Barclays Gap Encore Mastercard Review: Earn Rewards at Gap Family Brands
If you're a loyal Gap brand shopper, the Gap Encore Mastercard could be rewarding, with 5x points on purchases at Gap, Old Navy, and more. But with a high APR, it's only worth it if you pay your balance in full each month!
| Annual Fee | $0.00 |
| Sign-up Bonus | 20% off first Gap purchase |
| Rewards Rate | 1X-5X points on all purchases |
| Regular APR | APR for purchases 33.24% This APR will vary with the market based on the Prime Rate. APR for balance transfers 33.24%, when using your Mastercard. This APR will vary with the market based on the Prime Rate. APR for cash advances 33.24%, when using your Mastercard. This APR will vary with the market based on the Prime Rate. |
| Other Fees | Balance transfer fee Either $5 or 5% of the amount of each transfer, whichever is greater, when using your Mastercard. |
Overview
For dedicated shoppers of the Gap Inc. family of brands, the Gap Encore Mastercard offers a compelling way to earn rewards on clothing purchases without paying an annual fee. The card's main appeal is its rewards structure: you'll earn an impressive 5 points per dollar spent at Gap, Old Navy, Banana Republic, and Athleta, plus a solid 3 points per dollar at other eligible apparel stores. As an initial perk, new cardholders receive 20% off their first purchase at Gap, offering instant savings.
Unlike a traditional store card, the Gap Encore is a Mastercard, meaning you can use it anywhere and earn 1 point per dollar on all other purchases. However, the card comes with a significant catch: an extremely high regular APR. This makes it a poor choice for anyone who might carry a balance, as the interest charges could easily outweigh the value of the rewards you earn. There are also fees for balance transfers, further limiting its flexibility.
Ultimately, this card is tailor-made for one type of person: the budget-conscious fashion enthusiast who frequently shops at Gap Inc. stores and pays their credit card bill in full every single month. If you fit this description, the card can be a rewarding tool. For those who carry a balance or prefer more flexible rewards like cash back, a general-purpose rewards card would be a much better fit.
Pros & Cons
What's great
- No annual fee
- Cashback on purchases
- High rewards rate for specific retail categories
- Sign-up bonus
- Complimentary FICO score access
- Fraud protection
Things to consider
- High regular APR
- No intro APR period
- Limited rewards categories
- High balance transfer fee
Benefits
Rewards for Fashion Shoppers
The Gap Encore Mastercard is designed for those who frequently shop at the Gap Inc. family of brands (including Old Navy, Banana Republic, and Athleta). Cardholders earn an impressive-sounding 5 points per dollar on these purchases. Uniquely for a store card, it also offers an elevated 3 points per dollar at all other eligible retail apparel brands, with 1 point per dollar on everything else. While these multipliers seem high, it's crucial to understand the redemption value: 500 points equal a $1 reward. This translates to an effective cash back rate of 1% at Gap brands, 0.6% on other apparel, and 0.2% everywhere else—rates that are significantly less competitive than what many general-purpose rewards cards offer.
Store-Specific Perks and Bonus
As a welcome offer, new cardholders receive a straightforward 20% discount on their first purchase at Gap. The value of this bonus depends entirely on the size of that initial shopping trip. Beyond the rewards, the card's main appeal lies in its brand-specific perks. You'll get free shipping on online orders of $35 or more, plus early access to special sales and events. Best of all, these benefits come with no annual fee, making it a low-cost way for loyal Gap Inc. customers to unlock extra savings and conveniences, provided they pay their balance in full to avoid the high APR.
Drawbacks
The biggest drawback of the Gap Encore Mastercard is its exceptionally high ongoing APR. At 33.24% for purchases, balance transfers, and cash advances, it is one of the more expensive rates on the market. This makes the card a very poor choice for anyone who might carry a balance from one month to the next, as interest charges would quickly overwhelm the value of any rewards earned. The card also lacks any introductory 0% APR offers, providing no relief from this high rate.
While the card advertises earning "5X points" at Gap Inc. brands, the rewards structure is less valuable than it appears. Points have a low redemption value, with 500 points equaling just a $1 reward. This means the 5X points rate is effectively a 1% return on Gap purchases, and the 1X rate on all other spending is a meager 0.2% return. Many flat-rate cash-back cards offer a better value on all purchases without being tied to specific stores.
Finally, the card's benefits are narrowly focused on Gap shoppers. The sign-up bonus is a one-time 20% discount on your first purchase, which may not be as valuable as a standard cash or points bonus from other cards. Furthermore, the high 5% balance transfer fee makes it an unattractive option for consolidating debt. Ultimately, this card only makes sense for Gap loyalists who are certain they can pay their balance in full every single month.
Decision Guidance
The Gap Encore Mastercard is an excellent choice for frequent shoppers of Gap, Old Navy, and its sister brands, but only if you are committed to paying your balance in full each month. The high rewards on apparel are easily wiped out by the card's steep APR, making it a risky option for anyone who might carry debt. If your spending isn't concentrated on these brands or you value reward flexibility, a general-purpose cash back card is a safer bet.
Summary
The Gap Encore Mastercard is a powerhouse for loyal shoppers of Gap Inc. brands, offering exceptional rewards on apparel with no annual fee. However, its extremely high APR makes it a hazardous choice for anyone who might carry a balance, as interest costs will quickly nullify the value of your rewards. This card is only a good fit for brand devotees who are disciplined enough to pay their statement in full every single month.