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Ulta Credit Cards – The Ugly Side of Beauty.

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I am not a consumer of cosmetics. As such, maybe everything I say about the Ulta Ultamate Rewards Mastercard is wrong.  Nevertheless, after reviewing what the Ulta Mastercard offers, I will say this is a card that is largely useless unless you are totally into Ulta as your go-to-shop for cosmetics and other beauty-related purchases.

What You Need to Know About Ulta Credit Cards: Benefits and Features

Ulta offers two credit cards: the Ultamate Rewards Mastercard and the Ultamate Rewards credit card.

Let’s dispense quickly with the Ultamate Rewards credit card. It is a store-only card, meaning that it works only for purchases made at Ulta Beauty stores or online at Ulta.com. With this card you get:

  • 20% of your first purchase;
  • 2 points for every $1 spent at Ulta Beauty stores or Ulta.com.

That’s the sum total of benefits.

You can redeem your accumulated points for Ulta purchases, starting with 100 points, which is equivalent to $3. You cannot use the points anywhere else. We’ll come back to redemption value in a moment…

But let’s move on to the Ultamate Rewards Mastercard first, since the benefits are different.

Unlike the Ultamate Rewards credit card, the Ultamate Rewards Mastercard is a traditional credit card, meaning you can it for purchases anywhere in the world that accepts Mastercard. With this Mastercard you get:

  • 20% off your first purchase;
  • 2 points for $1 spent at Ulta Beauty stores of Ulta.com;
  • 1 point for every $3 spent anywhere else’
  • 500 Welcome Bonus points (equal to $17.50 in purchases at Ulta) after you spend $500 in the first three months anywhere that is not Ulta.

So, Are Ulta Credit Cards Good for Me?

This entirely depends on your spending pattern when it comes to cosmetics.

If Ulta, for you, is the ultimate destination for all your cosmetics and beauty needs, then the Ultamate Rewards Mastercard is probably a good choice. 

And if you are the ultimate Ulta shopper, then the Ultamate Rewards Mastercard is far superior to the plane Ultamate Rewards credit card as with the Mastercards you get 3 points for every $1 spent, vs 2 points with the Ultamate Rewards card. Plus, it allows you to accumulate points on all your other daily purchases in life.

The upshot is that you will earn rewards much faster with the Mastercard. So, to me, the Ultamate Rewards credit card is a non-starter for the Ulta shopper.

But here is the giant caveat: Ultamate Rewards Mastercard is good only for spending at Ulta. It is not a card that makes a whole lot of sense for spending on daily, non-beauty-related purchases. One point for every $3 spent is inferior to other credit cards that offer far better cashback options, such as Citi Double Cash or Capital One Savor.

Again, however, I will say you really need to be the ultimate Ulta shopper, and I’m not saying that to be cute with my words.

Ulta’s Ultamate rewards are only redeemable for Ulta purchases at checkout. You cannot turn your points into cashback that you can then use for, say, groceries or travel or whatever. 

You can only use them for Ulta Beauty purchases.

This is not necessarily a bad thing for heavy users of Ulta, because the money you spend at Ulta will convert into Ultamate Rewards dollar value that is more than you would get from spending the same amount at Ulta on a typical credit card offering cashback options.

If you spend $100 at Ulta on an Ultamate Rewards Mastercard, you will earn 200 points worth $6. If you spend the same $100 on a credit card that offers 2% cashback, you’d earn $2.

The more you spend at Ulta, the more the gap increases between Ultamate Rewards dollar value and the value you’d earn with a 2% cashback credit card.

What’s the Dollar Value Comparison for Non-Ulta Purchases?

However, when you spend on an Ultamate Rewards Mastercard away from Ulta, you’re doing yourself a financial disserve. Consider this chart comparing the Ulta Mastercard to credit cards offering 2% cash back or 1.5% cashback:

Spend $Ulta Value ( Ulta Spending) Ulta Value (non-Ulta Spedning)2% Cashback1.5% Cashback
$100$6 $1$2$1.5
$250$15$2.5$5$3.75
$500$30$5$10$7.5
$750$45$7.5$15$11.25
$1000$60$10$20$15
$2000$120$20$40$30

Because Ulta offers 1 point for every $3 spent away from Ulta, you would need to spend $300 to earn 100 Ultamate Rewards points worth $3. But if you spend that same $300 on a credit card offering 2% cash back, you’d pick up $6. With a card offering 1.5% cash back, you’re also ahead.

In fact, at just about every Ultamate Rewards level, you’d be much better off having used a 2% or 1.5% cash back card. It’s only at the 2000-point levels that Ulta wins out at 2%, and at the 1000-point level where it beats a 1.5% cash back card.

And again, the Ulta Mastercard only makes sense if you are adamant about buying your cosmetics and beauty gear at Ulta.

What Credit Score You Need to be Considered

For the vast majority of American consumers, either card should be relatively easy to obtain since you will only need a “good” credit, meaning a credit score of roughly 670 or higher.

Ulta Credit Card Alternatives for Poor or No Credit

Ulta is not a card for consumers with a poor credit history or no credit history.

If you’re one of those consumers and you’re looking for a credit card, then you should be looking at the Capital One Platinum credit card.

As I routinely note, the Capital One Platinum card is one of the absolute best for subpar credit. It imposes no annual fee and it offers and automatic credit-limit increase at five, consecutive on-time payments. 

The on-time payments and the credit-limit increase will bump up your credit score because of the way scores are calculated. You won’t get any miles or cash-back or signup bonuses with Capital One Platinum, but in a situation where you’re trying build or repair your credit, perks are not what you need.

Which Credit Cards Do Better Job?

For spending away from Ulta, there are several credit cards that offer far better value than the Ulta Mastercard.

With Citi Double Cash Card you can Earn cash back TWICE. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. There’s no annual fee … though there’s also no signup bonus at the moment.

Citi® Double Cash Card – 18 month BT offer

Discover it® Miles Card
How to apply
To apply for this offer please contact
Citibank
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INTRO APR on Purchases
N/A
INTRO apr on Balance Transfer
0% 18 months on Balance Transfers
Regular APR
15.99% – 25.99% (Variable)
Annual Fee
$0
Rewards Program
Citi® Double Cash Reward Program
Bonuses & Rewards
  • Earn cash back TWICE. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
  • To earn cash back, pay at least the minimum due on time
  • Balance Transfer Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 15.99% – 25.99% based on your creditworthiness.
  • Balance Transfers do not earn cash back
  • 3% foreign transaction fee
  • + Click “Apply Now” to see the applicable balance transfer fee and how making a balance transfer impacts interest on purchases.
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 HSBC Cash Rewards Mastercard offers an introductory 3% cashback on the first $10,000 in spending in the first year, and then 1.5% cashback on everything. Plus, on your card anniversary each year, HSBC will give you a 10% bonus on all the cash you’ve earned during the year. There’s no annual fee.

HSBC Cash Rewards Mastercard® credit card

INTRO APR on Purchases
0% Intro APR for 12 months on purchases
INTRO apr on Balance Transfer
0% Intro APR for 12 months on balance transfers
Regular APR
Variable APR of 15.24%, 19.24% or 25.24%
Annual Fee
None
ABOUT THIS CREDIT CARD:
  • Earn unlimited 1.5% cash rewards on all purchases.
  • Earn an Introductory 3% Cash Back on all purchases in the first 12 months from Account opening, up to the first $10,000 in purchases.
  • 10% Anniversary Bonus on all Cash Rewards earned once a year.
  • No Annual Fee.
  • 0% Intro APR for 12 months on purchases and balance transfers, then a 15.24%, 19.24% or 25.24% variable APR.
  • No Foreign Transaction Fees.
  • $0 liability for unauthorized purchases.
  • Terms Apply.
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Bank of America Cash Rewards is potentially equally as good at Ulta purchases as is the Ulta Mastercard. This BofA card offers 3% cash back in your chose of bonus category, one of which is online shopping. 

Bank of America® Cash Rewards Credit Card

INTRO APR on Purchases
0% Introductory APR on purchases for 12 billing cycles
INTRO apr on Balance Transfer
0% Intro APR for 12 billing cycles for balance transfers made in the first 60 days
Regular APR
16.24% to 26.24% Variable APR on purchases and balance transfers
Annual Fee
$0
Rewards Program
BankAmericard Cash Rewards™
Bonuses & Rewards
  • + 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings
  • + 2% cash back at grocery stores and wholesale clubs
  • + 1% cash back on all other purchases
  • Online $150 cash rewards bonus after making at least $500 in purchases in the first 90 days of your account opening
  • You’ll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
  • There's no annual fee and your cash rewards don't expire. Each month, as you plan for future purchases, you can change your 3% choice category online or through our mobile app.
  • If you're a Preferred Rewards client, you can increase that bonus to 25% - 75%
  • 3% of each transaction in U.S. dollars
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So, if you plan your Ulta purchases so that they occur at Ulta.com, you’ll earn the same 3% as you would with the Ulta Mastercard – the major benefit being that you can then use that cash back value however you wish, at Ulta or anywhere else. 

Plus this card has a $200 signup bonus after you spend just $1,000 in the first three months. And there’s no annual fee.

The Wrap Up: Should I Apply for the Ulta Credit Card?

I’ve reviewed a lot of store-branded credit cards for which it was easy to say “No – don’t get it.”

I can’t immediately say “No” to Ulta’s Ultimate Rewards Mastercard because I know that Ulta is a hugely popular destination for cosmetics and other beauty products for lots of consumers of those goods. 

As such, the card can make sense for heavy users of Ulta – so long as you use the card only for your Ulta purchases. Doing so means you will accumulate Ultamate Rewards points that will generate benefits in dollar terms that beat what you would otherwise earn with a 2% cash back card.

That said, if you’re just a casual user of Ulta, the card is a pass. And if you want cashback that you can use however you wish, then the Ulta Ultamate Rewards Mastercard is a no-go.

Editorial Disclosure: Opinions expressed here are author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

UGC Disclosure: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved, or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

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