Best Store Credit Cards For 2021

If you’re a frequent shopper at your favorite stores, you may have considered store-branded credit cards. The benefits are certainly appealing: store credit cards tend to have lower approval criteria than general purpose credit cards, and the more you spend at the store, the more perks you can unlock.

But which stores offer the best credit cards, and what perks can you expect if you’re approved? In this article, we’ll explore 2021’s best store credit cards, including home improvement, retail and grocery store cards.

What Is A Store Credit Card And What Can It Be Used For?

Store credit cards are intriguing, as they often offer better rewards for everyday spending than general purpose cards. And although you may assume these cards are more limited in when and where they can be used – that’s not always the case.

This is because there are two types of store credit cards: open-loop and closed-loop. Open-loop credit cards have the Visa or Mastercard logo in the corner, and although you earn the most rewards by using these cards in the store they’re provided by, they can also be used anywhere that type of card is accepted. Closed-loop cards, on the other hand, can only be used in store, on the store’s website, or with any affiliate companies, if applicable.

When considering a store credit card, it’s important to understand whether the card is open or closed-loop to ensure it’s a good fit for your spending habits. Open-loop cards typically have higher standards, meaning it may be harder for people with average or below average credit to get approved. Closed-loop cards are more limited in where they can be used, but if you spend enough money at a specific retailer, these cards can still be beneficial and often easier to obtain.

Best Store Credit Cards For Home Improvement

Another important step in choosing a store credit card is deciding what type of spending you’re looking to cover – as how much you spend will directly impact how much you save.

f you recently moved into a new home that’s in need of work, or if you’re a fan of do-it-yourself home projects, home improvement credit cards could be a good option. Let’s take a look at some of the best credit cards for home improvement on the market!

Amazon Prime Rewards Visa Signature Card

Online shopping has grown in popularity over the last few years – particularly during the COVID-19 pandemic – with Amazon leading the charge. For Amazon Prime members, the Amazon Prime Rewards Visa Signature Card can be an additional resource to help you save on everyday purchases – including your next home improvement project, as many of the materials you may need are available online.

With zero annual fees, an intro APR of 0% for the first 6-24 months, and a $70 Amazon gift card as a welcome bonus, there’s no shortage of savings here. Earn 5% cash back on all Amazon.com and Whole Foods purchases, 2% back at restaurants, gas stations and drugstores, and 1% back on all other purchases.

Average credit score needed for approval: 690 or higher

Pros:

• Hefty cash back potential for frequent Amazon shoppers
• Open-loop card can be used anywhere Visa is accepted

Cons:

• High APR of 14.24-22.24% Variable
• Requires Amazon Prime membership to qualify 

Lowe's Advantage Credit Card

If you prefer to shop for tools and materials in store, the Lowe’s Advantage Credit Card may be a better option, although it can also be used on the Lowe’s website. This card comes with no annual fees, an intro APR of 0 to 0.99% for 6-84 months and a welcome bonus in the form of a 20% discount. After the welcome period, a discount of 5% is offered on all eligible in-store and online purchases.

But the savings don’t stop there! With unique payment plans in place, you can lower the upfront costs of your next large home improvement project. Pay over 6 months with Lowe’s Special Financing for purchases over $299 or set up an 84-month fixed payment plan, which functions similarly to a personal loan, for purchases over $2000.

Average credit score needed for approval: 690 or higher

Pros:

• Includes special financing for larger home improvement projects

Cons:

• High APR of 26.99% Variable
• Closed-loop card can only be used at Lowe’s
• No cash back rewards

Home Depot Consumer Credit Card

If you prefer Home Depot – don’t fret! The Home Depot Consumer Credit Card is another solid option. This card also comes with no annual fees and upon approval, you can enjoy a welcome bonus of $25 off your first purchase of $25-$299, $50 off your first purchase of $300-$999, and $100 off your first purchase of $1,000 or more! Plus, with deferred interest options available, you can avoid paying interest if your balance is paid in full within 6 months on purchases of $299 or higher.

Average credit score needed for approval: 640 or higher

Pros:

• The more you spend, the more you can save with tiered welcome bonus structure

Cons:

• High APR of 17.99-26.99% Variable
• Closed-loop card can only be used at Home Depot
• No cash back rewards
• Deferred interest is not the same as waived interest. Although it’s possible to avoid paying interest if your account is paid off in full by the six-month mark, not paying off the card can result in some seriously high fees – meaning if you qualify for a card with a true 0% introductory APR offer, that may be a safer choice.

Best Retail Store Credit Cards

Picture this: You walk into your favorite retailer with the intention of buying a few items but walk out with half the store in your cart. Sound familiar? If you’re a frequent spender, specific retail store credit cards may lead to cash back and rewards on purchases you’re already making. To reap the benefits, consider the following as the best retail store credit cards.

Target REDcard(TM)

The Target REDcard is widely considered one of the most elite retail store cards on the market. With the store’s cult following, it’s no surprise that this card is in high demand. It boasts no annual fee and its users can capitalize on a 5% discount on all in-store and online purchases, including in-store Starbucks locations, specialty gift cards and additional savings on clearance items.

Average credit score needed for approval: 690 or higher

Pros:

• Free shipping on most online purchases
• Additional 30 days for returns and exchanges

Cons:

• No intro APR period offered
• High APR of 22.90% Variable
• Closed-loop card can only be used at Target. The open-loop Mastercard version of this card may be a better option if you want to be able to spend elsewhere.

Kohl’s Charge Card

Kohl’s has a reputation for rewarding frequent shoppers with extra cash, but the savings can go one step further with the Kohl’s Charge Card, which comes with no annual fee and a welcome discount of 35% on your first purchase.

Take advantage of 12 annual discounts, exclusive sales and special offers exclusively given to cardholders – and if you spend $600 in a calendar year, you’ll automatically become a lifelong Kohl’s Most Valued Customer, which comes with 6 additional annual discounts, a birthday gift and free shipping events each month.

Average credit score needed for approval: 640 or higher

Pros:

• Access to exclusive sales and discounts
• You can see if you pre-qualify without a hard pull on your credit

Cons:

• No intro APR period offered
• High APR of 27.24% Variable
• No cash back rewards
• Closed-loop card can only be used at Kohl’s

My Best Buy Visa Card

If you’re one of the first to rush out and buy the newest technology – the Best Buy Visa Card could help you save money and earn rewards for all your tech cravings. Depending on your needs, you can choose your welcome bonus and earn 10% back in rewards on your first day of purchases or pursue flexible financing for more expensive items.

After that, earn 5% back in rewards on all in-store and online Best Buy purchases, 6% back for Elite Plus members, 3% back on gas purchases, 2% back on dining purchases and 1% back on all other purchases.

Average credit score needed for approval: 640 or higher

Pros:

• Customizable welcome bonus options
• Open-loop card can be used anywhere Visa is accepted

Cons:

• No intro APR period offered
• High APR of 25.24% Variable
• Annual fee up to $59 per year
• Many offers are limited time only which can lead to confusion and disappointment 

Best Grocery Store Credit Cards

One of the biggest upsides of store credit cards is their ability to reward you for everyday expenses like your groceries. If you’re looking to save money and earn cash back on your next grocery run, these store credit cards could be a game changer!

Costco Anywhere Visa(R) By Citi

A huge perk of grocery store credit cards is that many stores also feature their own gas stations, which can mean even more savings. With the Costco Anywhere Visa card, you can earn 5% cash back on eligible gas, including gas at Costco, for the first $7,000 per year, then 1% for the rest of the year.

Cardholders will also earn 3% cash back on restaurants and eligible travel purchases, 2% back on all online and in-store purchases, and 1% back on all other purchases. And another upside – this card comes with no annual fees! 

Average credit score needed for approval: 740 or higher

Pros:

• Lower APR than many store cards at 15.24% Variable
• Open-loop card can be used anywhere Visa is accepted

Cons:

• No intro APR period offered
• No welcome bonus
• Rewards redeemable once a year only at Costco
• Must have excellent credit to qualify
• Requires Costco membership to qualify

​Sam's Club Mastercard(R)

A Sam’s Club membership can be equally beneficial, especially when paired with the Sam’s Club Mastercard. If approved, you can earn 5% cash back on gas anywhere Mastercard is accepted, up to $6,000 per year, then 1% for the remainder of the year. Additional cash back includes 3% back on Sam’s Club purchases for Plus members and 1% for regular club members, 3% back on dining and takeout, and 1% cash back on all other purchases. This card also comes with no annual fees.

Average credit score needed for approval: 700 or higher

Pros:

• Open-loop card can be used anywhere Mastercard is accepted

Cons:

• No intro APR period offered
• High APR of 14.90-22.90% Variable
• No welcome bonus
• Requires Sam’s Club membership to qualify

Capital One(R) Walmart Rewards(TM) MasterCard(R)

Supermarket experts swear by shopping at Walmart, where you can find some of the lowest prices on groceries, home goods and more. With the Walmart Rewards MasterCard, you can save even more, starting with a welcome bonus of 5% cash back on all in-store Walmart purchases for the first 12 months.

After the first year, in-store purchases drop to 2% cash back, although you can still earn unlimited 5% back on purchases online at Walmart.com, including Grocery Pickup and Deliver. Earn an additional 2% back on restaurants and travel purchases, and 1% back on all other purchases.

Average credit score needed for approval: 670 or higher

Pros:

• Open-loop card can be used anywhere Mastercard is accepted

Cons:

• No intro APR period offered
• High APR of 17.99-26.99% Variable

The Verdict On Store Credit Cards

When compared with traditional credit cards, store-brand credit cards are sometimes limited in their usage. But with impressive cash back and rewards options, these cards may still be a great choice for shoppers who tend to spend a lot of their money in one place. Store cards also typically come with lower approval standards, making it easier for people with average and below average credit to get approved.

Any time you’re thinking of taking on debt, there are a number of factors to consider. It’s important to determine if the benefits of your new card will outweigh the potential negatives of having higher debt. But with the right card in hand, the savings may just be undeniable.