This post is all about the Ross Dress for Less credit card rewards and whether it’s worth applying.
Estimated Reading Time: 4 minutes
You’re at the checkout of your favorite discount retailer and the customer service representative asks the dreaded question, “Would you like to save 10% on your purchase today?”
While the logical answer to that question is, “Yes, of course!” you’ve been around long enough to know that there is a catch. The catch often sounds like, “The credit approval takes less than 2 minutes.”
As a people pleaser, saying no has always been a challenge for me. However, I’ve become good at responding with a firm “Not today” to every inquiry. Retailers often capitalize on the pressure of on-the-spot decisions in a fast-paced environment, leading to quick and sometimes poor judgments.
In light of this, this post will dive into the reward offerings of the Ross Dress for Less credit card. It will also explore the idea of alternative payment methods to enjoy similar rewards without committing to the often high annual percentage rates.
Is there a Ross Credit Card?
Yes, Ross Dress for Less stores now offer credit cards. Based on the information I gathered from the web, this offering is relatively new. In July of 2023, this same question was asked to Wallethub and received “No, there is no Ross Credit Card at the moment” as a response from the Credit Card Moderator.
However, dealtown shared the good news by providing a snippet of the email Ross Stores sent to their subscribers on November 10, 2023, urging them to consider applying. Just in time for holiday shopping!
Ross Dress for Less Credit Card Rewards
According to the Ross Dress for Less website, Ross now offers two different credit card options. The first one is the Ross Mastercard and the other is the Ross Credit Card. The offerings are very similar with the only difference being that the Ross Mastercard earns 1% back in Ross Rewards on all other purchases where Mastercard is accepted. While the Ross Credit Card can only be used at Ross stores.
Ross Credit Card Rewards
- No Annual Fee
- Get 10% off a purchase at Ross Dress for Less
- Contactless payments and redeem certificates with your phone
- Earn 5% back in Ross Rewards on purchases at Ross Dress for Less
Ross Mastercard Rewards
- No Annual Fee
- Get 10% off a purchase at Ross Dress for Less
- Contactless payments and redeem certificates with your phone
- Earn 5% back in Ross Rewards on purchases at Ross Dress for Less
- Earn 1% back in Ross Rewards on all other purchases where Mastercard is accepted
Is the Ross Dress for Less Credit Card Worth it?
One-time 10% Savings
While the initial 10% discount may seem like significant savings, it’s important to note that this applies to just one purchase. Once utilized, the ongoing rewards structure shifts to 5% back in Ross Rewards on Ross purchases and a mere 1% back on all other Mastercard transactions.
It’s important to highlight that the 5% back comes in Ross Rewards, not as real cashback. This encourages a cycle of spending and might not be as beneficial for customers looking for tangible money savings.
Annual Percentage Rate (APR)
If you’ve ever applied for a credit card, you know that store credit cards rarely advertise their annual percentage rates (APR). I dug through the Ross stores website’s fine print and terms of service but still couldn’t find the details.
Finally, the halfway point of the online application process revealed a startling 32.24% APR.
Note: This is a variable rate meaning it can fluctuate based on economic conditions.
According to the rate information chart, the 32.24% APR is based on the Prime rate plus 23.74%. The United States Prime Rate can be checked here at any point. As I write this the Prime Rate is 8.50% which is what makes up the 32.24% = 23.74% + 8.50%
This high interest rate simply highlights that this isn’t a credit card for carrying a balance. You’ll want to quickly pay it off to avoid significant interest charges.
Ross Credit Card Offerings vs Other Options
Unless you’re a frequent Ross shopper, the benefits offered by the Ross Mastercard or the Ross Credit Card may not justify the credit checks and potential impact on your credit score.
Comparing the Ross Mastercard’s 1% back on non-Ross purchases to alternatives from different financial institutions offering up to 5% back on various categories raises questions about the card’s long-term value. Additionally, the high APR, and the absence of additional benefits, such as 0% introductory periods, no foreign transaction fees, or extended warranty, question the overall appeal of the card
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Unwritten Fine Print of Loyalty Programs
Loyalty programs are not designed to generously share their profits with the consumers by giving you 5% back. Quite the contrary. The whole business model relies on you spending more upon approval. According to an article by McKinsey & Company, loyalty programs can boost revenue from customers by 15% to 25% annually through an increase in purchases or larger cart sizes.
How to Actually Save More
If you’re an individual who does not pay off credit cards before interest accrues, using a debit card might be your best bet. While I am a huge supporter of reaping the benefits of credit cards and personally use them for 99% of my purchases, it only works if you pay them off.
Here is an example:
Person A: Made a $300 purchase at Ross with their debit card.
Person B: Also spent $300 at Ross, using their Ross MasterCard and got 5% back in Ross rewards. That is $15 to use on their next trip, yay!
However, unexpected expenses led Person B to make only minimum payments, carrying the balance to the next month at a 32.24% APR. It took 29 months and an additional $136 in interest to pay off the $300 balance.
So, who was better off?
- Person A: $300
- Person B: $300 – $15 (rewards) + $136 (interest) = $421
To truly save, you have to stay on top of paying off your credit card by the due date to avoid predatory interest rates. If you’re not a frequent Ross store shopper, it may also be a good idea to explore other credit card offers with rewards surpassing 1% back on non-Ross item purchases.
Final Thoughts on the Ross Dress for Less Credit Card
I’ll end with this. I would only recommend the Ross store card to those who are already frequent Ross customers and those who are super vigilant about paying off their full balance by the due date. If both of those conditions apply to you, the 5% rewards back is a nice perk, though it would be better if offered as cashback. Afterall, if you’ re going to spend the money anyways, you might as well get something back.
If, in the example above, person B paid off the credit card right away instead of making minimum payments, they would be better off as they would end up with $15 in rewards that person A would miss out on by paying with a debit card.
Is the Ross Credit Card the best store card?
In my opinion, there is no such thing as a universal “best credit card”. Before applying for any card, everyone should do an audit of their spending habits to see where they spend their money currently.
By doing this, you won’t end up spending $500 on an annual fee for “the best travel credit card” if your current lifestyle does not allow you to take advantage of the miles. That money could be better applied elsewhere.
That is all! I hope this post helped you make smart financial decisions about choosing your next credit card. See you next time!
