How do store credit cards work? - General FAQ


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Credit Card Applications » Questions » FAQs » General » How do store credit cards work?

How do store credit cards work?

Answered on | Updated on May 1st, 2017
The content is accurate at the time of publication and is subject to change.

Store credit cards are credit accounts that are offered by retailers together with credit card issuing companies. Their usage is usually limited to the issuing store. That means you won’t be able to use store cards anywhere outside the store.

Store cards may give access to additional, member-only discounts, sales events, or special financing offers. However, all these benefits may not look lucrative if you consider the fees. Store cards tend to have high interest rates and fees. Some store cards even charge membership fees on a monthly basis.

If you are rebuilding or building your credit, you may want to get a store credit card as it is rather easy to get. Store cards can be reported to the major credit bureaus. So, if you manage it well, it may help you improve your credit.

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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