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As you go about your Black Friday and Cyber Monday shopping, you might be drawn to store cards. These credit cards frequently come with enticing offers and immediate discounts, which can be tempting if you’re looking to save on your purchases.
After all, a recent National Retail Federation holiday survey found consumers plan to spend an average of $890.49 per person this year on holiday gifts, food and decorations, the second-highest in the survey’s history.
Store cards can save you money in the moment, but they can easily hurt you financially if you’re not responsible. And while you shouldn’t make these types of financial decisions at the checkout counter, it’s worth considering if a store card could work for you, especially if you’re already planning on spending more this season.
CNBC Select takes a look at whether a store card is the right choice for you, as well as some more flexible alternatives.
What is a store card?
Store cards, also referred to as retail cards, are very similar to traditional credit cards, but with a few key differences. While standard credit cards can be used at almost any retailer, store cards are typically categorized as “closed-loop” or “open-loop.” Closed-loop means they can only be used at the partnered store, while open-loop can be used outside the specific store as well. This can be limiting, but store cards often offer strong rewards and perks when shopping at the retailer.
Additionally, store credit cards generally have higher-than-average interest rates compared to traditional credit cards. They can also be easier to get approved for. Although these cards can be used to build credit, you’ll need to be extra careful to pay on time and avoid the impacts of those high APRs.
When are store cards useful?
Conventional credit cards often have more favorable financial terms and earn stronger rewards compared to store cards, but there are niche times when a retail card could make sense for you.
“One is when you get a nice discount off a big purchase,” says Bankrate senior industry analyst Ted Rossman.
Store cards that provide a set percentage off your order when signing up could work if you’re making a large enough purchase this Black Friday or Cyber Monday.
“If you’re saving 20% on a bunch of pricey kitchen appliances or electronics, that can really add up,” Rossman says. But he cautions against applying for cards that only offer $10 or $20 coupons to an already relatively cheap order.
Store cards can also provide some great value over time to dedicated shoppers who are loyal to certain stores. For instance, the OnePay CashRewards Card earns 3% cash back on in-store and online Walmart purchases, or up to 5% back if combined with a Walmart+ membership.
The OnePay CashRewards Card is a great option to pair with a Walmart+ membership, earning elevated rewards and having no annual fee.
- Up to 5% back at Walmart with a membership
- No annual fee
- No foreign transaction fees
- Only earns 1.5% cash back on purchases outside of Walmart
- Limited redemption options
If you do more of your shopping at Target, the Target Circle™ Card provides 5% off in-store and online Target purchases, with the exception of gift cards and a few other similar items.
Target Circle™ Card
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Rewards
5% discount at checkout on most purchases in-store and at Target.com
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Welcome bonus
Save $50 on a future qualifying purchase of $50 or more when approved for a Target Circle™ Credit or Debit Card.
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Annual fee
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Intro APR
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Regular APR
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Balance transfer fee
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Foreign transaction fee
Pros
- No annual fee
- Instant 5% discount at checkout
- Free two-day shipping on most items
- Extra 30 days for returns
Cons
- High variable APR
- Small intro bonus offer
For online shoppers, the Prime Visa (see rates and fees) earns 5% back at Amazon.com, Amazon Fresh and Whole Foods Market (with an eligible Prime membership). Plus, as a welcome bonus, it comes with an automatic $250 Amazon gift card upon approval.
The Prime Visa is only available to Amazon Prime members ($139 for an annual membership and $14.99 for a monthly membership) but is very rewarding for Amazon purchases.
- High rate of return at Amazon and Whole Foods
- Easy-to-earn welcome bonus
- Requires an Amazon Prime membership
- If you choose the promo APR you won’t earn rewards on those purchases
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Limited-Time Offer: Get a $250 Amazon Gift Card instantly upon approval exclusively for Prime members
- Best Amazon Gift Card offer for Prime Visa
- Earn unlimited 5% back at Amazon.com, Amazon Fresh, Whole Foods Market and on Chase Travel purchases with an eligible Prime membership
- Prime Card Bonus: Earn 10% back or more on a rotating selection of items and categories on Amazon.com with an eligible Prime membership
- Earn unlimited 2% back at gas stations, restaurants, and on local transit and commuting (including rideshare)
- Earn unlimited 1% back on all other purchases
- No annual credit card fee
- No more waiting. Redeem daily rewards at Amazon.com as soon as the next day
- Member FDIC
Balance transfer fee
Either $5 or 4% of the amount of each transfer, whichever is greater
For some of these cards, like the Target card, the level of rewards is “likely more than you would earn using any other card,” says Rossman.
If you manage your spending and pay off the card each period, you can rack up meaningful rewards related to the store. All of these cards are open-loop, but they don’t earn the strongest rewards outside of their specific stores.
What are the disadvantages of a store card?
Store cards can unlock some steep discounts and helpful perks, but they have a few negatives to be aware of.
“Store credit cards charge really high interest rates,” Rossman says. This is evident as the average interest rate for store-only cards (closed-loop) is 31.64%, while the average rate for retail cards in general sits at 30.14%, according to Bankrate’s 2025 Bankrate Retail Cards Study. That’s almost 10% higher than traditional credit cards. These higher APRs can trap people in debt cycles, where interest is piling up faster than they can pay down their balance.
It’s also more common for retail cards to offer deferred interest promotions, which is vastly different from 0% or no interest. With deferred interest, if you don’t pay off the full balance by the due date, the card retroactively charges all of the interest that would have accrued, Rossman explains, making these offers much riskier.
Rossman also cautions against applying for too many cards at once. Although this isn’t a problem exclusive to store cards, it can be tempting to take out multiple lines of credit, especially around the holidays. This can hurt your credit score and potentially lead you into some bad financial habits.
Alternative credit cards for shopping
If you’d prefer credit cards that aren’t tied to a specific store or want to earn stronger rates on more generalized purchases, here are a few non-store card alternatives.
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.
- High flat-rate return on purchases
- Intro-APR for purchases and qualifying balance transfers for a year
- No annual fee
- Cell phone protection
- Has a foreign transaction fee
- Limited redemption options unless you pair it with a Wells Fargo card that allows point transfers
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.74%, 24.74%, or 28.74% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Balance Transfer Fee
3% intro for 120 days from account opening, then up to 5%, min: $5
Foreign Transaction Fee
* Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
The Blue Cash Everyday® Card from American Express has no annual fee and earns bonus rewards on a wide range of common expenditures.
- Up to $264 in streaming service and meal kit credits every year (subject to auto renewal)
- High cash-back rates in popular spending categories
- No annual fee
- The best bonus cash-back categories are capped
- Has a foreign transaction fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
- No Annual Fee.
- Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 19.74% to 28.74% variable APR.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don’t have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you’ll still earn rewards on purchases the way you usually do.
- Earn 3% cash back at U.S. supermarkets, 3% cash back on U.S. online retail purchases, 3% cash back at U.S. gas stations, on eligible purchases for each category on up to $6,000 per year in purchases (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $7 monthly statement credit after using your enrolled Blue Cash Everyday® Card for a subscription purchase, including a bundle subscription purchase, at Disneyplus.com, Hulu.com, or Plus.espn.com U.S. websites. Subject to auto-renewal.
- Apply with confidence. Know if you’re approved for a Card with no impact to your credit score. If you’re approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
If you’re looking for an option that’s more available to those with lower credit, the Capital One Quicksilver Secured Credit Card earns 1.5% cash back on all purchases. Its rewards rate is slightly lower than the Wells Fargo card’s 2% cash rewards rate, but the Quicksilver Secured is available to those with limited to fair credit, as long as you can make at least a $200 deposit.
The Capital One Quicksilver Secured Credit Card is an unusually rewarding card because you earn 1.5% cash back on every purchase.
- Simple rewards structure with no caps or categories to track
- Available if you have fair credit
- High APR
- Has an annual fee
Rewards
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- Earn unlimited 1.5% cash back on every purchase, every day
Balance transfer fee
- $0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you
FAQs
What is Comenity Bank?
Comenity Bank, a subsidiary of Bread Financial, offers a number of co-branded cards for retailers, sports teams and more.
What credit score do you need for a store card?
While it will vary from card to card, store cards often have lower credit score requirements compared to traditional cards. Typically, you may be approved with fair or good credit.
Can store cards hurt your credit score?
Yes, if used irresponsibly, store credit cards can hurt your credit score as much as conventional credit cards. As a rule of thumb, pay off your balance on time and in full each month to avoid interest charges and keep your credit in good shape.
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Meet our experts
At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Ted Rossman, Senior Industry Analyst of Credit Cards at Bankrate.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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For rates and fees of the Blue Cash Everyday® Card from American Express, click here.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
