Store credit cards, or retail credit cards, are not typically the most financially-friendly options for consumers. Generally, store cards earn you 3-4% back when you shop at [insert guilty pleasure here] and maybe 1% elsewhere. But wouldn’t you rather earn 3% back on all department store spending? Or even 5-10% back by shopping through an extensive online mall?
Store credit cards also tend to come with really high interest rates and terms more befitting a subprime loan, so they’re a no-go if you carry a balance at all. And beware the cards that offer “special financing:” if you don’t pay off your debt within the promo period, you can be slapped with retroactive interest charges, accumulated all the way back from the purchase date. For most purposes, a non-store-branded credit card will serve you better.
We’ll go category-by-category and break down each store’s card, including its rewards rate for in-store purchases, any other bonuses you get (a discount on your first in-store buy is common), the rewards rate for all other purchases, the interest rate, and any applicable annual fees. And in each case, there’s usually an all-purpose credit card that’ll get you a better rate and/or a broader set of bonus categories, so we present those as alternatives.
Editor’s picks for best store credit cards:
Best for Amazon
The Citi Forward® Card gives you 5% back when you shop at Amazon.com (that’s better than the Amazon credit card!) Plus, it gives 5% on bookstores, movies, music, and dining out, and 1% elsewhere. It has no annual fee, and gives one of the best rewards rates for socialites and shoppers.
Best for clothing and fashion (gas, too):
The AmEx Blue Cash Preferred gives 3% back on all department store spending – it’s like having a ton of apparel-branded credit cards all at once. Plus, it gives 3% back on every dollar you spend on gas, with no caps or thresholds. Oh, and 6% back on groceries. Between the two, that makes the Blue Cash Preferred one of the best options for anyone who spends a lot on clothing and/or gas and/or food. It’s got a $75 annual fee, which is more than made up for by the increased rewards rate and a $100 cash back signup bonus.
Actually, one of the best features of the Blue Cash is the unlimited 6% back on groceries. This means that you can go to your local Safeway and load up on gift cards to pretty much anywhere – Amazon, Starbucks, iTunes, Old Navy, what have you. Since you pay for those gift cards at the cash register, you earn 6% rewards on them, so with a little legwork you can basically get 6% cash back at every place that sells gift cards at supermarkets. That’s a pretty darn good deal.
Best for electronics and online shopping:
The Chase Freedom gives a $200 cash back bonus plus 5% back on bonus categories that change quarterly and 1% back elsewhere, but that’s not why it tops this category. It gives you access to the Chase Ultimate Rewards Mall, which gives you somewhere around 1-10% extra when you click through from the mall to another store’s website. This means you earn what amounts to 4% back on Apple.com, 11% at BananaRepublic.com, and 4% at REI.com. It also has no annual fee.
Best for special financing offers:
Generally, the store credit card offers for special financing aren’t that good. They tend to have retroactive interest rates, meaning if you get special financing on a $5,000 purchase and pay off all but $1 in the allotted time, you’ll still be charged interest on the whole $5,000. You’ll see your remaining debt skyrocket if you slip up. On the other hand, the Citi Simplicity gives you 18 months interest-free, and won’t charge you retroactive interest. If you have $1 of debt, you’ll only accrue interest on that $1. What’s more, unlike almost any store credit card, it charges no late fee and no penalty interest rate. It goes without saying that it has no annual fee.
The matchups: store credit cards by category
Online shopping
Because there’s only one card that truly fits the category, we’ll be brief. The Amazon credit card offers 3% back on purchases from the online marketplace. The Citi Forward® Card, on the other hand, pays 5%. Both cards pay 1% on other purchases, but the Citi Forward® Card gives 5% back on its other bonus categories while the Amazon only gives 2%.
| Card | In-Store Rewards | Other Perks | Base Reward Rate | APR |
|---|---|---|---|---|
| Citi Forward® Card | 5% | 5% on dining, movies, music, bookstores | 1% | 12.99%-22.99%* |
| Amazon.com Visa | 3% | 2% on gas, dining, and drugstores | 1% | 13.24%-21.24% |
*variable
Apparel store-branded credit cards
There are nearly as many of these types of cards as there are stores to choose from. But the ideal might be the Blue Cash Preferred, which gives rewards at all clothing stores, not just one. While it’s tempting to go with the free shipping and/or bonus rewards of a branded store credit card, remember that the Blue Cash Preferred offers a lot more flexibility, and rewards spending outside of just clothes.
The Kohl’s charge card actually offers a pretty good deal – 12 times a year, you get 15-30% savings on all your purchases, even on merchandise that’s on sale. You can only use it in-store, and of course the APR is high, but it gives a good value if you shop there frequrntly.
| Card | In-Store Rewards | Other Perks | Base Reward Rate | APR |
|---|---|---|---|---|
| AmEx Blue Cash Preferred | 3% in all department stores | 6% on supermarkets, 3% on gasoline | 1% | 17.24%-21.24%, $75 annual fee |
| American Eagle Visa | 4% | 15% off first purchase, 20% birthday coupon | 1% | 23.99% |
| Bloomingdales AmEx | 3% if you spend $1k in-store annually, otherwise 0% | 10% off next 2 days, buy 5 shoes get 6th free, free shipping for $150+; plus tiered rewards | 1% if you spend $1k in-store annually, otherwise 0% | Not available |
| Brooks Brothers Platinum MasterCard | 4% | 15% off first purchase | 1% | 14.24%-21.24% |
| Gap credit card (Gap, Old Navy, Banana Republic) | 5% | 15% off first purchase, earn rewards with affiliates | 1% | 23.99% |
| Kohl’s Charge Card | 15-20% | 15% off first purchase | N/A | 21.9% |
| Nordstrom’s Visa Signature | 2% | Tiered rewards | 1% | 14.9%-22.9% |
| Saks Fifth Avenue MasterCard | $0-$5k: 2% $5,001-$10k: 4% $10k+: 6% |
3% at spas and salons, 2% on groceries; 10% off first purchase, tiered benefits | 1% | Not available |
| Sears credit card | Up to 1% on “eligible purchases” | “Exciting offers” every month | N/A |
Electronics
Apple and Best Buy both offer two credit cards: one that earns rewards, and another intended for financing. The Best Buy credit card for financing earns some rewards, but can only be used in-store. Apple’s does not. The rewards-earning Apple card, which can be used anywhere, has a pretty pathetic rewards rate at 2%, and Best Buy’s is a resounding, “eh.” We suggest instead the Chase Freedom, which in addition to giving 5% back on rotating bonus categories, 1% elsewhere and $200 on signup, gets you access to the Chase Ultimate Rewards Mall. If you click through from the mall to another online store, you get an additional 1-10% back. For example, shop at Apple.com and you’ll get what amounts to 4% back, plus 4% back at Sony.com, 2% at BestBuy.com and 6% at SharperImage.com. You’re getting an all-inclusive electronics bonus, for no annual fee. The online mall has other categories too, of course, from food to clothing to outdoor gear.
| Card | In-Store Rewards | Other Perks | Base Reward Rate | APR |
|---|---|---|---|---|
| Chase Freedom | 4% at Apple.com and 2% at BestBuy.com through online mall | $200 cash back, 5% on rotating categories, with limits, unlimited 1% elsewhere | 1% | 15.99%-22.99% |
| Apple (Barclaycard iTunes Rewards Visa) | 2% | $10 iTunes gift card on 2nd purchase | 1% | 16.99%-22.99% |
| Best Buy Reward Zone MasterCard** Has special financing offer similar to store-only |
4% | 2% on dining and groceries | 1% | 17.99%-21.74%, $0-$59 annual fee |
Gas Credit Cards
While some station-specific gas cards give you up to 5% back, you’re still stuck at just one station. This means that if, say, BP charges $4 a gallon but the Valero across the street only charges $3.90, you’ll still be stuck with the BP station. You get a lot more flexibility with a non-branded gas credit card. Pretty much alone among gas cards, the Costco AmEx gives 3% back on gas pumped anywhere, including at Costco itself. Another AmEx offer, the Blue Cash Preferred, gives 3% back at gas stations as well as 6% on groceries and 3% on clothing. The PenFed Platinum Cashback Rewards gives an unlimited 5% back at any gas station but Costco. It is, however, quite hard to qualify for.
| Card | In-Store Rewards | Other Perks | Base Reward Rate | APR |
|---|---|---|---|---|
| AmEx Blue Cash | 3% on gas pumped anywhere | 6% on groceries, 3% on clothing | 1% | 17.24%-21.24% |
| BP Credit Card | 5%, up to $500 in gas purchases per month | 2% on travel and dining, double rewards in first 60 days | 1% | 15.24%-19.24% |
| Gulf MasterCard | 3% | 1% | 14.99%-23.99% | |
| Shell Credit Card | 0% | 10% on many hotels, 5% on any US airline | 0% | 24.99%, $25 annual fee |
Megastore branded cards
The Target credit card actually isn’t terrible – 5% rewards is unusually high, and Target has such a wide variety of products that you can earn discounts on clothes, cleaning supplies, garden gnomes, whatever. However, it’s only useable in-store.
Our top pick, though, is still the AmEx Blue Cash Preferred (yes, we’ve mentioned it before, multiple times. But it deserves the recognition). It gives 6% on supermarkets and 3% on gas and department stores, which covers a lot of Target and Walmart’s bases. Unlike Walmart, it has no spending threshold, so you earn the full rewards with the first dollar spent.
| Card | In-Store Rewards | Other Perks | Base Reward Rate | APR |
|---|---|---|---|---|
| American Express Blue Cash Preferred | 3% in all department stores | 6% on supermarkets, 3% on gasoline | 1% | 17.24%-21.24%, $75 annual fee |
| Target REDCard (in-store only) | 5% | Extra 5% off one day if you fill 5 prescriptions | N/A | 13.25%-22.9% |
| Walmart Credit Card | 0% | 5 cent/gallon discount on Walmart gas (falls to 3 cents in 2012) | $0-$1,500: 0.25% $1,500-$3k: 0.5% $3k+: 1% |
22.9% |
Special financing offers
These cards offer an interest-free period for purchases above a certain amount. However, be very careful: retroactive interest rates apply. If you don’t pay off your debt before the end of the promotional period, you’ll be charged interest that has been accruing since the day you took out the financing offer.
Most 0% interest rate credit cards don’t have that system: if you haven’t paid off your debt by the end of the intro period, you’ll only pay interest on the remaining amount. The Citi Simplicity offers 0% purchase and balance transfer APR for 18 months (longer than any of the cards listed below), has no minimum purchase amount, and doesn’t charge retroactive interest rates. Plus it’s one of the only credit cards out there that charges no late fees or interest rate penalties.
| Card | No-Interest Period | APR | Retroactive Interest? | Rewards |
|---|---|---|---|---|
| Citi Simplicity | 18 months | 16.99% | No, and no late fees or penalty APR | None |
| Apple (Barclaycard Financing Visa) | 6 months (<$999) 12 months ($1k+) |
22.9% | Yes | None |
| Best Buy Reward Zone (store only) | 18 months | 25.24% or 27.99% | Yes | 2% in-store |
| Home Depot Consumer Credit Card (store only) | 6 months with purchase of $299 or more | 17.99%-26.99% | Yes | 10% off first purchase or 24 months interest-free financing |