What's the difference between a store card and a credit card?

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.

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. 

Hi! Thank you for writing! I should start by defining what I am thinking is the difference between the two kinds of cards you are asking about to make sure I give you the right answer. Both are cards that extend credit to the user; in other words, using either is a promise to pay later for stuff you buy today. I’d define credit card as a method of buying pretty much anything anywhere from anybody – Mastercard, Visa, Amex, etc, issued by entities like CapitalOne, USAA, etc. I think of a store card as credit that lets you purchase only the merchandise at one particular place like Macy’s, Cabela’s, Kohl’s, Target, etc.

ALL your credit and the manner and amount you use it factors into your credit score. Credit bureaus see unsecured borrowing in the same light no matter who issues the card. Paying any of these credit debts late will hurt your credit score.

Is it a good idea to have store cards? Or should you just stick with major credit cards? Personally, I find store cards useful for the stores I regularly shop at because of the coupons, discounts, notices, and specials that these cards give you. I have a store card for Belk, a department store here in the south that I like to shop at. I also have one for Macy’s. These stores give extra discounts and coupons to their cardholders which I find useful. But you need to make sure you keep track of the bills and pay them off.

Hope this answers your question! If not, please write back! Kathy.

Store cards only work at the stores they’re affiliated with. Credit cards can be used anywhere. Their rewards differ similarly too. Store cards give rewards geared toward whatever store’s logo is on the card – when they have rewards, that is. Normal credit cards with rewards usually aren’t as themed or restrictive.