John S Kiernan, Managing Editor
@John
The most important thing you should know before using a store card is that it might have a feature called deferred interest. This is used by nearly half of the major retailers that offer financing. A deferred-interest store card will usually try to hook you with a 0% intro rate while hiding the fact that such a rate is far from guaranteed. If you pay your bill a day late or leave a $1 balance unpaid at the end of the 0% promotional period, the credit card company will go back and assess interest to your entire original purchase amount like the 0% deal never existed.
Here’s what to look out for before using a store card:
- Deferred interest: Make sure you read the terms and conditions very well before signing anything. If your card does have deferred interest, avoid being late on your payments and pay off the entire balance before the promotional period ends.
- Rewards and how much they’re worth: If you have to choose between rewards and a promotional interest rate, you should always pick the rewards. If the card offers miles or points, check how much they’re worth, as some cards may have more valuable rewards than others.
- The credit score required for approval: Although store cards have fairly lenient approval requirements, you could still get denied if you have bad credit.
If you’re not tied to getting a store card, there are other alternatives that could prove to offer better deals. For example, 0% credit cards are great for big-ticket purchases because they don’t use deferred interest.
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People also ask
How Do Store Credit Cards Work?
Store credit cards work like regular consumer credit cards, meaning you can make purchases on the card and then you can pay your balance off either in full, or over time. The difference is that with a store credit card, you’re typically limited to purchases within a certain store (online and in person) or multiple stores affiliated with a particular brand.
The exceptions are store cards that belong to a particular network, such as Visa or Mastercard....
read full answer by Bogdan Roberts, Credit Cards ModeratorWhat'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...
read full answer by WalletHub, Financial CompanyWhat are the best store credit cards that can be used anywhere?
One of the best store credit cards that can be used anywhere is the Amazon Credit Card because it offers 1 - 5 points per $1 spent, plus a $50 Amazon gift card upon approval ($150 for Prime members). The Amazon Credit Card can be used anywhere Visa is accepted.
Some of the Best Store Cards That Can Be Used Anywhere
- Best for Online Shopping:
- Best for Online Shopping:
- Best for Online Shopping:
- Best for Online Shopping:
Initial Bonus: $50 Amazon gift card upon approval ($150 for Prime members)
Ongoing Rewards: 3 points per $1 spent at Amazon.com, Amazon Fresh, Whole Foods Market and on Chase Travel purchases, 2 points per $1 spent at gas stations, restaurants and on local transit and commuting, and 1 point per $1 spent on all other purchases
Annual Fee: $0
Minimum Credit Recommended: Good credit
- Rates & Fees Best for Wholesale Club Purchases:
- Rates & Fees Best for Wholesale Club Purchases:
- Best for Wholesale Club Purchases:
- Best for Wholesale Club Purchases:
Ongoing Rewards: 5% cash back rewards on gas at Costco and 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter, 3% back on restaurant and eligible travel purchases, 2% back on all other Costco and Costco.com purchases, and 1% back on all other purchases.
Annual Fee: $0, with a paid Costco membership.
... read full answer by Bogdan Roberts, Credit Cards ModeratorDid we answer your question?
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