Why You Shouldn't Get a Popular Store Credit Card

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5 Reasons Why a Co-branded Store Credit Card Is a Terrible Idea

It's very common for retailers to offer their own co-branded credit card option. When consumers visit these retailers, they are commonly prompted by cashiers with the opportunity to apply for the store's credit card during checkout. Many of these cards offer rewards, savings opportunities or both, and as a result, most consumers apply for these cards expecting to save a lot of money, but does it always work out that way? It's no doubt that if you frequent a specific retailer, applying for their card could save you money. If you were a person who frequently shopped at PacSun, you could might benefit from having the PacSun Credit Card, but if you don't shop there often would this card or a regular credit card be better?

Here we've provided a comparison of some basic features of both a store credit card and a regular credit card. As an example, we took the PacSun card and compared its terms to those of a regular credit card that offers rewards. From the comparison, you can get a better understanding of whether a store credit card is worth applying for, or you'd better off with a different card.

Max. Rewards
Rewards Bonus
Intro APR on Purchases
Ongoing APR
Annual Fee
GENERAL REWARDS CARD
VS
Discover it® Cash Back Apply for Discover it® Cash Back - Credit-Land.com
5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate
INTRO OFFER: Unlimited Cashback Match – only from Discover. 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. You could turn $150 to $300.
0% (14 months on Purchases)
11.99% - 22.99% Variable
See terms
No bonus offer12
No intro APR12
25.24%12
None12
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. 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. You could turn $150 to $300.
  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
  • Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Redeem cash back in any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • No annual fee.
  • Discover is accepted nationwide by 99% of the places that take credit cards.
For Excellent/Good Credit
Excellent/Good Credit
APPLY NOW
Compare
Intro APR on Purchases Regular APR Annual Fee
0% (14 months on Purchases) 11.99% - 22.99% Variable $0
  • UNLIMITED BONUS: Only Discover will automatically match all the Miles you’ve earned at the end of your first year. For example, if you earn 35,000 Miles, you get 70,000 Miles.  There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match.
  • Earn unlimited 1.5x Miles for every dollar spent on all purchases - with no annual fee.
  • Turn Miles into cash in any amount, any time. Or redeem as a statement credit for travel purchases like airfare, hotels, rideshares, gas stations, restaurants and more with no blackout dates. However you redeem, Miles keep the same value. And Miles never expire.
*See Terms
Excellent Credit
APPLY NOW
Compare
Intro APR on Purchases Regular APR Annual Fee
0% (15 months on Purchases) 13.49% - 23.49% (Variable) $0
  • The Citi Rewards+SM Card - the only credit card that automatically rounds up to the nearest 10 points on every purchase - with no cap.
  • Earn 15,000 bonus points after you spend $1,000 in purchases with your card within 3 months of account opening; redeemable for $150 in gift cards at thankyou.com
  • 0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will be 13.49% - 23.49%, based on your creditworthiness. Balance transfer fee — either $5 or 3% of the amount of each transfer, whichever is greater.
Fair/New to Credit
APPLY NOW
Compare
Intro APR on Purchases Regular APR Annual Fee
0% (6 months on Purchases) 12.99% - 21.99% Variable $0
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. 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. Just a dollar-for-dollar match.
  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Good Grades Rewards: $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
*See Terms
APPLY NOW
Compare
Intro APR on Purchases Regular APR Annual Fee
N/A 13.99% – 23.99% (Variable) $0
  • 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.
  • Balance Transfer Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% – 23.99%, based on your creditworthiness.
APPLY NOW
Compare
Intro APR on Purchases Regular APR Annual Fee
N/A 15.99% - 24.99% (Variable) $99, waived for first 12 months
  • Earn 50,000 American Airlines AAdvantage® bonus miles after $2,500 in purchases within the first 3 months of account opening
  • Earn 2 AAdvantage® miles for every $1 spent at gas stations and restaurants
  • Earn 2 AAdvantage® miles for every $1 spent on eligible American Airlines purchases
Excellent/Good Credit
APPLY NOW
Compare
Intro APR on Purchases Regular APR Annual Fee
0% (14 months on Purchases) 11.99% - 22.99% Variable $0
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. 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. Just a dollar-for-dollar match.
  • Earn cash back on your next road trip with 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Redeem your cash back for any amount, any time. Cash rewards never expire.
*See Terms
APPLY NOW
Compare
Intro APR on Purchases Regular APR Annual Fee
0% (18 months on Purchases) 14.74% - 24.74% (Variable) $0
  • 0% Intro APR for 18 months on purchases from date of account opening and 0% Intro APR for 18 months on balance transfers from date of first transfer. After that the variable APR will be 14.74% - 24.74%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
  • There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater
  • Get free access to your FICO® Score online.
Card Type Credit Check Rewards Program
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. 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. Just a dollar-for-dollar match.
  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Good Grades Rewards: $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.
  • Freeze It® on/off switch for your account that prevents new purchases, cash advances & balance transfers in seconds.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • No annual fee. No late fee on first late payment. No APR change for paying late.
  • Discover is accepted nationwide by 99% of the places that take credit cards.
  • 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 12.99% - 21.99% applies.
*See Terms

Limited credit history should never stop you from applying for a credit card. In fact, your limited credit is better than bad credit in the eyes of the creditors because you've just recently started and haven't had a chance to spoil your credit history. Therefore, there are a lot of credit cards offered and you will have something to choose from.

People with limited credit can find unsecured credit card offers. Credit cards may even have rewards or no annual fees. Interest rates vary, but if you pay off the card balance in full each month, you won't pay a penny of interest. Some store credit cards may also be available to those with limited credit, but their main disadvantage is credit limit, which is extremely low. So, if you do not want your credit card to be maxed out, consider regular credit cards with bigger limits.

User Questions about Savings at Stores

The PacSun credit card has an easy application process just like any other card. One way you can apply for the PacSun card is by visiting PacSun.com and clicking on the option that says credit card. This will take you to the Comenity...

When deciding which credit card you should apply for to start building your credit history, there are several factors you should take into consideration. First off, you’re going to want to ensure the card you apply for is not going to...

Updated: November 29, 2020
Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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