Old Navy credit card Review: Big Rewards When You Shop at Old Navy

If you do most of your clothes shopping at Old Navy, an Old Navy credit card could earn you lots of points. There are two card options, both issued by Barclays. The Navyist Rewards Credit Card works only at Old Navy (and all other Gap Inc. brands), and the Navyist Rewards Mastercard® can be used anywhere you can pay with Mastercard. Read our full Old Navy Credit Card review to see all the card's pros and cons.

This credit card is a good fit for: Consumers who shop at Old Navy often and want to earn points they can redeem for purchases with the retailer.

Top perks

You get a few valuable benefits with an Old Navy Credit Card.

30% off your first purchase

When you're approved for an Old Navy Credit Card, you receive 30% off your first purchase. If you open the account online, you'll receive a discount code you can use that expires 14 days after account opening. If you open the account in store, the discount will be applied to the first purchase made in the store that same day.

Ideally, you should wait until you have a big purchase to make so that you can get the most out of this sizable sign-up offer. If, for example, you used your discount code for a $500 purchase, you'd save $150.

Up to 5 points per $1

The Navyist Rewards Credit Card and the Navyist Rewards Mastercard® both earn 5 points per $1 on purchases at Gap Inc. brands. That includes:

• Old Navy
• Gap
• Banana Republic
• Athleta

The Navyist Rewards Mastercard® also earns 1 point per $1 on other purchases. Since that's not a high rate, and it doesn't have any other bonus categories, it's not a great choice for earning rewards on your everyday spending. Even though you can use it for other purchases outside Old Navy, you're better off using other rewards credit cards.

Points are worth $0.01 each.

For every 100 points, you get a $1 reward redeemable across the Gap Inc. family of brands.

No annual fee

Store credit cards don't usually charge annual fees, and Old Navy Credit Cards are no exception. Whether you get the Navyist Rewards Credit Card or the Navyist Rewards Mastercard®, you won't need to pay anything to carry it. No annual fee credit cards are a smart way to go if you prefer to keep your bills to a minimum.

Automatic Enthusiast status

There are three levels to Old Navy's rewards program:

• Core: The starter tier for those with under $500 in annual brand spending (this includes your spending at all stores in the Gap Inc. family of brands).
• Enthusiast: Requires at least $500 in annual brand spending or being a cardmember.
• Icon: Requires at least $1,000 in annual brand spending or 5,000 points as a cardmember.

By getting an Old Navy Credit Card, you'll start in the Enthusiast level. This has a couple of extra perks, including early access to deals and a quarterly bonus of 250 points every quarter that you make a purchase with one of the Gap Inc. brands.

What could be improved

Like most store credit cards, the Old Navy Credit Cards have room for improvement in several areas.

Introductory discount

This card's introductory offer (30% off your first purchase at Old Navy) can save you a lot of money. But there are much more valuable credit card sign-up bonuses, including some that offer $200 or more in cash back.

LEARN MORE: Best Credit Card Sign-Up Bonuses

Rewards outside of Gap Inc. brands

If you're approved for the Navyist Rewards Mastercard®, you can use it anywhere Mastercard is accepted. Although that's better than having a card you can only use at Old Navy and other Gap Inc. stores, you'll only earn 1 point per $1 with it outside of those brands. Many rewards cards offer more bonus categories, such as travel, groceries, gas, or dining.

Foreign transaction fee

The Navyist Rewards Mastercard® charges a 3% foreign transaction fee. It's not exactly a good travel card to begin with -- if you travel often, you're better off looking elsewhere. The foreign transaction fee just means that this definitely isn't a card to use anywhere outside the United States.

SEE TOP PICKS: Best Travel Credit Cards

Must redeem rewards at Gap Inc. brands

You can typically only redeem rewards from a store credit card at that store. You have more options with an Old Navy Credit Card, which at least lets you redeem points at any Gap Inc. brands. Regardless, this card's rewards are still limited, which is a serious drawback.

When you don't have anything you want to buy, you're stuck. You can either let your rewards sit around or pick something out solely to redeem your points, neither of which is a great option. That's why cash back cards are normally a better choice than store credit cards, because you can always use cash back.

READ MORE: Best Cash Back Credit Cards

We recommend a FICO® Score of 640 or higher to apply for an Old Navy Credit Card. A fair credit score is usually necessary to get approved for a store credit card with Old Navy.

When you apply, you're first considered for a Navyist Rewards Mastercard®. That has stricter requirements since it can be used outside of Gap Inc. brands. You'll likely need a good credit score (a FICO® Score of 670 or higher) to qualify for that card. If you're not approved, you'll then be considered for the Navyist Rewards Credit Card.

MORE OPTIONS: Best Credit Cards for Fair Credit

You shop at Old Navy at least every two to three months and you want to earn some points you can redeem for purchases there.

An Old Navy Credit Card will earn you a high rate on Old Navy spending, but that's about it. The Navyist Rewards Credit Card could also be useful for building credit if you don't have a high credit score yet. For the vast majority of consumers, and especially those with good credit who can qualify for the top credit cards, there are better options out there.

READ MORE: Expert Credit Card Reviews

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.