Do store credit cards help you build credit?

The main difference between a store card and a credit card is that a store card usually has limited use compared to a regular credit card. Most store cards can only be used for purchases from a specific store or group of stores. Regular credit cards can be used at any merchant that accepts cards from their network – American Express, Discover, Mastercard, or Visa.... read full answer

Note that many stores also offer cards that belong to a major credit card network. These cards work the same way as a regular credit card but have some store-specific benefits.

Store Card vs Credit Card

• Where you can use them: Regular credit cards and store cards that belong to a certain card network tend to have stricter requirements for approval than the store credit cards with limited use. Most store cards require only fair credit to be approved, whereas those belonging to a certain network generally require good credit. Other non-store credit cards are available to people with all kinds of credit, from bad to excellent.
• Rewards: Usage limitations also restrict any store cards’ rewards to the location(s) they’re affiliated with. Regular credit cards, on the other hand, will allow for more diverse spending and redemption options, often at a higher value as well.
• Regular interest: Store cards generally have higher regular APRs than general-purpose credit cards. If you carry a balance, the store card’s higher APR may cancel out any discounts or rewards earned on store purchases.
• Deferred interest: Store cards that offer financing options typically use deferred interest. So, if you don’t pay the entire balance before the introductory period ends, you’ll be charged interest all the way back to the original purchase balance. Regular credit cards with 0% APRs only charge interest on any unpaid balance remaining after the promotion ends.

The differences between store cards and credit cards favor credit cards, and for good reason. Store cards can help people with fair credit improve their score. They also help anyone eligible for approval save money on purchases at popular stores. But their use is limited.

Traditional credit cards are better if you plan to use the card for everyday spending. You’ll reap a lot more value because you can use the card at far more places. The same is true for store cards affiliated with a particular brand. However, their rewards for purchases unrelated to that store usually are not as good.

The easiest department store credit card to get approved for is the Fingerhut Credit Account, but that’s only if you count an online retailer / mail catalog as a department store. It’s the only store card you can get with bad credit. Pretty much all other store credit cards require fair credit (640+ score) for approval. But that still means most department store credit cards are easy to get for most people. It also means you should choose your card based on where you shop the most and which offers the most rewards, since there isn’t much of a difference in their approval requirements. Let’s take a look at a few good options.... read full answer

Here are some of the easiest department store credit cards to get:

• Target Credit Card: For people with fair credit. 5% discount at Target and Target.com. Returns extended by 30 days. Free shipping. $0 annual fee.
• Walmart® Store Card: For people with fair credit. 2 - 5 points per $1 on Walmart purchases and Walmart & Murphy USA Fuel Stations. $0 annual fee.
• Kohl's Credit Card: For people with fair credit. 35% discount on your fist purchase. 5% cash back on every qualifying purchase made at Kohl. $0 annual fee.
• JCPenney Credit Card: For people with fair credit. 1 point / $1 on qualifying purchases. Discounts on select items. Annual fee: $0.
• Fingerhut Credit Account: For people with bad credit. Easiest store card to be approved for. No rewards. $0 annual fee.
• Amazon.com Store Card: For people with fair credit. 5% back in rewards cash back at Amazon.com if you have a Prime account. $10 gift card after approval. $0 annual fee.

There are plenty of other department store cards with great deals too. For example, TJX, Saks Fifth Avenue and Sears all give savings and perks that are worth looking at. Just remember that department store credit cards can only be used at the store that issued them (and sometimes affiliates), so apply for a card from somewhere you know you’ll shop on a regular basis.

Some of the easiest store credit cards to get are the Fingerhut Credit Account, the Montgomery Ward Credit Account, and the Amazon.com Secured Credit Card. These cards accept people with “bad” credit, and they all have $0 annual fees.

Here are the easiest store credit cards to get:

This is one of the easiest store credit card to get because you can get approved with bad credit. Things you can buy with the Fingerhut Credit Card include clothing, shoes, electronics, garden supplies, tools, and more. Plus, this card will build your credit - it reports to ... read full answermajor credit bureaus monthly.

This card is available to people with bad credit. The Montgomery Ward Credit reports to credit bureaus, so it will help you build your credit. The card also offers the Buy Now, Pay Later feature with low monthly payments starting from $10/month. Plus, there’s an opportunity for credit limit increases.

This credit card is available to people with bad credit. Cardholders with an eligible Prime membership are instantly upgraded to the Amazon Prime Store Card Credit Builder and they can earn 2% cash back on their purchases. The card also reports to the three major credit card bureaus.

Although store credit cards usually can’t be used anywhere except for the store they’re branded with, they are a great way to save on some of your biggest purchases. They’re also much easier to get than most rewards cards. Plus, if the card reports to the major credit bureaus every month, you can build up your credit score.