Pros and Cons of Store Credit Cards

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

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(871)Rated 4.57 out of 5 stars, 871 reviews

91%

would recommend

Citi Double Cash^® Card

Intro APR:0% for 18 months on Balance Transfers

Ongoing APR:18.24% - 28.49% (Variable)

Rewards:

2% (cash back)

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.

Annual Fee:$0

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(90)Rated 4.08 out of 5 stars, 90 reviews

80%

would recommend

The opensky^® Secured Visa^® Credit Card

Ongoing APR:23.89% Variable

Rewards:

10% (cash back)

Earn up to 10% cash back on purchases made with your opensky Secured Visa Credit Card at 40,000+ retailers. Visit opensky Rewards in the opensky app for participating retailers. Learn more at openskycc.com. See Rewards Terms and Conditions for more information.

Annual Fee:$35

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(1380)Rated 4.03 out of 5 stars, 1380 reviews

78%

would recommend

Credit One Bank^® American Express^® for Rebuilding Credit

Ongoing APR:29.74% Variable

Rewards:

1% (cash back)

Earn 1% cash back rewards on eligible gas, grocery purchases and mobile phone service, internet, cable and satellite TV services, terms apply

Annual Fee:$75 First year. $99 thereafter, billed monthly at $8.25

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Terms Apply

(170)Rated 4.52 out of 5 stars, 170 reviews

89%

would recommend

Blue Cash Preferred^® Card from American Express

Intro bonus:

As High As $300 Cash Back. Find Out Your Offer.

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)

Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. 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 intro annual fee for the first year, then $95.

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Terms Apply

AT&T Points Plus^® Card from Citi

Intro bonus:

$200

Earn a $200 statement credit after you spend $1,000 on purchases in the first 3 months of account opening.

Ongoing APR:19.49% - 27.49% (Variable)

Rewards:

1x - 3x (Points per dollar)

Earn 3 ThankYou^® Points for every $1 spent at gas and EV charging stations. Earn 2 ThankYou^® Points for every $1 spent at grocery stores and 2 ThankYou^® Points for every $1 spent on AT&T products and services. Earn 1 ThankYou^® Point for every $1 spent on all other purchases.

Annual Fee:$0

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(9)Rated 4.44 out of 5 stars, 9 reviews

83%

would recommend

First Progress Prestige Secured Mastercard^® Cash Back Rewards

Ongoing APR:13.49% Variable

Rewards:

1% - 10% (cash back)

Earn up to 10% Cash Back on everyday purchases at participating dining, grocery, retail, and other eligible merchants, plus 1% Cash Back on payments made to your First Progress Card.^^

Annual Fee:$49

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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

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Terms Apply

Ollo Everyday Rewards

Ongoing APR:23.99%-29.99% Variable

Rewards:

1% - 3% (cash back)

Unlimited 3% cash back on all gas stations and EV charging stations, grocery store and drugstore purchases. Unlimited 1% cash back on all other purchases.

Annual Fee:$0

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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.