What are Store Credit Cards?

Store Credit Cards are some of the most expensive credit cards on the market.  They are usually offered by large store chains and are branded with the name of the store.  They are often offered to customers at the point of sale and they tend to offer discounts on the store’s products, and if chosen wisely these can be some of the best rewards programs.

Store cards offer convenience.  Unlike standard credit cards, which usually are applied for by post, store cards can be applied for while in store and rarely require an extensive credit check. There is also little chance to compare the cards with other credit options, as it is done in a short space of time outside the home.

Many of the discounts attached to the card can be got immediately after application, and this often means that there are discounts for items that have already been chosen, giving the shopper the sense that they have a bargain.   They are also routinely offered by store staff when items are being paid for.

Many of the largest internet brands have also started offering the equivalent of store cards, including the Apples i-Tunes store and Amazon.  There offer similar discounts to more standard store cards, although the interest rates, terms and conditions can be better, as they are more likely to be compared with other credit card offerings.

It used to the case that store cards would only allow spending within the stores themselves.  This is now very rare as many large credit card providers such as Visa have taken over the provision of store cards, allowing the shop to brand and sell the cards to their customers.

As store cards are one of the more profitable kinds of cards due to their high interest rates and low promotion costs, credit card companies are willing to share a large part of the revenue that they make with the stores themselves.  The entry of credit card companies into this market has meant that many smaller chains are now offering their own cards.

Store cards are often a borrower’s first credit card, as they tend to be offered to shoppers over the age of 18 before the banks start selling products to them and they are very convenient.  Some stores have started to integrate their rewards program with their store cards, although due to consumer resistance they have also had to offer rewards cards separate from credit cards.

Store cards have some of the highest rates of interest in the market and are rarely among the best buys for new spending or balance transfers.  Store cards do have some of the best rewards programs by monetary value; however the range of rewards offered is limited.