Reviewed by Evelyn WaughHow Do Retail Credit Cards Affect Your Credit Score?
Reviewed by Evelyn Waugh
Quick Answer
- Retail credit cards affect your credit scores the same way other credit cards do. Potential impacts depend on how you manage the card.
- Responsible retail card use can help you build credit history. On the other hand, missed payments and high balances hurt your credit.
- Consider traditional credit cards, too, which may offer better rates and perks.
You stand at the checkout counter, head spinning as your new clothes are rung up and your total climbs higher and higher. "Would you like to get 20% off by opening a credit card with us?" the salesperson asks. "Save 20%? Sign me up," you might think.
But before you complete that credit card application, consider the potential effect it may have on your credit score, directly and indirectly. Retail credit cards can affect your credit score positively or negatively, depending on how you use them.
It's not wise to apply for new credit in the heat of a shopping frenzy, especially if the lure of new credit would encourage you to make a purchase you wouldn't otherwise. To make a smart decision about applying for a retail credit card, take a deep breath, step away from the checkout line and consider your shopping habits, your ability to manage debt and pay bills on time, and what the card has to offer.
What Is a Retail Credit Card?
Retail credit cards are issued by retail stores, and most can only be used at the retailer that issued it. Often, a retail credit card will have rewards programs that encourages you to patronize its issuing retailer. Some retailers offer co-branded Visa or American Express credit cards that can be used like a traditional credit card.
Both types of store credit cards usually charge higher interest rates than regular credit cards. Retail cards also tend to charge higher fees for things like cash advances or foreign transactions, as well as higher penalties for late payments. If you have good credit, you can easily find a credit card with a lower APR than you can get from a store card.
Do Store Cards Help Credit?
Store credit cards can either help or hurt your credit depending on your credit history, credit score and how you use the card. If you have poor credit or don't have much of a credit history, a retail credit card can be a useful tool for building or rebuilding credit. Because these cards typically have less stringent approval criteria, they're generally easier to get than a traditional credit card if you have a lower credit score or a thin credit file. Like with any credit card, if you use your store credit card to make a small purchase every month and pay it off in full and on time, you can gradually improve your credit score.
If this is your first credit card, you can graduate to a traditional credit card after you've built up some credit history. Be cautious about closing your retail card, however, as closing it will reduce your total credit limit and possibly increase your credit utilization ratio. Credit utilization measures the amount of credit card debt you're carrying relative to your overall credit limit, and it's the second most important factor in your credit score. A ratio above 30% will hurt your scores, but the lower, the better.
To keep a retail credit card from hurting your credit score, there are a few things you should know:
- Choose carefully: Applying for a retail credit card generates a hard inquiry on your credit report, which can have a negative effect on your credit score. If you only apply for one store credit card, this hit will be temporary. However, applying for multiple credit cards all at once can cause a more significant dip in your credit score, so limit yourself to one retailer.
- Watch your credit usage: Retail store credit cards typically have lower credit limits than other credit cards. Although this might seem like a good thing (since it keeps you from getting into too much debt), it can work against you if you carry a high balance and a high credit utilization ratio.
- Understand promotional offers: Many store credit cards offer deferred interest financing for six to 12 months on large purchases, such as furniture. While this sounds appealing, it's important to understand that deferred interest financing isn't the same as an introductory 0% APR offer. With a 0% APR offer, you don't accrue any interest during the promotional period; interest on your balance only begins to accrue after the promotional period is over. With deferred interest financing, interest starts accruing on your balance beginning on the date of purchase. If you don't pay off your entire balance before the end of the promotional period, all of that deferred interest will come due at once.
- Stay on top of your bill: If you rarely shop at a specific retailer, it's easy to miss the statement or forget to pay the bill on time. Unlike utilities, car payments, rent and other bills you pay every single month, a retail credit card bill can easily slip through the cracks. At best, this might mean a late fee; at worst, it could mean a chunk of deferred interest coming due.
- Resist the urge to buy more: Finally, if you're a shopaholic or a bargain hunter, having a retail credit card can easily entice you to buy things you don't really need. Retailers know exactly how to push a cardholder's buttons with endless offers, coupons, discounts, extra rewards points, early access to sales and more. The constant temptation can weaken your willpower and spur overspending.
If you want to earn rewards points or cash back on your store purchases, a general-use credit card that offers rewards can offer the same benefits with more flexibility. If you just want to save money, search online for a discount code—you'll probably find one equivalent to the savings from a store card.
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Blue Cash Everyday® Card from American Express
Intro bonus:
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You may be eligible for as high as $200 cash back after spending $2,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 15 months
Ongoing APR:19.49%-28.49% Variable
Rewards:
1% - 3% (cash back)
Earn 3% cash back at U.S. supermarkets, 3% cash back on U.S. online retail purchases, 3% cash back at U.S. gas stations, on eligible purchases for each category on up to $6,000 per year in purchases (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
Annual Fee:$0
Credit One Bank® Secured Card
Ongoing APR:29.74% Variable
Rewards:
1% (cash back)
Earn 1% cash back rewards on eligible gas, grocery purchases and mobile phone, internet, cable and satellite TV services. Terms apply.
Annual Fee:$0
Costco Anywhere Visa® Card by Citi
Ongoing APR:18.74% - 26.74% (Variable)
Rewards:
1% - 5% (cash back)
Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter. 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel. 2% cash back on all other purchases from Costco and Costco.com. 1% cash back on all other purchases.
Annual Fee:$0
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:
1% (cash back)
Cash back will be awarded as points redeemable for a statement credit
Annual Fee:$75*
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:
1% (cash back)
Cash back will be awarded as points redeemable for a statement credit
Annual Fee:$75 first year; then $99/year
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:
1% (cash back)
Cash back will be awarded as points redeemable for a statement credit
Annual Fee:$39*
Hilton Honors American Express Aspire Card
Intro bonus:
200,000 Points
Best Points Offer Yet! Earn 200,000 Hilton Honors Bonus Points with the Hilton Honors American Express Aspire Card after you spend $6,000 in purchases on the Card within your first 6 months of Card Membership. Offer ends 01/13/2027.
Ongoing APR:19.49%-28.49% Variable
Rewards:
3x - 14x (Points per dollar)
Earn 14X Hilton Honors Bonus Points when you make eligible purchases on your Card directly with hotels and resorts within the Hilton portfolio. Card Members can earn 7X Points on purchases of Flights booked directly with airlines or flights booked through American Express Travel, Car rentals purchased directly from select car rental companies, and purchases at U.S. Restaurants. Card Members can earn 3X Points on all other eligible purchases.
Annual Fee:$550
Bank of America® Premium Rewards® credit card
Intro bonus:
60,000 Points
Receive 60,000 online bonus points - a $600 value - after you make at least $4,000 in purchases in the first 90 days of account opening.
Ongoing APR:19.49% - 27.49% Variable
Rewards:
1.5x - 2x (Points per dollar)
2 points for every $1 spent on travel and dining purchases, 1.5 points for every $1 spent on all other purchases
Annual Fee:$95
See all our best rewards credit cards for 2026.
What Credit Score Do You Need for a Retail Credit Card?
Store-only credit cards are generally easier to get than traditional cards, even if you only have fair credit. Retailers know their cardholders shop at their stores more often, so they have an incentive to give you a card. As previously mentioned, retail credit cards tend to have higher APRs and lower credit limits than traditional credit cards, which reduces the risk retailers take by extending credit to those with less-than-stellar credit scores.
If you're trying to get a co-branded store card, you'll generally need a good credit score to qualify. That's because co-branded cards are issued by the partner bank rather than the retailer. Even if you apply for a co-branded card and can't get approved, you may still be able to get a store-only card from the same retailer.
Is a Store Credit Card Right for You?
Depending on how you use it, a retail credit card can help or hurt your credit score. If you're trying to rebuild bad credit or build a credit history for the first time, a retail credit card may be your only option for getting credit. Used wisely, it can be a stepping-stone to a traditional credit card that has better terms and a higher credit limit.
If you have good credit, however, there are plenty of traditional credit cards that offer similar rewards to store cards but with lower interest rates and fees. To see what types of credit cards you can qualify for, start by checking your credit scores.
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About the author
Karen Axelton
Karen Axelton is Experian’s in-house senior personal finance writer. She has over 20 years of experience as a journalist and has written or ghostwritten content for a variety of financial services companies.
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