How the Victoria's Secret Credit Card Works: Benefits and Rewards (LB)

Victoria's Secret, a subsidiary of L Brands Inc. (NYSE: LB), has its own branded credit card called the Angel card. Here is a discussion of the card's benefits, drawbacks and the type of consumer for whom the credit card is best suited.

The Victoria’s Secret credit card is issued by Comenity Bank and can be used for purchases online at VictoriasSecret.com, in a Victoria's Secret retail location, or in a PINK store. While the card cannot be used in any other stores, it rewards cardholders with points that accrue and can be used for money off of future purchases. The only exception to this rule is shopping in-store at Bath & Body Works. Cardholders can use their Angel credit card at this L Brand Inc.-owned store, but won't earn any reward points on purchases.

Victoria’s Secret cardholders earn rewards according to the value of their purchases, both online and in-store. Depending on the amount of money spent on a rolling 12-month period, there are three different reward tiers: Angel, Angel VIP, and Angel Forever. All cardholders earn one point for each $1 of net new purchases on their Victoria's Secret credit card. Once a cardholder earns 250 points, they get a $10 or $15 Angel Reward (depending on the cardholder's Angel tier) which counts for $10 or $15 off a future Victoria's Secret purchase.

The first tier of the Victoria's Secret credit card is the Angel card. Angel cardholders earn triple points on all bra purchases, free shipping on online purchases that include bras, and one triple-point day of their choice. In addition, Angel cardholders get a birthday gift each year the card is active.

The second tier of the Victoria's Secret credit card is the Angel VIP card. Cardholders qualify for this tier by earning 500 points on their Angel card in a rolling 12-month period. Angel VIP cardholders accrue points at the same level and rate as an Angel cardholder, but they accrue additional benefits: two triple-point days of their choice and free gifts at events throughout the year.

The top tier of the Victoria's Secret credit card is the Angel Forever card. To qualify for this card, the cardholder must earn 1,0000 points on their Angel or Angel VIP credit card within a rolling 12-month period. Additional perks of being an Angel Forever cardholder include three triple-point days of the cardholder's choice and an annual thank-you gift. However, there are some caveats to these rewards. Triple-point days must be selected within 90 days of making an Angel card purchase by calling Victoria's Secret, and to qualify for free shipping with a bra purchase, the customer must use a code.

The primary benefit of having a Victoria's Secret card is that it accrues points that translate into money off of future orders, but there are some other perks, such as gifts. Therefore, this card is best suited for those who already spend money at Victoria's Secret. Consumers who do not shop at Victoria's Secret will get no use out of this credit card.

The Victoria's Secret credit card is used specifically to purchase Victoria's Secret goods, so it has no direct competitor. Competitors in terms of lingerie stores include such major department stores as Nordstrom Inc. (NYSE: JWN) and Macy's Inc. (NYSE: M). Both of these and most other department stores offer in-store credit cards.

The Victoria’s Secret credit card has a high interest rate. In January 2019, Comenity Bank and Victoria's Secret advertised the annual percentage rate (APR) 26.99% but noted that the rate can vary with the market based on the prime rate. No interest is paid if a cardholder pays off her entire balance by the due date each month, and the payment due date is at least 25 days after the close of each billing cycle. The card has no annual fee, but there are fees for late and returned payments. If a cardholder is late paying her bill, she should expect a fee of up to $37. Fees on returned payments can go as high as $25. Of course, as with any credit card, late payments made on a Victoria's Secret card can damage the cardholder's credit score. Cardholders should thoroughly read their cardholder agreements for full details.

Not everyone can apply for a Victoria’s Secret credit card. Applicants must be at least 18 years of age, have a valid government-issued photo ID and U.S. Social Security Number, and must be a resident of the United States with a valid mailing address. Comenity Bank verifies personal information and obtains a copy of a consumer's credit report when making its decision to extend credit to a potential cardholder. The credit limit on the card depends on the applicant's personal credit history and finances.