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 options. 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 BrandsMart, you could benefit from having the BrandsMart 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 BrandsMart credit 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 cash back into $300.
0% (14 months on Purchases)
11.99% - 22.99% Variable APR
See terms
No bonus offer9
No intro APR9
29.99%9
$09
  • 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 cash back into $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 APR $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! So you could turn $50 cash back into $100. Or turn $100 into $200. 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! So you could turn $50 cash back into $100. Or turn $100 into $200. 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.
  • No annual fee. No late fee on first late payment. No APR change for paying late.
  • 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.
  • 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

You can apply for a BrandsMart U.S.A. credit card online on their website or in-stores. The card is issued by Synchrony Bank. If you can't find their online application, we would recommend you to visit a local BrandsMart store and ask...

The BrandsMart U.S.A. credit card is issued by Synchrony Bank and comes with a 29.99% interest rate on purchases. However, you can get a special financing on select purchases. The special financing offers vary from 3 months to 6 years....

As a rule, store credit cards are offered to people with average and even bad credit. They are often used to build some credit as well. However, the BrandsMart credit card is offered to people with good or better credit history. So we...

Updated: December 3, 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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