A general credit card is useful anywhere, but for many, it makes sense to get a store-specific card instead of or in addition to a regular card. If you shop at a particular store or type of store a lot, you can often save money simply by using a store credit card to make purchases you would have made anyway. And there are many store credit cards for bad credit, so a rocky credit history need not keep you from applying.
But how do store cards work? Who can qualify for one? And how do you find your best, relevant store credit card offer?
How Do Store Credit Cards Work?
In most ways, a store credit card is no different than any other unsecured credit card. Some can only be used in a particular store, but usually, that’s not the case – you can use them anywhere. And you’ll want to find a card with low interest rates, low fees, no annual fee if possible, and other basic beneficial card features.
Where the difference comes in is that you get a cash back percentage on everything you purchase in a particular store or chain of stores. Sometimes, the discount applies to a kind of store or product, such as to gas stations, hotels, restaurants, or department stores.
There may be a cash back amount that applies to all purchases made with the card, perhaps 1% or 2%, while purchases made in-store generally get as high as a 5% cash back reward. This reward can be applied to your balance, received as a check, or redeemed in gift cards under many store card systems. Enrolling for a store card may also qualify you for other special discounts and deals.
The interest rates are usually in line with other credit cards, but sometimes they can be as high as 29.99%. While this seems high, if you have a low credit score, this interest rate can be lower than many installment loans, and certainly lower than a payday loan online, where the interest rate can be as high as 499%.
Store Credit Cards For Bad Credit
Who can qualify for a store credit card? That, of course, will vary from store to store. But the good thing about many such offers is that there are many store credit cards for bad credit applicants – and they often still have reasonable or even generous terms.
Your APR and credit limit may be different based on a credit score, but all other card features and card “perks” are often the same. And by making frequent payments on your card, it’s easy to avoid all interest and to operate with a more modest limit if necessary anyway.
You can often find store cards that will not even require a credit check, so they act like a personal loan no credit check. Credit checks can drive already slumping credit scores even lower – the last thing you want to see happen. But wise use of a store card can actually improve your credit over time. This can help prevent you from having to use bad credit loans in the future as your credit score improves.
Clothing Store Credit Cards For Bad Credit
While grocery stores, online shopping exclusively, building supply and home improvement stores, and almost any store you can think of may offer a store card, one of the most popular types of store card is easily the department store credit card. And you can find many clothing store credit cards for bad credit with good terms and low hassle.
Zero-interest introductory rates, special bonuses if you spend so much within so long after opening the account, and other one-off deals may tempt you to choose a particular clothing store card. But also try to look beyond the temporary deals to more permanent features like cash back rewards or points systems and low APR.
At Bonsai Finance, we enable you to search for any and all types of credit cards, including specifically for store credit cards (of any variety) with ease. You can quickly find and compare the best store credit cards for bad credit or no credit check loans with a simple click of the mouse and apply for your new card in a matter of minutes. It really is that easy! Here are some other articles you might find interesting:
The easiest payday loans to get approved for to get your finances on track
Your guide to cash loans no credit check
How to get a boat loan with no credit check
Everything you need to know about personal loans for self-employed workers