Barclays Old Navy Encore Mastercard Review: Dedicated Rewards for Gap Inc. Loyalists
Is the Old Navy Encore Mastercard a smart choice for your wallet? This review explores its generous Gap Inc. rewards against a high APR, revealing if it's truly worth it for loyal shoppers who pay in full.
| Annual Fee | $0.00 |
| Sign-up Bonus | 30% off first Old Navy purchase |
| Rewards Rate | 1x-5x Points on purchases |
| Regular APR | APR for purchases 33.49% This APR will vary with the market based on the Prime Rate. APR for balance transfers 33.49%, when using your Mastercard. This APR will vary with the market based on the Prime Rate. APR for cash advances 33.49%, 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 loyal shoppers of Old Navy and its sister brands, the Old Navy Encore Mastercard offers a compelling way to earn rewards on everyday spending. The card's main appeal lies in its generous rewards structure: you'll earn an impressive 5 points per dollar on purchases across the Gap Inc. family (including Gap, Banana Republic, and Athleta) and 3 points per dollar at other eligible apparel stores. All other purchases earn a standard 1 point per dollar. With a $0 annual fee and a sign-up bonus offering 30% off your first Old Navy purchase, it's an affordable tool for frequent customers to maximize their savings.
However, the card's strengths are highly specific and come with a major caveat. The rewards you earn are most valuable when redeemed for purchases within the Gap Inc. ecosystem, limiting their flexibility. More importantly, the card carries an exceptionally high regular APR. This makes it a risky choice for anyone who might carry a balance from month to month, as interest charges can quickly erase the value of any rewards you've earned.
Ultimately, the Old Navy Encore Mastercard is best suited for brand loyalists who are committed to paying their bill in full every month. If you frequently shop at Old Navy or its partner stores and can treat this card purely as a payment tool to earn rewards without incurring interest, it can be a worthwhile addition to your wallet. For everyone else, a general-purpose rewards card with a lower APR and more flexible redemption options would be a much safer and more valuable choice.
Pros & Cons
What's great
- No annual fee
- Sign-up discount on first purchase
- High rewards rate for purchases at specific retailers
- Rewards on all other purchases
- Additional retail-specific perks
Things to consider
- High regular APR
- No introductory APR period
- High balance transfer fee
- Rewards are most valuable at specific brands
Benefits
Strong Rewards for Brand Loyalists
The Old Navy Encore Mastercard is designed to reward frequent shoppers within the Gap Inc. family of brands (Old Navy, Gap, Banana Republic, and Athleta). Its primary benefit is an excellent rewards rate of 5 points per dollar spent at these stores, which is equivalent to a 5% return. This is a high rate for retail spending that can add up quickly for those who regularly buy clothing and accessories from these brands. The card also offers a respectable 3 points per dollar (a 3% return) on all other eligible apparel purchases, making it a solid choice for your entire wardrobe budget. All other purchases earn a standard 1 point per dollar.
Immediate Discount and Shopper Perks
New cardholders are greeted with a straightforward and easy-to-earn sign-up bonus: 30% off their first purchase at Old Navy. While the value depends entirely on how much you spend, it can be quite lucrative for a large shopping trip and requires no minimum spending threshold to activate. Beyond the initial discount, the card's best feature is its $0 annual fee, allowing you to access its benefits without any yearly cost. Cardholders also receive perks tailored to the shopping experience, including free shipping on online orders of $35 or more and early access to special events and sales, enhancing the value for dedicated customers.
Drawbacks
The most significant drawback of the Old Navy Encore Mastercard is its exceptionally high regular APR of 33.49%. This rate applies to purchases, balance transfers, and cash advances from day one, as the card offers no introductory 0% APR period. For anyone who might carry a balance, even occasionally, the interest charges will accumulate rapidly and can quickly negate the value of any rewards earned. This makes the card a potentially costly choice if you don't pay your bill in full every month.
While the card advertises a high earning rate of "5X points" at Gap Inc. brands, the rewards program is less generous than it appears. Points have a redemption value of 500 points for a $1 reward, which means the 5X rate is effectively a 1% return on spending, not 5%. This is a standard return that can be easily matched or beaten by general-purpose cash-back cards. Furthermore, rewards can only be redeemed within the Gap Inc. family of brands, offering no flexibility for cash back, statement credits, or travel.
Potential applicants should also be aware of the card's other limitations. The sign-up bonus is a 30% discount on your first purchase, which may offer less value than a standard cash bonus, depending on your initial spending. Additionally, the card carries a high balance transfer fee of 5%, making it a poor option for anyone looking to consolidate debt from other high-interest cards.
Decision Guidance
This card is a powerful tool for frequent shoppers at Old Navy and its sister brands who are disciplined about paying their balance in full each month. The high rewards rate on apparel can generate significant savings, but this benefit is completely erased by the extremely high APR if you carry a balance. Therefore, it's only a smart choice for brand loyalists who will never incur interest charges; all other users would be better served by a general rewards card with a lower interest rate.
Summary
The Old Navy Encore Mastercard is a powerful tool for brand loyalists who can pay their balance in full each month, offering accelerated rewards on purchases at Old Navy and its sister stores. However, the card's exceptionally high interest rate is a significant drawback that can quickly erase the value of any rewards if you carry a balance. This makes it a risky choice for anyone but the most disciplined, frequent shoppers of the Gap Inc. family of brands.