By Bev O'SheaPros and Cons of Store Credit Cards
By Bev O'Shea
Quick Answer
Store credit cards can offer discounts, special financing, free shipping or other perks, and they can be a good way to build credit. But they also tend to come with low credit limits, high interest rates and financing offers with a big catch.
Store credit cards allow you to earn rewards and get special perks at a retailer, and they can be easier to qualify for than a regular rewards credit card. But they also tend to charge higher interest rates than other credit cards, and their offers of "interest-free" payment plans can have some gotchas to be careful of.
Here's what to consider when you're deciding whether a store credit card is a good fit for you.
Pros of Store Credit Cards
For frequent shoppers, a store credit card can be useful and help you get more from your money.
You Can Earn Rewards
Some store credit cards offer tiers of rewards so that the more you spend, the more perks or discounts you qualify for. If a retail credit card offers points for purchases, you may be able to convert those to cash. For example, you might earn rewards worth between 1% and 5% of your spending depending on your reward tier. Some retailers have certain days when you can get higher rewards for your spending on the card.
Best rewards cards of 2026
Compare cards from our partners that earn points, cash back or miles on everyday spending.
Offers from our partners
Citi Double Cash® Card
Intro APR:0% for 18 months on Balance Transfers
Ongoing APR:17.49% - 27.49% (Variable)
Rewards:2% (cash back)
Annual Fee:$0
Blue Cash Everyday® Card from American Express
Intro bonus: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)
Annual Fee:$0
Discover it® Chrome
Intro bonus:INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards.
Intro APR:0% intro APR for 6 Months on Purchases and 0% intro APR for 18 Months on Balance Transfers
Ongoing APR:17.49% - 26.49% Variable APR
Rewards:1% - 2% (cash back)
Annual Fee:$0
The opensky® Secured Visa® Credit Card
Ongoing APR:23.89% Variable
Rewards:10% (cash back)
Annual Fee:$35
Credit One Bank American Express® Card for Rebuilding Credit
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$75 First year. $99 thereafter, billed monthly at $8.25
Blue Cash Preferred® Card from American Express
Intro bonus:You may be eligible for as high as $300 cash back after spending $3,000 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 12 months
Ongoing APR:19.49%-28.49% Variable
Rewards:1% - 6% (cash back)
Annual Fee:$0 intro annual fee for the first year, then $95.
American Airlines AAdvantage® MileUp® Card
Intro APR:0% for 15 months on Balance Transfers
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:2x (Miles per dollar)
Annual Fee:$0
Citi Strata Premier® Card
Intro bonus:Earn 60,000 bonus ThankYou® Points after spending $4,000 in the first 3 months of account opening, redeemable for $600 in gift cards or travel rewards at thankyou.com.
Ongoing APR:19.49% - 27.49% (Variable)
Rewards:1x - 10x (Points per dollar)
Annual Fee:$95
Costco Anywhere Visa® Card by Citi
Ongoing APR:18.74% - 26.74% (Variable)
Rewards:1% - 5% (cash back)
Annual Fee:$0
American Express® Gold Card
Intro bonus:You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.
Ongoing APR:See Pay Over Time APR
Rewards:1x - 4x (Points per dollar)
Annual Fee:$325
First Latitude Secured Mastercard® Cash Back Rewards
Ongoing APR:27.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$0
Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:2x (Miles per dollar)
Annual Fee:$99, waived for first 12 months
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$75*
Citi® / AAdvantage® Globe™ Mastercard®
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:1x - 6x (Miles per dollar)
Annual Fee:$350
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:Introductory fee of $75 for the first year. After that, $99 annually.*
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$39*
Credit One Bank® Platinum X5 Visa® Metal Card
Ongoing APR:29.74% Variable
Rewards:1% - 5% (cash back)
Annual Fee:$95
First Progress Prestige Secured Mastercard® Cash Back Rewards
Ongoing APR:13.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$49
First Progress Select Secured Mastercard® Cash Back Rewards
Ongoing APR:17.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$39
Credit One Bank® Premier American Express® Credit Card
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$39
Marriott Bonvoy Brilliant® American Express® Card
Intro bonus:Earn 200,000 Marriott Bonvoy® bonus points after you use your new Card to make $6,000 in purchases within the first 6 months of Card Membership. Offer Ends 5/13/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:2x - 6x (Points per dollar)
Annual Fee:$650
Discover it® Miles
Intro bonus:UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers. Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match. You could turn 35,000 Miles into 70,000 Miles.
Intro APR:0% intro APR for 15 months on Purchases and Balance Transfers
Ongoing APR:17.49% - 26.49% Variable APR
Rewards:1.5x (Miles per dollar)
Annual Fee:$0
Delta SkyMiles® Gold American Express Card
Intro bonus:Earn 70,000 Bonus Miles after you spend $3,000 in purchases with your new Card, and an additional 20,000 bonus miles after you make an additional $2,000 in purchases on the Card, both within your first 6 months. Ends 04/01/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 2x (Miles per dollar)
Annual Fee:$0 introductory annual fee for the first year, then $150.
Credit One Bank® Premier American Express® Unlimited Rewards Card
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$0
Hilton Honors American Express Surpass® Card
Intro bonus:Earn 130,000 Bonus Points plus a Free Night Reward after you spend $3,000 in purchases on the Card in the first 6 months of Card Membership. Offer Ends 4/15/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:3x - 12x (Points per dollar)
Annual Fee:$150
Delta SkyMiles® Blue American Express Card
Intro bonus:Earn 10,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 6 months.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 2x (Miles per dollar)
Annual Fee:$0
One Key™ Card
Intro bonus:Limited Time Offer: Earn $300 in OneKeyCash™ after you spend $1,000 on purchases in the first 3 months. OneKeyCash is not redeemable for cash and can only be used on Expedia®, Hotels.com® and Vrbo®. To learn more, please refer to the One Key Terms and Conditions at www.expedia.com/one-key-terms.
Ongoing APR:18.49%, 23.49%, or 28.49% Variable APR
Rewards:1.5x - 3x (Points per dollar)
Annual Fee:$0
One Key+™ Card
Intro bonus:Earn $350 in OneKeyCash™ after you spend $3,000 on purchases in the first 3 months. OneKeyCash is not redeemable for cash and can only be used on Expedia®, Hotels.com® and Vrbo®. To learn more, please refer to the One Key Terms and Conditions at www.expedia.com/one-key-terms.
Ongoing APR:18.49%, 23.49%, or 28.49% Variable APR
Rewards:2x - 3x (Points per dollar)
Annual Fee:$99
Avant® Cashback Rewards Mastercard® - With A Higher Credit Limit
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$125*
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$0*
See all our best rewards credit cards for 2026.
You Can Save Money on Products or Get Free Shipping
Having a store credit card can give you access to special perks such as discounts or free shipping. If you shop at a certain retailer frequently, using a store credit card can actually save you money if it doesn't tempt you to buy things you would not have otherwise.
You May Qualify Even Without Stellar Credit
You may be able to get a store credit card with a lower credit score than the threshold required for a general-purpose credit card. Rewards cards in particular often require even higher credit scores.
You Can Use the Cards to Build Credit
Because store credit cards can be easier to qualify for, they can be a good way to get started building or rebuilding credit. As long as the card issuer reports credit activity to the credit bureaus, you can start building good credit by paying on time every time. It's best to pay the full balance every month.
You Can Stretch Out Payments Without Paying Interest
A store may offer a deal where paying off a balance in a certain amount of time can be done interest-free. Those offers can save you money, but be careful of the fine print (more about that below).
Cons of Store Credit Cards
Store credit cards have some distinct drawbacks as well.
They Typically Have High Interest Rates
If you carry a balance, the interest rates on store credit cards are typically high. Some interest rates are higher than 30%. In August 2022, consumer credit cards had an average interest rate slightly higher than 18%, according to the Federal Reserve.
They May Charge Deferred Interest
Offers of a payment plan with no interest, giving you months to spread out big costs—think furniture, appliances, carpeting—can make those big expenses a little easier to fit into your budget. Check the fine print, though. If you have not completely paid off the balance by the time the interest-free period ends, you may owe deferred interest—in other words, all the interest you thought you were saving by using the payment plan. And that interest rate may be high. That doesn't mean you need to avoid the offer, but do approach with caution and have a plan for paying the store card off in time to avoid the interest.
Your Credit Limit Is Likely to Be Low
A low credit limit can mean that when you use the card, your credit utilization—the portion of your credit limit you're using—can soar. The higher your credit utilization, the worse it can be for your credit score. Most credit experts recommend keeping it no higher than 30%, and lower is better. (Once you pay down your balance and it is reported to the credit bureaus, the impact from high utilization disappears from most scoring models.)
It May Not Be Widely Accepted
If your store credit card is a closed-loop credit card, you can use it at only one store or group of stores. If it's an open-loop credit card, it will be part of a payment network, such as Visa, MasterCard or American Express. In that case, you can use it at any merchant that accepts those cards. When you apply for a store credit card, you may not know which kind of credit card will be issued.
Should You Get a Store Credit Card?
There's no one answer for everyone. If there's a retailer where you're already shopping regularly, a store credit card might save you money. Some stores give you a heads-up about sales and offer a discount every time you use their card to make a purchase. You might also get free shipping or a longer return window.
And if you are new to credit, qualification may be easier. Once you have the card, you can work toward building a higher score.
If you occasionally carry a balance, a store credit card can be an expensive way to pay back borrowed money. And if it is accepted only by one store or a limited number of related stores, it can be limiting.
Stores seem to encourage making spur-of-the-moment decisions by offering discounts on everything in your cart, whether virtual or in real life. Deciding at the cash register may not be the best way to make a thoughtful decision about whether a certain card is a good idea for you.
How to Use a Store Card Responsibly
The most responsible way to use a store card is to use it as a convenience rather than as a tool for borrowing money, and to pay the statement in full and on time each month. Those things will help you avoid racking up expensive debt and instead benefit from rewards and discounts. If you use special financing, make arrangements to have the card paid off before the term ends.
The Bottom Line
Store credit cards can offer cardholders discounts and perks other customers don't get, but they tend to carry high interest rates and offer low credit limits. And while low credit limits can help you avoid overspending, they can also result in high credit utilization, which could potentially damage your credit scores. Paying on time, every time can help your credit, and store cards can be easier to qualify for than regular credit cards are—but they may not be as widely accepted.
Financing offers might save you money on interest, but be sure you understand what you must do to avoid having to pay interest on your purchase. If the perks offered are those you want and would use, getting a store credit card can be a smart move.
No matter which type of credit you choose to shop with, it's smart to keep an eye on your credit―and to have an idea of what credit card issuers see when you apply. You can keep tabs on your credit history with a free credit report from Experian.
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About the author
Bev O'Shea
Bev O'Shea is a Georgia-based freelance journalist specializing in personal finance and consumer credit. Most recently, she was a staff writer at personal finance website NerdWallet, where she was an authority on credit reports, credit scores and identity theft.
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