Eight Reasons to Open a Retail Card
Anyone who has shopped in a retail store has most likely gotten offered a retail card. These cards are designed to offer savings to loyal shoppers. You can usually count on getting offered the card when you check out. The retailers offer quick application and acceptance. However, these cards come with high APRs as well. This won’t be a problem if you pay off the balance each month. You can also use these cards for reasons that may surprise you. We’re going to talk about eight ways to make your card work for you. We’ll also touch on a few retail cards you can apply for.
8 Benefits to Opening a Store Retail Card Account
1. Boost Your Credit Score with a Retail Card
Retail cards are available for people with lower or fair credit scores. Once you apply and get your card, you can use it to work on your credit from fair to good. The easiest way to get a store credit card is through the Shopping Cart Trick. Start by purchasing small items and pay attention to your card’s balance. You want to pay the card off at the end of each billing period. This will stop you from getting the high APR added into your balance. It’ll also start building a history of on-time payments. This can help to bring your credit score back up slowly.
2. Discounts and Savings
One of the biggest draws is the discounts and savings you get with this card. So, if you use your card on a regular basis, this has the potential to save you money. Retailers like the Home Depot offer discounts, deferred interest, and free financing. The more you use this home improvement credit card, the better discounts you get. You’ll also get access to special days and anniversary sales. You get all of this just for having the retail card open.
3. Credit Utilization
A retail card can help you keep track of your credit utilization. Credit utilization is the amount of credit you’re using compared to how much credit you have available. You want to keep this below 20% of your credit limit. Doing so will help you raise your credit score. You don’t have to carry a balance from month to month to prove you’re keeping the balance below 20%.
4. 0% Long-Term Financing Options
Shopping around the holidays can get very expensive very quickly. Many retail cards offer you a way to purchase big-ticket items without paying interest. This will lower your overall cost, and it can stretch up to 48 months. If you’re sure you can pay the balance off before the 0% interest ends, this is a great perk. The Lowe’s retail card is a good example of this. It offers 0% APR for six months. It also offers low-interest payment plans up to seven years. Another option is the Best Buy Credit Card.
5. Use Your Retail Card Within Normal Limits
One of the biggest mistakes people make with a retail card is overspending. You should use the card as you would usually shop. So, keep careful track of your balance, and make your payments promptly. Purchase things that you would normally have bought and nothing extravagant. This way, you’ll save money on products you actually need. You also won’t get in the habit of buying things you don’t need and going into debt.
6. Rewards With a Retail Card
Aside from the discounts, many cards have additional rewards programs for their cardholders. Furthermore, these rewards can be special discounts, double or triple point deals, special access to exclusive sales, and more. High-end retail cards are an excellent example of a rewards program. Also, the more you spend and pay off, the higher rewards you become eligible for. There are cash back options, up to 1% and 2% on everyday purchases. Macy’s retail card also has a ‘Thanks For Sharing’ program that allows cardholders to donate to charity. This is automatic each time you use your card.
7. Free Offers
Many retail cards offer several freebies to its cardholders. You will usually get free shipping or store shipping if you shop online at the retailer and use your card. Target offers free shipping perks. If you have a Nordstrom retail card, you get access to free alterations. The amount per year depends on how much you spend. When you consider how quickly alterations add up, this can save you hundreds. Other retail cards offer special dining perks such as a free appetizer or a free drink. Finally, you may be able to find a store credit card that offers free gift wrapping for the holidays.
8. Low Credit Scores Can Get Approval With a Retail Card
People with lower FICO and Vantage credit scores can get retail cards. It isn’t unusual to find a card that will give you approval with a 550 or lower credit score. The high APR helps to offset the risk that the lenders take on people with lower or fair scores. This is good news, as it’ll give you access to all of the perks while you rebuild bad credit.
In conclusion, retail credit cards offer several perks for their cardholders. As long as you use them responsibly, the payoff is worth the higher APR. Before applying for store credit always consider the disadvantages of store credit cards. You get access to perks, sign up bonuses, and free offers just for having the card. It can also teach you how to use a card responsibly. You’ll learn to pay it off quickly to avoid the APR. All in all, retail cards can be a great tool to build your credit.
10 Best Store Credit Cards to Build Credit With Easiest Store Credit Card Approvals
Reviews: Most Popular Store Credit Cards in the United States
|Walmart Credit Card||Target REDcard|
|Macy's Credit Card||Nordstrom Credit Card|
|Costco Anywhere Visa||Kohl's Credit Card|
|Home Depot Credit Card||Lowe's Credit Card|
CreditFast has reviewed the best credit cards on the market. Some of the credit card offers are from our advertising partners. CreditFast has objectively reviewed the features and benefits of each credit card. We have chosen credit card offers based on our editor’s recommendations.