Why You Shouldn't Get a Popular Store Credit Card
ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site.
Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site.
Compensation from our advertising partners impacts how and where their products appear on our site,
including, for example, the order in which they may appear within review lists.
Credit-Land.com has not reviewed all available credit card offers in the marketplace.
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, access to special sales and more, and as a result, most consumers apply for these cards, but does it always work out that way? It's no doubt that if you frequent a specific retailer, like Sephora store, applying for the Sephora Credit Card could save you money. But if you don't shop there often would this card or a regular rewards credit card be better?
Here we're comparing basic features of two credit cards. As an example, we took Sephora credit card and compared its terms to those of a regular rewards credit card. This simple side-by-side comparison can help you understand which card is worth applying.
- 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.
- #1 Most Trusted Credit Card according to Investor’s Business Daily.
- No annual fee.
- Discover is accepted nationwide by 99% of the places that take credit cards.
| Intro APR on Purchases | Regular APR | Annual Fee |
|---|---|---|
| 0% Intro APR (14 months on Purchases) | 11.99% - 22.99% Variable APR | $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.
- Automatically earn unlimited 1.5x Miles on every dollar of every purchase - with no annual fee.
- New! Redeem Miles to pay any part of your monthly bill, including your minimum payment.
| Intro APR on Purchases | Regular APR | Annual Fee |
|---|---|---|
| 0% (15 months on Purchases) | 13.49% - 23.49% (Variable) | $0 |
- The Citi Rewards+® 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 for 15 months from date of first transfer and on purchases from date of account opening. 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.
| 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.
| 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.
| 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
| Intro APR on Purchases | Regular APR | Annual Fee |
|---|---|---|
| 0% (14 months on Purchases) | 11.99% - 22.99% 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! 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.
| 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.
- Earn rewards while building your credit history that can help you after graduation. And, get your free Credit Scorecard that includes your FICO® Credit Score and important details that help make up your score.
- No annual fee. No late fee on first late payment. No APR change for paying late.
- Refer-a-Friend: Once you become a Discover it® Student cardmember, you can earn a statement credit each time you refer a friend and they’re approved. Over half a million students got Discover Cards from their friends' recommendations.
- 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.
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
Sign-up for their Beauty Insider program. It's a good first step when it comes to trying to get more out of your Sephora purchases. When making a large purchase, it can sometimes be a good idea to use a general rewards credit card, so...
Apply for a general credit card that can be used to complete your Sephora purchases. This same logic applies to any store that doesn't offer their own credit card. A good option to consider when looking for an everyday card is a general...
Yes, we do. The world of credit cards is very big. Just because there is no Sephora card, you don't have to worry about not being able to make your purchase. If you take a look at all of the cards that are currently being offered by...
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.
Top Credit Cards from our partners: April 2021
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.
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.
Featured News
February 11, 2021
Refer-a-friend programs give you the chance to earn extra cash back, rewards points, or bonus miles by simply inviting your friend, a family member, or a complete stranger to apply for a credit card...
January 20, 2021
With the acquisition of fintech startup Blockrize last year, Gemini, a crypto exchange and custodian, accelerated its efforts to launch a credit card with cryptocurrency rewards. The Gemini Credit...
January 11, 2021
Petal launched a new promotion that allows Petal members to enter into a sweepstake to have their credit card bill paid off, up to $500. Many people have a bad habit of making only the minimum...
Related Research
If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to...
When you reach for your wallet to pay for groceries, gas, dinner out or any other everyday purchase, are you searching for cash, a debit card or a credit card? Many people hesitate to charge this...
We all have some standard set of monthly expenses like food, gas, rent and utility bills that eat the biggest part of our monthly budget. But what if you could save on those costs by earning rewards,...