Store Reward Cards
What You Need to Know About Store Rewards Cards
Frequently Asked Questions
What credit score is needed for a store credit card?
Many store credit cards have lower credit-score requirements than regular cards. About half of the cards The Balance has researched allow credit scores of 580. The other half tend to require scores of at least 670. As such, store credit cards can be a good starter card if you have bad credit or no credit.
Which retail stores have credit cards?
Most of the major retail stores you're familiar with offer credit cards including Apple, Amazon, Best Buy, Home, Depot, Gap, and Target, and Walmart. Some stores offer two types of cards: one that you can only use at the store (online or in-person), and one you can use anywhere. Gap is a good example of a retail store that offers a store-only card and a regular credit card you can use for all purchases.
Do store credit cards build credit?
Yes. Most stores report your account information to the credit bureaus. Those bureaus then add that information to the pool of information they have from your other accounts and generate a score. If you avoid late payments and pay your balance down to $0 at least every month, your credit scores should rise.
Can you use store credit cards anywhere?
Sometimes. Depending on your store, you may get a card that you can only use at the store. However, some retailers provide a store-only card and a credit card you can use anywhere you'd like. If you receive a credit card from the store, then you can use the card for purchases at the store or retailer of your choosing. The Costco Anywhere Visa is an example of a store credit card you can use anywhere.
Are store credit cards bad?
Store credit cards aren't inherently bad. However, they have drawbacks. One of the main weaknesses of retail cards is that their APRs tend to be higher than the average credit-card APR. Because interest payments will be higher, it's smart to pay off your retail-card balance so you don't pay the price of high interest rates.
The Amazon Store Card is a great product for Amazon Prime members who order a significant amount from the online retailer and don't have excellent credit. If you don’t have Prime, there isn’t much reason to get the card, since you won’t be eligible to earn any rewards.
The Walmart Rewards Card, a store card issued by Capital One, lets consumers earn lucrative rewards on Walmart purchases—especially those made online. If you shop at Walmart.com or spend a lot in-person, this card could be a good addition to your wallet.
The Apple Card, issued by Goldman Sachs, reserves its best rewards for Apple purchases and transactions made using Apple Pay, which makes it less of a physical card than it is an incentive program for using Apple’s proprietary technology.
The Target RedCard, issued by TD Bank, is a retail credit card for Target shoppers that offers a good discount on everyday shopping and some nice perks. There’s no annual fee, so even if you don’t spend a ton at Target, this card can save you money.
Best Buy Card
The My Best Buy Visa Card, issued by Citibank, pays rewards toward future purchases at the electronics retailer—but you can’t use your points anywhere else. You’ll earn ample points on Best Buy purchases while racking up rewards at gas stations, dining out, and in other rotating category offers.
The eBay Mastercard credit card, issued by Synchrony Bank, is aimed at frequent eBay shoppers who want to earn rewards they can redeem toward future purchases on the platform. The real draw of the card is the higher rewards earning rate you’ll get for things you buy on eBay with the card.
An annual percentage rate (APR) is the interest rate you pay each year on a loan, credit card, or other lines of credit. It’s represented as a percentage of the total balance you have to pay.
Co-branded credit cards are credit cards backed by a credit card network, card issuer, and a consumer brand such as Delta, Target, or Marriott.
A private label credit card is a type of credit card that's restricted to a specific retailer or brand. Businesses partner with a financial institution to offer private label credit cards and share in the profits from transactions.
Rewards Credit Card
Rewards credit cards offer rewards for purchases. A popular type of rewards card is a cash back card, which provides in cash back a certain percentage of every purchase. Rewards cards can also provide miles and points you can redeem for travel.