Paying for purchases with a store credit card can offer rewards and additional discounts at retailers where you regularly shop. Many retailers offer a store credit card, but not all of them are worth having.
The cards that made the GOBankingRates list of the best store credit cards represent the cream of the crop, and all have benefits that warrant a closer look. Use this guide to help you discover the best store credit cards available now, as well as what store credit cards are easy to get.
What Stores Offer Credit Cards?
A store credit card offers exclusive rewards and discounts for a specific store. Almost all major retailers have store credit cards, including Macy’s, Dillard’s, Kohl’s, The Home Depot and Walmart.
Closed-Loop Cards vs. Open-Loop Cards
Store-branded cards that don’t have a Mastercard, Visa, American Express or Discover symbol are examples of closed-loop credit cards. Closed-loop cards are only accepted at the retailer that issued them, such as Lowe’s or Target.
Open-loop cards are co-branded with the store’s name and a major credit card network. You can use them at the store and everywhere Mastercard, Visa, American Express or Discover credit cards are accepted. The Capital One Walmart Rewards Mastercard and Amazon’s Prime Rewards Visa Signature Card are open-loop options.
Closed-loop cards focus on discounts and special access events for a particular store. Open-loop cards, however, can provide perks like zero- or low-interest balance transfers, insurance, extended warranty and travel rewards.
Best Store Credit Cards
So, what are the best store credit cards to get? Here are some that are worthy of a spot in your wallet.
Best Overall: Capital One Walmart Rewards Mastercard
APR: Depending on credit score,
Annual Fee: None
Benefits
- Open-loop card — can be used anywhere Mastercard is accepted
- 5% cash back on Walmart Pay app, Walmart.com and Walmart Grocery Pick Up and Delivery purchases
- 5% cash back on in-store purchases when using Walmart Pay for the first 12 months after approval
- After the first 12 months, 2% cash back on in-store purchases at Walmart, Walmart fuel stations and Murphy USA
- 2% cash back on travel and restaurants
- 1% cash back on all other purchases
- No foreign transaction fees
- Redeem rewards for travel, gift cards, as payment during online checkout at Walmart.com and as statement credits
Drawbacks
- Higher credit scores required to qualify
Why Shoppers Like This Card
The Capital One Walmart Rewards Card tops this list of store credit cards because it checks all the boxes. The card rewards both the purchases you make at Walmart and purchases made anywhere else you use the card. Rewards can be redeemed for travel, cashed in for gift cards, applied as statement credits or used during online checkout.
Notable digital features come with the card. Customers can use the Walmart Pay app instead of carrying the card. “We are excited to offer a truly digital experience for customers where, for example, Walmart shoppers can apply for the card in-store via the Text to Apply feature, and if approved and eligible, use their new card digitally at checkout moments later,” said Ritin Dhawan, managing vice president of product management at Capital One, in a news release.
Best for Everyday Items: Target RedCard
APR: 26.65% variable
Annual Fee: None
Benefits
- 5% discount on all eligible Target and Target.com purchases
- Free two-day shipping for hundreds of thousands of items found on Target.com
- 10% discount coupon each year on card anniversary
- 30 extra days for returns for most Target and Target.com purchases
- Can pay with Target Wallet on your smartphone for faster store checkout
- Exclusive Target RedCard coupons through the Circle feature of the Target app
Drawbacks
- Can only be used at Target and Target.com
Why Shoppers Like This Card
Target’s RedCard rewards its loyal shoppers with 5% off every purchase and an extended return time of 30 days. You can even get 5% savings at Target Starbucks locations.
The web portal and smartphone app make it simple to manage and pay for your card. Download the Target app to get access to special coupons through Circle, and pay with your smartphone at store checkouts with the Wallet feature.
Best for Clothes: Gap Good Rewards Mastercard
APR: 29.99% variable
Annual Fee: None
Benefits
- Can be used anywhere Mastercard is accepted
- Other opportunities throughout the year to earn more loyalty benefits
- Can earn points at Gap brand stores such as Athleta, Banana Republic, Gap and Old Navy
- Five points for every $1 spent in-store or online at the Gap brands family of stores; 100 points equals $1 in rewards
- One point per dollar spent elsewhere
- Special bonus-point shopping days
- Can redeem points for credit to use at Gap, Gap Factory and Gap brand stores
- First purchase discount
- Free shipping on orders of at least $50
- Special gift on your birthday
Drawbacks
- Great for discounts but not for redeeming rewards — one point is worth only one cent
- Points expire if no points are earned or redeemed for 12 months
- Very high APR
Why Shoppers Like This Card
The Gap Mastercard is the best clothing store credit card available because of its reach. You can earn and redeem points at Gap and Gap Factory stores, Banana Republic, Old Navy and Athleta. You can also earn points for everyday purchases wherever Mastercard is accepted. Points can be redeemed at all Gap brands; however, upon redemption, each point is only worth a penny.
Manage your account through the card website or the Gap app and follow your rewards progress at Gap.com.
Best for Home Improvement: Lowe’s Advantage Card
APR: 26.99%
Annual Fee: None
Benefits
- 5% off every Lowe’s eligible purchase or order or six months special financing with a $299 minimum purchase
- 20% discount on first in-store purchase through Jan. 31, 2023
- Special financing of 12 months on appliances
- Special financing of 12 months for installed heating, air conditioning and ventilation
- Exclusive cardholder events
Drawbacks
- Closed-loop card can only be used at Lowe’s
- Different financing terms per product can be confusing
- Deferred interest accrues if the promotional balance isn’t paid in full in time
- High standard APR
Why Shoppers Like This Card
Lowe’s is more than a huge hardware store — you can also pick up home furnishings, décor, appliances and garden supplies. Buying with the Lowe’s Advantage Card gives you options. Finance your larger purchases with zero or low interest and receive 5% back on all your purchases and orders.
Manage your card through the card website and set up email or text alerts on account activity.
Best Open-Loop Card: Amazon Prime Rewards Visa Signature Card
APR: Depending on credit score,
Annual Fee: None
Benefits
- Open-loop card can be used anywhere Visa is accepted
- $60 Amazon gift card instantly upon approval
- 5% back at Amazon.com and Whole Foods Market with an eligible Prime membership
- 2% back at restaurants and gas stations
- 1% back on all other purchases
- 10% or more back on select products at Amazon.com
- Travel rewards credit card perks like no foreign transaction fees, travel and emergency assistance, lost luggage reimbursement, baggage delay insurance and travel accident insurance
- Exclusive benefits at Visa Signature Luxury hotels
- No annual fee
- No foreign transaction fee
Drawbacks
- An annual $139 Amazon Prime membership is required
Why Shoppers Like This Card
The Amazon Prime Rewards Visa card is the ideal combination of store credit card and travel rewards card. Besides earning savings at Amazon.com and Whole Foods Market, you’ll have access to traveler perks that cover mishaps like lost or delayed luggage and travel emergencies. Plus, you get exclusive benefits at Visa Signature Luxury hotels. And you won’t have to worry about where you use the card — no foreign transaction fee means you can shop anywhere Visa is accepted, without any currency exchange penalties.
Manage your card through the Chase online portal or Chase mobile app, where you can make payments, add users and set up email or text alerts on account activity.
Best for Discounts: Costco Anywhere Visa Card by Citi®
APR:
Annual Fee: None
Benefits
- Can be used anywhere Visa is accepted
- 4% rewards rate on eligible gas purchases and EV charging
- 3% reward on eligible travel and restaurants, including cafes, bars, lounges and fast food restaurants
- 2% back on all Costco and Costco.com purchases
- 1% back on all other purchases
- No foreign transaction fees
- Bonus reward categories
- Can use the card as a Costco membership ID
- Damage and theft purchase protection included
Drawbacks
- Requires a Costco membership of $60 a year or more
- Cash-back rewards are paid once a year, at the end of the February billing cycle, and must be redeemed at Costco
Why Shoppers Like This Card
Costco is a wholesale club for shoppers who love volume and big discounts. Every time you purchase something or get gas, you’re earning rewards you can later redeem at Costco.
You’ll receive cash-back rewards in the form of an annual reward certificate, which can be applied to your Costco in-store purchases. The wait is long, but consider how much your reward certificate might be worth after a year of gas and purchases.
Best for Kitchen and Home Décor Shopping: West Elm Key Rewards Credit Card
APR: 29.24% to 31.24% variable
Annual Fee: None
Benefits
- 5% rewards for each $1 of eligible purchases at West Elm or any of the other Williams Sonoma stores
- $25 birthday reward annually
- Visa cardmembers earn an additional 4% in rewards at grocery stores and restaurants — excluding fast food
- Visa cardmembers also earn 1% in rewards on all other purchases
- No annual fee
- Relatively easy to qualify for
- Free standard shipping on Williams Sonoma purchases within the 48 contiguous states
- Sustainable card made out of recycled plastic
Drawbacks
- High APR
- No rewards for promotional financing purchases
Why Shoppers Like This Card
For fans of West Elm, Williams Sonoma, Pottery Barn and their sister companies, the West Elm Credit Card essentially offers free benefits for shopping they would already be doing. The no-annual-fee card only costs customers if they carry a balance, which would effectively negate all of the benefits. Between a generous award rate and free anniversary bonuses, the card is a no-brainer for fans of these brands.
Are Store Credit Cards Worth It?
Getting a store credit card can be a good idea. If you are a loyal customer of a retailer, you can grab some serious discounts and bonuses by getting approved for a store card. And while store cards are not always the best value, they can help build or rebuild your credit.
Many store cards, including Amazon cards, have an instant approval process. However, cards that offer the best rates often require a FICO credit score of 670 or higher.
Even if you have marginal scores, there are store credit cards for fair credit. Store credit cards for no credit history and store credit cards for bad credit are also available. A card that is easier to qualify for, however, may have higher interest rates and a lower credit limit.
What To Consider When Choosing a Store Credit Card
When deciding on a store credit card, see if it offers the following features:
What To Look For in a Store Credit Card
- Exclusive cardholder benefits like special promotions, free shipping, discounts or an extended return policy
- No annual fee and competitive interest rates, so costs don’t offset any loyalty rewards earned
- Easy online access and a user-friendly mobile app
Can Store Credit Cards Hurt Your Score?
Store credit cards can affect your credit score if you don’t manage your accounts wisely. For example, your credit scores can suffer if your credit utilization is too high or you open and close too many accounts. Here are some important things to watch out for when using a store credit card.
Avoid Overspending
It’s not worth it to overspend or carry a balance simply to earn more rewards or perks. Pay off the balance in full each month to avoid interest charges that might offset any earned rewards.
Make Timely Payments and Avoid Carrying a Balance
Always make your payments on time — not doing so could cost you expensive late fees and affect your credit.
Todd Christensen, education manager at MoneyFit, has a good tip on how to stay on top of your bill: “Never leave the store without paying off the entire balance at the customer service desk first.”
Understand the Difference Between Deferred and 0% Interest
Deferred interest is not the same as 0% interest. If you’re offered 0% interest, no interest will be added to your balance during the promotional period. Deferred interest means that if you pay off the balance by the end of the promotional period, you won’t owe any interest. Otherwise, interest charges will begin accruing.
Avoid Maxing Out Low-Limit Credit Cards
Store credit cards often come with low credit limits that can be maxed out in a single trip. According to the Consumer Financial Protection Bureau, you should keep your use of credit at no more than 30% of your total credit limit to avoid a hit to your credit score. So, if you have a card with a $500 limit, don’t spend more than $150 before paying off the balance.
Store Credit Cards Offer Exclusive Discounts and Rewards at Your Favorite Retailers
Don’t leave money on the table when you shop at your favorite retailers. Having a store credit card can give you exclusive access to discounts and perks you might not get if you simply pay cash.
Before you sign up for a card, however, make a store credit card comparison to ensure you’re getting the best deal. Additionally, spend responsibly and pay your card balance off in full each month to avoid the cost of high interest rates.
John Csiszar and Cynthia Measom contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Jan. 4, 2022.
The information related to the Amazon Prime Rewards Visa Signature card was collected by GOBankingRates and has not been reviewed or provided by the issuer of this card. Product details may vary. Please see the issuer’s website for current information. GOBankingRates does not receive commission for this product.
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