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Is a retail store credit card right for you? Here’s a basic rule that applies to all store credit cards: If you really like Store X, you might get value from the Store X Credit Card. But maybe not. Check out our card picks to learn more.
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Our Selection Criteria
Store cards are relatively easy to get, but that doesn’t mean you should apply for them whenever you see an offer. Like other credit cards, they’re powerful financial tools that could have significant effects on your finances and your credit.
Consider the following points before applying.
Fits your lifestyle: It should offer rewards and benefits with a merchant where you frequently shop.
Spending rewards: The best store credit cards provide rewards every time you make a purchase, rather than just giving you a one-time discount.
A relatively good offer: Does it offer more points or cash back rewards than you can get with a general-use rewards or cash back card?
Valuable extra benefits: The better store cards offer merchant-specific benefits that shoppers will find useful over and over again, like free clothing alterations.
Good customer support: Many store cards are known for having poor customer service, but some, like cards from the major issuers, are generally better than others.
Easy way to build credit: Since store cards generally have lower credit requirements, you can use them to improve your credit if you can’t qualify for better cards.
A store card might be a good fit if you consistently spend a lot of money with a particular store — as long as the card offer is relatively good, of course.
When used responsibly, store cards will let you earn rewards, take advantage of benefits, and build your credit at the same time. Just be sure to never carry a balance and make all your monthly payments on time.
Is a Retail Store Card Right for You?
Some merchants provide their own co-branded store credit cards to entice shoppers with discounts when checking out, or with offers to pay over time. These cards are often instant approval, so you can use them immediately for that purchase. It can be tempting to save a few bucks, but are these cards really worth it?
Pros of Store Credit Cards
Easy to get for people with poor or average credit scores, making them a decent option for building or rebuilding credit
May provide the most value for shopping with the co-branded merchant, compared to other credit cards
May offer unique perks or financing options with that merchant
That 5% off also applies to Starbucks stores in Targets, which is a pretty good deal for Starbucks compared to other cards. But take note that certain products and services won’t be eligible for the discount, like gift cards, prescriptions, and eye exams.
Free 2 day shipping on hundreds of thousands of items at Target.com.*
Early Access to products and promotions*
Exclusive Extras including special items and offers*
Starbucks discount on in-store locations – get everyday 5% savings when you pay with your REDcard*
Cartwheel – save 5-50% on hundreds of items in store & get everyday 5% savings when you pay with your REDcard*
Target Subscriptions – save 5% on everyday essentials delivered on your schedule when you subscribe, plus get everyday 5% savings when you pay with your REDcard*
Get everyday 5% savings on specialty gift cards when you pay with your REDcard*
Target Wallet, easy and fast checkout. Use Wallet in the Target app to save with Cartwheel and pay with REDcard by scanning your phone at check out in store.
*Some restrictions apply. See Target.com/redcard for benefits and program rules
It provides the most cash back for online Walmart purchases, only giving 2% for in-store purchases. But if you plan out your spending a bit, and take advantage of Walmart’s free shipping offers, you can get a lot of mileage from this card.
Spending Rewards
5% cash back at Walmart.com, including the Walmart App and Walmart Grocery Pickup and Delivery
2% cash back for:
Walmart purchases in stores
Walmart and Murphy USA Fuel Stations
Restaurants
Travel
1% cash back everywhere else
Introductory Bonus Offer
5% cash back for using Walmart Pay in stores for the first 12 months; $50 cash back for spending $300 in the first 3 months
With 5% back on everything you buy from the mega-retailer, plus categories for Whole Foods and some other common purchases, it’s hard to find a more rewarding offer.
Spending Rewards
5% cash back at:
Amazon
Whole Foods
2% cash back at:
Gas stations
Restaurants
Drugstores
1% cash back for every other purchase
Introductory Bonus Offer
$70 Amazon.com Gift Card instantly upon approval
You’ll need an Amazon Prime membership to use this card; otherwise you can get the Amazon Rewards Visa Signature Card, which is slightly less rewarding.
Visa Signature Luxury Hotel Collection: Perks at eligible hotels, including complimentary WiFi, room upgrades when available, a $25 food and beverage credit, and more
Visa Signature Concierge: Call any time for non-emergency assistance.
Shopping and travel protections: Including Purchase Protection, Extended Warranties, Baggage Delay Insurance, and more
Purchase and Balance Transfer APR: 14.24% to 22.24% Variable
Electronics stores don’t get a lot of love in terms of credit card bonus categories, so the My Best Buy® Visa® (Review) will be one of your best options.
Spending Rewards
5% back in rewards at Best Buy and BestBuy.com, or deferred financing for purchases over $199
10% back in rewards on your first day of purchases, within 14 days of opening the account
We recommend going with the 5% (or 6%) reward rate, rather than taking the deferred financing offers, which can backfire if you don’t pay them off correctly. But if you really need extra time to pay for some electronics or furniture, they could be appealing; just be sure to follow the repayment terms.
My Best Buy Elite status: Purchases will count toward your My Best Buy Elite status; higher status means extra rewards, free shipping, extended returns, and more
Purchase and Balance Transfer APR: 25.24% Variable (11.90% Fixed for select purchases)
Sam’s Club shoppers should consider the Sam’s Club® Mastercard® to get more back with every trip.
You’ll only earn 1% back at Sam’s Club, but there are excellent reward rates for gas, dining, and travel. The broad appeal makes it handy for more than just wholesale clubs, giving you a card to use for other common purchases.
Spending Rewards
5% cash back for Gas in the U.S. and Puerto Rico, including gas at Sam’s Club (up to $6,000 spent per year)
3% cash back for:
Dining
Travel
1% cash back on all other purchases
Introductory Bonus
$45 statement credit when you spend $45 or more at samsclub.com, the same day you open your account online
If you’re already shopping at Costco you should definitely consider getting the Costco Anywhere Visa® Card by Citi (Review). You’ll need a Costco membership to apply.
Spending Rewards
4% cash back on eligible gas worldwide, including gas at Costco (up to $7,000 spent annually)
3% cash back for:
Restaurants
Travel (including Costco Travel)
2% cash back on all other purchases from Costco and Costco.com
1% cash back on all other purchases
The 2% back at Costco is not too bad, but not exceptional either. This store card might be as or more useful for the other bonus categories; it’s actually one of the better cards for earning rewards on gas.
The Amazon Prime Rewards Visa Signature Card (Review) is an easy way to get 5% back for everything you buy on Amazon. Since Amazon has one of the broadest product ranges of any marketplace ever, this is probably the most versatile store card you can get.
It has no annual fee but requires an Amazon Prime membership, which currently costs $119 per year ($59 for an Amazon Prime Student membership). There are also a few interesting features you won’t usually get with store cards.
Department stores can be easy (but tempting) one-stop shopping trips. Most offer co-branded cards to help you get more out of every trip; JCPenney and the JCPenney Credit Card (Review) are no exception.
Spending Rewards
1X point per dollar spent at JCPenney
Introductory Bonus Offer
15% or 5% off select purchases on the day you open the card
Just 1X point per dollar, you might ask? Well, those points are worth 5 cents each, giving you a solid 5% cash back equivalent at JCPenney. And that could take a nice dent out of some clothes, pots and pans, or jewelry — whatever you might need.
Most wholesale club credit cards don’t offer very high rewards for the club in question, but the BJ’s Perks Elite™ Mastercard breaks that mold in a powerful way.
Not only do you earn 5% back at BJ’s, a nice discount on top of prices that are already pretty good, you’ll also get a significant discount on gas at BJ’s — a rare feature you won’t usually get with credit cards.
Spending Rewards
Save 10 cents per gallon on BJ’s gas
5% cash back for eligible purchases at BJ’s and BJs.com
You’ll earn 20X points per dollar at Express, which translates to an incredible 12% cash back equivalent for A-List credit cardholders. If you’re not on the A-List you’ll still wind up with an 8% cash back equivalent — still better than most competing clothing store cards.
Spending Rewards
20X points per dollar at Express, both in-store and online
15X points per dollar spent at American Eagle and Aerie, in-store and online
5X points per dollar spent on all other purchases
20% off your first purchase in-store at American Eagle or Aerie
Perks: Free standard shipping; 20% off birthday coupon; buy five bras or jeans, get one free; personal shopping day coupon; six cardholder events per year
Home improvement projects can be exciting, but they can also be cause for a headache. Get a little peace of mind with the Lowe’s Advantage Credit Card (Review), which can take a bite out of your project spending or give you some extra time to pay.
Spending Rewards
Either:
5% off OR
Special financing for purchases of $299 or more
Just be careful with the special financing offers. If you don’t pay off the balance in full by the end of the offer period, or miss a payment, you can be charged interest for the full balance. And that would be an extra headache you don’t need.
Time for a new couch? You may be able to adjust your budget up a bit if you go with the Pottery Barn Credit Card, because you’ll get 10% back in rewards on your eligible purchases.
Spending Rewards
Either:
10% back in rewards at Pottery Barn, Pottery Barn Bed and Bath, Pottery Barn Kids, and PBteen stores, catalogs, and online
Special financing for purchases of $750 or more
You could also choose special deferred-interest financing for big purchases, if you need some extra time to pay. But watch out, because you could be charged interest for the full purchase if you don’t repay the balance correctly.
Visa Signature Luxury Hotel Collection: Perks at eligible hotels, including complimentary WiFi, room upgrades when available, a $25 food and beverage credit, and more
Visa Signature Concierge: Call any time for non-emergency assistance.
Shopping and travel protections: Including Purchase Protection, Extended Warranties, Baggage Delay Insurance, and more
Purchase and Balance Transfer APR: 14.24% to 22.24% Variable
Cash back can be redeemed for statement credits or at Amazon.com checkout
Earn 5% back at Amazon.com and Whole Foods Market
Earn 2% back at gas stations, restaurants, and drugstores
Earn 1% back on all other purchases
Get a $70 Amazon.com Gift Card instantly upon credit card approval
More Retail Store Credit Cards
There are hundreds of retail credit cards, and we’ve only listed our best card picks for certain categories. If your favorite store isn’t listed above, it might still offer a credit card — check out its website or call to find out.
Here are a couple big collections, from the largest issuers of store credit cards:
Store credit cards can provide valuable cash back and benefits, but for the most part they’re only useful at their co-branded stores. For some more flexible card options, offering rewards for a variety of different purchases, check out our picks for the Best Rewards Credit Cards and Best Cash Back Credit Cards.
What Are the Best Store Credit Cards?
There is no “best” retail store card, just like there is no “best” store. A better question might be: What’s your favorite store, and does it offer a credit card?
But here are some of our favorite store credit cards, co-branded with big names that just about anyone could find useful:
Many store cards are limited in some ways, like where you can use them or how you can redeem rewards. And they typically have worse terms (like higher APRs) than the normal rewards cards you can get from big banks.
There are two basic types of store credit card, which are sometimes referred to as:
Open-loop cards: These cards can be used anywhere, and have the Visa or Mastercard logo in the bottom-right (sometimes American Express or Discover).
Closed-loop cards:These cards can only be used with the co-branded merchant, and sometimes with its affiliates. There is no Visa or Mastercard logo.
Open-loop cards are obviously more useful, because you can use them anywhere credit cards are accepted. But you might still find a closed-loop card useful if it has some features that you value highly.
Store credit cards are pretty much like any regular credit card, except for the open-loop and closed-loop distinction. You can usually apply for them either in-store or online. You don’t always need excellent credit scores— on the contrary, many store cards are attainable for people with average or even poor credit scores.
Retail store credit cards are actually a fairly good option for building your credit scores if you’re a huge fan of a certain store. But you should consider other options if you’re planning to carry a balance, as their interest rates can get pretty high.
If your card doesn’t provide good rewards at a particular store and you don’t have the store’s co-branded card, you may still be able to earn decent rewards in a less direct way. Use a credit card at a different store to buy a gift card for that first store, earning rewards on the gift card purchase instead. Then you can use that gift card to shop at the first store. But watch out, because some cards have terms that prevent you from earning rewards on gift cards.
Do Store Credit Cards Build Credit?
In most cases, yes — just like any other credit card, a store credit card can typically help you build up your credit and improve your credit scores.
That’s because store cards usually report your card activity to the three major credit bureaus — Equifax, Experian, and TransUnion.
Many store cards are issued by Synchrony or Comenity, and both of those issuers report to all three major bureaus. If you’re not sure how a particular store card reports activity, you can contact the issuer to ask.
How Do I Apply for a Store Credit Card?
You can usually apply for store credit cards the same way you’d apply for any other credit card — just fill out the application online.
But in many cases, you can also apply for a store’s credit card in the store itself. Just ask an associate. Or, you might be offered (or pressured to get) a store card while you’re checking out, with the powerful lure of a one-time discount or coupon.
We typically recommend not applying for store credit cards as you check out, in large part because credit card decisions shouldn’t be made impulsively. Credit cards are significant financial tools, and you shouldn’t get one just to save a few bucks on a purchase.
But store cards in general are known for being relatively easy to qualify for, compared to typical rewards cards. So you may find that you qualify for store cards when others have denied you.