Store Credit Cards are similar to loyalty that grant special discounts and offers to the owners of such cards. They are meant for regular shoppers who enjoy visiting a handful of particular stores, rewarding their regular purchasing of their products with various perks.
These credit cards are designed to be used at particular chains of stores and retailers, rewarding your loyalty to a specific brand name.
While some may not agree with this consumerism, as they are ultimately designed to benefit the brand more than the consumer by bringing in repeat business, there are some undeniable perks. This article will highlight some of these perks and some of the requirements for these cards.
Some of the Features and Benefits of Store Credit Cards
The primary feature of these credit cards would be the discounts they grant you. The discounts you can get are often the reason people go for them, and for good reason.
More often than not, your first purchase with the store credit card will get you a 20% discount on the total, with subsequent purchases over the next few months getting smaller discounts.
This initial big discount is perhaps the most significant benefit you get with these cards, but it is a one time offer, so it should be used wisely, such as on a large purchase.
Rewards
If you learn to use the card wisely, you can reap the maximum rewards from it without wasting its limited perks or sliding down the slippery slope of commitment to a card that doesn’t benefit you and grants all the benefits to the store instead.
Other benefits from these cards include invitations to special events which can get you more special discounts for cardholders only, as well as additional rewards, such as discounts with associate brands and stores.
Membership
You may also be entitled to other membership perks, such as being able to return items without needing to produce a receipt, free shipping, and extended return policies on some items.
As with all kinds of financial investments, it is essential to do your research into the particular plan you are potentially entering so that you know you will be benefitting and not wasting your own money.
Another bit of advice for when it comes to managing your account is to clear your balance to stop interest from drowning you in debt or sucking up all your income and outweighing your discounts.
Try to balance your discounts with the interest you accrue should you not be able to clear your balance.
Application Process and Eligibility Requirements
The application process for a store credit card is virtually the same as the application process for a regular credit card.
You can register online via a retailer’s website, such as with Target or Walmart, filling out the application form.
Eligibility
Examples of things you would include would be your full name, contact details, full address including zip code and state, as well as verify your identity, age, and income to ensure you are legally eligible for a credit card.
As for eligibility, you’ll have to be 21 years or older, or be 18 years old with a parent’s permission or a verified source of income to prove you can pay back the interest you accrue.
You will also need a Social Security number to establish your credit history and check your credentials. Lastly, you will also need a valid source of income to pay back the debt.
These are general requirements that may vary from plan to plan and from retailer to retailer. Some plans are aimed at helping those with a lower credit score build their credit score higher, while some are aimed at those with an already high credit score, for example.
Fees
The annual fees you can expect to pay on a store credit card are entirely variable, and based on the retailer you are getting the card from.
Most of the better options do not have any fees to pay but have a relatively higher APR compared to regular credit cards.
Interest
On average, the APR percentage is about 26%, which is quite high to compensate for the lack of annual fees on most cards.
Again, we cannot stress enough that you should do your research into the package and calculate if the figures are worth it or if you would end up only wasting money.
Summary
Store credit cards are great cards that will get you some great discounts if used wisely, acting as a sort of loyalty card for your favorite retailers and brands.Â
But the decision to get one is best not made lightly, so you should consider your financial status, the benefits, and the fees you need to pay in the end to see if it is worth it for you.
