off time for paying your account which is 8 pm Eastern Time.
List Of Comenity Credit Cards
As mentioned above, there are more than 145 stores, mostly in retail, that have co-branded with Comenity. We’ve come up with a shortlist of retailers below:
- Ann Taylor
- Christopher & Banks
- Henri Bendel
- Ballard Designs
- Diamond Elite
- West Elm
- Abercrombie & Fitch
- Blue Nile
- Design Within Reach
- Drapers and Damons
Frequently Asked Questions (FAQs) About Comenity Bank And Its Credit Card
In the following we answer some of the most frequently asked questions about comenity bank credit cards.
Is Comenity Bank a duly registered and licensed bank?
Yes. Comenity is a duly registered legal entity that has been licensed as a bank that can issue credit cards to individual consumers and enter partnership or co-branding arrangements with other businesses.
What happens if I can’t pay my credit card bill? Will Comenity Bank force a collection or will Comenity go after my salary?
Comenity Bank is not a collection agency and the chances are slim to none that the company will try to go after your salary to settle your outstanding account. However, Comenity Bank will contact you to remind you to pay the amount that’s due.
Can I get a Comenity credit card even if I have been declared bankrupt?
The best way to answer your question is that it would depend on the nature or circumstance of your bankruptcy situation. As we disclosed in this article, Comenity Bank will perform a hard pull and check your history with the credit bureaus. It’s highly unlikely that you’ll be approved for a Comenity credit card if you’ve been declared bankrupt to which it might be more to your benefit to apply for a secured credit card.
What is comenity pay on my statement?
This is simply a payment to your comenity bank credit card. You may not recognise it as your card is branded. Check the list above of comenity bank credit cards.