5 Store Credit Cards Every Smart Shopper Should Know About

When used correctly, store credit cards help you rack up rewards points, save cash, and unlock exclusive perks at your favorite stores. This detailed guide will break down how exactly these cards work and how to use them to your advantage. Plus, you’ll learn our picks for the top 5 best store credit cards based on how you like to shop.

Many of the cards below require good to excellent credit. Need help boosting your score? Check out MoneyLion Credit Builder Plus: A membership dedicated to helping you build credit health. Proven to help more than half of our members raise their score by up to 27 points within the first 60 days!*

Key Takeaways

• Store credit cards reward loyal shoppers

  with cash back, exclusive discounts and perks like free shipping or birthday gifts. Top picks include the Amazon Prime Visa® for online buys, Target Circle Card® for in-store runs and Costco Anywhere Visa by Citi® for gas.

• There are two main types

  — closed-loop cards work only at one retailer, while open-loop cards run on Visa or Mastercard networks and work almost anywhere.

• Apply only if you shop there often

  and can pay your balance in full each month, since store cards often carry interest rates above 25% and low credit limits.

Summary generated by AI, verified by MoneyLion editors

Types of Store Credit Cards

There are two types of store credit cards:

1. Closed-loop cards: Credit cards that can only be used at that specific store.

2. Open-loop card: Credit cards that can be used anywhere Visa or Mastercard is accepted. 

👉 11 Different Types of Credit Cards

Best Store Credit Cards

So, which store credit cards give you the best bang for your buck? We’ve outlined our top 5 picks  based on the following criteria:

1. Best for online shopping: Amazon Prime Visa

2. Best for in-person shopping: Target Circle Card

3. Best for groceries: Kroger Rewards World Elite Mastercard

4. Best for gas: Costco Anywhere Visa by Citi

5. Best for flexible rewards: Apple Card

1. Best for Online Shopping: Amazon Prime Visa

Prefer to do most of your shopping online in between Netflix episodes? If so, the Prime Visa could be a valuable addition to your wallet. This card requires a Prime membership, but has a little cousin (the Amazon Visa) for people who don’t have a Prime subscription.

The Amazon Prime card offers:

• 5% back on Amazon.com, Amazon Fresh, Whole Foods Market and Chase Travel℠ purchases

• 2% back at restaurants, gas stations, and on local transit and commuting (including rideshare)

• 1% back on all other purchases

You’ll also earn 10% back on a rotating selection of items on Amazon.

Your points are usually available as early as the next day, helping you cash in your cash back ASAP. For reference, most credit cards take a few weeks to process your points. 

Finally, enjoy plenty of built-in spending protections offered by Chase. These include travel accident insurance, lost luggage reimbursement, auto rental coverage and baggage delay insurance.

2. Best for In-Person Shopping: Target Circle Card

When it comes to retail credit cards, the Target Circle Card® is tough to beat. You’ll earn discounts on eligible Target purchases, an extended return window, and free 2-day shipping on online orders, all for no annual fee.

This card offers 5% off all eligible Target purchases (with some exceptions), in-store Starbucks orders and specialty gift cards. Plus, 2% back on dining and gas purchases, and 1% on everything outside of Target. 

Some people will even take advantage of this card’s “5% off gift cards” to get an indirect discount on other services. For example, do you Uber a lot? If so, you could theoretically buy a $200 Uber gift card for $190 (5% off) and save $10 on Uber, roughly the cost of one ride.

You’ll also enjoy an additional 30 days for Target returns and exchanges.

3. Best for Groceries: Kroger Rewards World Elite Mastercard

The Kroger Rewards World Elite Mastercard® is one of the best grocery store credit cards out there, with an immense network that includes Dillons, Food 4 Less, Fred Meyer, Ralph’s, King Soopers and more. 

This card offers up to 5% cash back on Kroger Pay and mobile wallet purchases, 2% cash back at physical stores, and 1% cash back on all other purchases. You’ll also earn 2x fuel points and free next-day delivery when you apply for a Boost Essential Membership.

4. Best for Gas: Costco Anywhere Visa by Citi

The Costco Anywhere Visa by Citi® is one of the best cards on the market for maximizing money spent on gas. While this card requires a Costco membership (starting at $65 annually), it rewards you at gas pumps across America, not just Costco ones.

This card offers:

• 5% back on Costco gas stations and 4% back on other gas stations (up to $7,000 in combined annual spending, then 1%)

• 3% cash back on restaurants and eligible travel, including Costco Travel

• 2% cash back on all Costco purchases

• 1% cash back on all other purchases

This card can also double as your Costco membership card, so you won’t need to carry both cards around in your wallet.

5. Best for Flexible Rewards: Apple Card

Looking for store credit cards that can be used anywhere and are especially mobile-friendly? The Apple Card® might be your best bet. This titanium card offers substantial rewards, special financing for new Apple products, and cash back for using Apple Pay.

You’ll earn:

• 3% cash back on Apple Pay purchases at Apple, Nike, Uber/Uber Eats, Walgreens, Duane Reade, Booking.com, ChargePoint, Exxon Mobil, Hertz and Ace Hardware

• 2% back when you use Apple Pay

• 1% back when you use your physical Apple Card

When Does it Make Sense To Get a Store Credit Card?

With so many cards, it can be tough to know when a store credit card is right for you. Here are the signs to watch out for:

💡 You frequently shop at a specific retailer: If you’re constantly shopping at stores like Target or Amazon, then applying for their store card can be an easy way to earn cash back on money you’re already spending. 

💡 You want to build or rebuild your credit: Store cards are generally easier to qualify for, making them a good entry point for those with limited or poor credit history. As long as you pay on time and keep your balance low, signing up for a store credit card should help improve your credit score.

💡 You’re offered a generous sign-up discount: Many store cards offer an instant discount for signing up, which can help reduce the cost of a large purchase. Just be sure the long-term benefits of the card outweigh any ongoing fees or high interest rates.

💡 You’re able pay your balance in full every month: Store cards often come with higher interest rates, so carrying a balance can be costly. If you’re in a position to pay off your card in full each month, then you can enjoy the rewards without racking up high-interest debt. 

💡  You qualify for exclusive financing options: Some store credit cards offer special 0% APR deals on large purchases, giving you time to pay without interest. This can be useful when buying big-ticket items like expensive electronics or furniture.

Pros of Store Credit Cards 

✅ Exclusive cardholder promotions: You may receive short-term promotions like exclusive cardholder-only sales, birthday gifts, free shipping, or other perks.

✅ Immediate discounts on purchases: You’ll often receive instant discounts that can help you save while checking out. 

✅ Rewards and cash back on store purchases: You’ll earn significant cash back, usually between 3% and 5%, on your store purchases. 

✅ Easier approval than traditional credit cards: Since they’re typically fairly easy to get approved for compared to regular cards, store credit cards can also be a viable way to build your credit and get spending flexibility. 

✅ No annual fees: Most store credit cards don’t charge annual fees, making them cheaper to own than many premium cards. However, cards like the Amazon Prime Visa or Costco Citi Card require a membership subscription to their respective program.

Cons of Store Credit Cards 

Here are the cons of signing up for a store credit card:

❎ High interest rates: Store credit cards often come with higher interest rates than normal cards, which makes it expensive to carry a balance. 

❎ Limited usability outside the store: If you sign up for a closed-loop card that can only be used in-store, then you won’t find much use for it outside of that retailer.

❎ Low credit limits: Store credits typically offer fairly low credit limits, especially if you have a low credit score or limited credit. 

❎ Complicated rewards programs: Rewards and cash back are great, but not when it’s a hassle to collect them. Watch out for cards that make you jump through hoops to claim your rewards. 

❎ Can harm credit score if mismanaged: Store credit cards are easy to get approved for and encourage you to spend more, two factors that make them easy to mismanage.

Alternatives To Store Credit Cards

By this point, you should have a good idea of whether or not a store credit card is right for you. If you’re not loyal to any particular big-box retailer, then you might want to explore these options:

🔄 General rewards credit cards: These cards offer spending flexibility and a wide range of perks. Check out MoneyLion’s picks for the top credit cards.

🔄 Secured credit cards: These cards help you build credit by linking your spending limit to a security deposit. Learn about the 9 best credit cards for bad credit. 

🔄 Frequent-buyer rewards: Instead of a store credit card, see if your favorite retailer has a loyalty program. This can help you enjoy similar benefits without the stress of applying for and managing a new credit card.

FAQs

What store credit cards are easy to get?

A few easy approval store credit cards include those from big-box stores like Target or Kroger. Cards that require a membership, like Amazon Prime or Costco, typically require higher credit scores.

Do store credit cards build credit?

They can, as long as your card reports to the credit bureaus and you consistently pay off your balance on time.

Can you use store credit cards anywhere?

It depends on the card. Some store credit cards can only be used at the issuing retailer, while co-branded cards (like a Target Mastercard) can usually be used anywhere the network (Mastercard, in this case) is accepted.

Are store credit cards bad?

Store credit cards often come with high interest rates and low limits, so it’s best to use them carefully and pay off the balance in full each month.

Are store credit cards worth it?

They can be worth it if you shop at the store often and take advantage of exclusive discounts and rewards. Just be sure that the benefits outweigh the costs.

Key Terms

• Store credit card: A store credit card is a card tied to a retailer that may offer discounts or rewards, but it often has higher annual percentage rates and limited use.

• Closed-loop card: A closed-loop card only works at a specific store or group of stores, not anywhere credit cards are accepted.

• Open-loop card: An open-loop card carries a payment network like Visa or Mastercard and can be used anywhere that network is accepted.

• Annual percentage rate (APR): APR is the yearly cost of borrowing on a credit card, including interest and certain fees.

• Credit score: A credit score predicts how likely you are to repay debt on time based on information in your credit reports.

Sources:

• Consumer Financial Protection Bureau: What is a credit card interest rate? What does APR mean?

• Consumer Financial Protection Bureau: What is the difference between a loan interest rate and the APR?

• Consumer Financial Protection Bureau: What is a credit score?

• Consumer Financial Protection Bureau: Prepaid cards key terms

• Consumer Financial Protection Bureau: Choose the right prepaid card

Summary generated by AI, verified by MoneyLion editors