Finance

Published on January 26th, 2020 | by Sunit Nandi

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The Best Store Credit Cards

If you’ve ever purchased items at a major retail store, a sales representative has probably asked if you would like to sign up for the store’s credit card. Even online retailers, such as Amazon, have their own store credit cards. However, how many people actually know the difference between a traditional credit card and a store credit card?

The biggest difference comes down to the limited use of a store credit card. Unlike traditional credit cards, you can only use store or retail cards at specific locations. If you’re approved for a Walmart credit card, for instance, you can only use that card at Walmart.

There are plenty of benefits and drawbacks to using these cards. For example, retail cards offer plenty of discounts and cash-back programs for loyal members. Also, many of them give you an allotted time period in which to pay off certain purchases without accruing interest.

However, there are a few drawbacks if you don’t choose the right retail card. One major drawback is that you can only use that card at that specific store. If you don’t shop with that retailer often, the card does you no good. Also, retail cards have significantly higher interest rates than traditional credit cards if you don’t pay off purchases in time.

If you’re thinking of getting a store credit card, it’s important to note that some are better than others. Here’s a look at some of the best retail cards that you can get.

Amazon.com Credit Card

Interest Rate: 27.49%

Annual Fee: No annual fee.

Sign-Up Bonus: Zero interest on purchases for six to 24 months. You receive a $10 Amazon gift card upon card approval.

Ongoing Rewards: Earn 5% back on Amazon.com purchases if you’re an Amazon Prime member. The card also gives you access to exclusive financing offers only available to Amazon.com Store Cardholders.

If you’re an Amazon Prime member, you’re upgraded automatically to the Amazon Prime Store Card. Of course, you don’t have to be a Prime member to get the Amazon credit card. Unlike the standard store card, you’ll earn 5% back on every purchase on the web-store with the Prime version of the card. The cost to be a Prime member is $119 a year.

Capital One Walmart Rewards Card

Interest Rate: 17.99% — 26.99%

Annual Fee: No annual fee.

Sign-Up Bonus: Get 5% cashback on in-store purchases for 12 months when you use this card with Walmart Pay.

Ongoing Rewards: Earn 5% back on Walmart.com and Walmart Grocery pickup or delivery. You also earn 2% back in-store after the introductory 12-month promotion. You can earn 1% back wherever stores take Mastercard.

The Capital One Walmart Rewards Card doesn’t have an annual fee, and you can redeem the cashback that you earn on gift cards for Walmart or other stores. You can redeem your rewards for flights as well.

Target Red Card

Interest Rate: 24.65%

Annual Fee: No annual fee.

Sign-Up Bonus: Get $25 off a future purchase of $25 or more when you’re approved for a Target RedCard.

Ongoing Rewards: Get 5% back when you buy from Target stores or Target.com.

The Target Red Card gives you access to several benefits beyond 5% back on purchases. You enjoy free two-day shipping when you shop at Target.com. All RedCard holders get early access to in-store and online promotions. Also, if the Target store that you shop at has a Starbucks, you can save 5% on your order and gain access to exclusive discounts when you pay with the RedCard.

TJX Rewards Credit Card

Interest Rate: 29.24%

Annual Fee: No annual fee.

Sign-Up Bonus: You receive 10% off your first in-store or online purchase.

Ongoing Rewards: Earn five points per dollar when you spend at T.J. Maxx, Marshalls, HomeGoods, and Sierra Trading Post.

The way you earn cashback using the TJX Rewards credit card is through a points-based system. You earn five points for every dollar that you spend. When you reach 1,000 points, you earn a $10 reward certificate. This points system equates to a 5% discount on your purchases when you remember to spend your certificates.

Costco Anywhere Credit Card by Citi

Interest Rate: 16.74%

Annual Fee: No annual fee.

Sign-Up Bonus: No bonus when you sign up.

Ongoing Rewards: Get 4% back at eligible gas stations, 3% back and on travel purchases and at restaurants, 2% back on Costco or Costco.com purchases, and 1% back on other purchases.

By the way, Costco also also offer travel benefits too. You can learn more about that here.

The Costco Anywhere Visa Credit Card by Citi can be used at stores other than Costco. Keep in mind that, while this card doesn’t have an annual fee, you have to be a Costco member to apply. A Costco membership costs $55 a year. Since this is a traditional credit card, you also need excellent credit in order to be approved.

Do Research to Find the Right Store Credit Card for You

Store credit cards often get a bad rap because of their high-interest rates. If you research and select the right card to fit your needs, though, it can be very rewarding. Pick a card from a retailer where you shop a lot. Also, make sure that you pay off your balance each month to avoid high interest rates. By following these tips, you can make your store card work in your favor.

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I'm the leader of Techno FAQ. Also an engineering college student with immense interest in science and technology. Other interests include literature, coin collecting, gardening and photography. Always wish to live life like there's no tomorrow.



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