September 2026: Best Retail Store Cards from Our Partners

Store credit cards (or retail credit cards) are offered by specific stores or brands. Like traditional credit cards, store credit cards give access to a revolving line of credit. That means, you can make purchases with store credit cards and pay down the balance later in a billing cycle.

Retailers offer either store credit cards or co-branded credit cards, or both. Store credit cards (aka closed-loop cards) can only be used at that particular store or chain of stores. Co-branded cards (aka open-loop cards) can be used everywhere the card network shown on the card is accepted. These cards usually have a retailer's logo and payment network logo (Visa, Mastercard, or American Express) on them.

Typically, when retailers offer both store credit cards and co-branded credit cards, you can't choose which card to apply for. You simply fill out one application form and the issuer of the card decides whether you qualify for a co-branded card or for a store-only version of it.

Store credit cards can be a great financial tool when used responsible. Still, they have their own pros and cons. Here are the benefits you may get with a store credit card and things to consider before getting one.

Benefits of retail store credit cards:

- Rewards: a store credit card may offer better rewards on purchases in the store than traditional rewards credit cards.

- Bonuses: some store cards come with perks like additional discounts, promotional coupons, special financing, or invitations to cardholder-only events.

- Credit building: store-only credit cards are often available to people with bad credit, which means with consistent, responsible use, store cards could help you build credit over time.

Drawbacks of retail store credit cards:

- Interest rates: typically, store credit cards have higher interest rates than traditional credit cards.

- Low credit limits: store-only credit cards tend to have lower credit limits, and co-branded credit cards may offer better credit limits.

- Restricted in use: store-only credit cards can only be used at specific retailers. Plus, typically, earned rewards can be redeemed within the store only.

Are store credit cards worth it?

Getting a store credit card could make sense when you are relatively new to credit or have bad credit. Many retail cards are easier to get as they have less stringent credit requirements. Thus, when used responsibly, store credit cards may offer a solid path toward establishing a good credit history.

If you are loyal to a specific retailer and shop there on a regular basis, you can get better value on your purchases using a store credit card. Store credit cards may offer special financing on select purchases, member-only discounts, or higher rewards on card purchases. Add here such perks as free shipping and discounts and you can see how using a store credit card can actually save you money.

If you occasionally carry a balance on credit cards, a store credit card can be an expensive way to shop at your favorite store. Plus, store credit cards may encourage buying more than you initially intended.