Here’s Why Store Cards Are Good For Consumers

You’ve probably noticed the wide variety of credit cards available right at your favorite stores! Retailers like Amazon, Walmart, Target, Kohl’s, and Old Navy all offer branded credit cards to make shopping more rewarding.

Just imagine saving 15% or even 30% on your next purchase. How does that sound? Pretty great if you ask me! And that’s what you get with a store credit card!

While store cards can offer awesome perks like discounts, cashback, rewards points, and free shipping, it’s prudent to shop around to find the best fit for your needs. Some may have higher interest rates if you don’t pay off the full balance each billing cycle.

Which brings us to the question: are store credit cards worth it?

If you use them smartly and pay on time, retail cards are a great way to save more of your hard-earned cash and earn rewards. In this guide, we’ll explain why store credit credits are a great option for consumers. But first, a quick primer on store cards.

What Is a Store Credit Card?

A store credit card is like your own personal shopping concierge, tailor-made for dedicated fashionistas like yourself. It allows you access to discounts, perks, and deals designed just for loyal customers. Rather than a traditional bank card, it’s issued directly by the retailer.

Store cards serve to encourage repeat visits and more shopping. You’ll find special offers, rewards, and financing options whenever you shop at participating locations. Extra savings and incentives fuel further discoveries, creating a win-win for stores and shoppers alike. What’s not to love about premium perks for your favorite go-to brands?

Store vs. General Purpose Cards: What’s the Difference?

Store credit cards and general-purpose credit cards each serve their own distinct role in the consumer finance landscape. 

Store credit cards are commonly issued directly by retailers and aim to promote loyalty and repeat business at those individual stores. They frequently offer benefits such as discounts, rewards programs, or specialized financing deals, but can only be used when making purchases from the retailer that issued the card.

In contrast, general-purpose credit cards enjoy broad acceptance and can be used at stores worldwide. They’re like your Swiss Army Knife – versatile, welcomed almost anywhere, and will fulfill your financing needs no matter where your shopping adventures take you.

Benefits of Using Store Credit Cards

Now that you know what a store credit card is and how it differs from a traditional credit card, what advantages does it bring to shoppers?

You Can Earn Rewards

Imagine getting rewarded for all your shopping with store loyalty programs!

Most retailers offer bonus points when you use their branded credit card. Even better, rewards cards from major brands let you earn points anywhere – so you can treat yourself each time you stop for coffee or fill up your tank.

Some retailers offer tiered programs, and depending on your reward tier, you could earn up to 10% of your spending. Just imagine all the great deals you’ll get redeeming all those points at your favorite stores. It’s surely a no-hassle way to win big on shopping.

Most Have No Annual Fees

The beauty of store credit cards is that they come with no annual fees. 

Just like the awesome no-annual-fee business credit cards that don’t charge a yearly fee and still offer significant rewards, store credits don’t charge annual fees, and some even give you cool perks just for signing up!

Take the Walmart Rewards World Mastercard and the President’s Choice Financial World Mastercard, for example. Both are free to use year after year, plus they’ll hook you up with rewards from stores you probably shop at all the time.

You Can Save Money

Having a store credit card is a super fun way to save money while shopping at your favorite store! Store cards offer awesome perks like special discounts just for cardholders, free shipping on every order, and rewards points you can use like cash – how neat is that?!

If you’re an ultra-loyal customer who shops there all the time, a store card is a no-brainer for sure. As long as you stick to your budget and don’t go overboard spending, you’ll be gathering up the rewards while everything you love is magically cheaper.

You May Qualify Without a Stellar Credit Score

No need to worry if your credit score isn’t perfect – store credit cards are a great option to help build your score back up. Their approval is quite generous, and their standards are much more flexible than those for general-purpose cards.

Card issuers are often willing to approve applicants with less-established credit histories since store cards feature certain inherent restrictions, such as constrained credit lines and limited flexibility. These cards can help users start building credit over time, so long as accounts remain in good standing and responsibilities are fulfilled as agreed.

You Can Use it to Build Credit

Store cards can be a great first step on your credit journey! They can be a smart way to start building credit, as their approval process is straightforward.

As long as on-time payments are reported, you’ll begin demonstrating responsible credit usage right away. Aim to pay your statement balance each month so you aren’t charged interest.

But remember – with great credit comes great responsibility. Shop within your means and avoid going overboard, or it could set you back from all your progress. If you build smart shopping habits now, you’ll be well on your way to credit success!

You Get Additional Cardholder Perks

Store credit cards are full of awesome perks just waiting for you to discover! As a cardholder, you’ll have access to many membership benefits beyond the usual discounts.

Return items without a receipt? No problem! Want a sneak peek at exclusive sales? Get first dibs at members-only shopping events. Love free stuff? Say goodbye to shipping fees! And if you ever need flexible payment options, many retailers offer financing options even for big purchases.

Wrapping Up

Store credit cards are an awesome way to rack up rewards, save big with discounts, and strengthen your financial health. Before signing up, be sure to shop around. Compare everything from interest to perks like cashback, points, and protection plans. Do your research so you can pick the perfect plastic partner for all your shopping adventures.