Easy Department Store Credit Cards for Bad Credit
Best for Decorators
Key Rewards Visa *
Up to 5% Reward Rate
Earn 5% back online and in stores across seven brands, 4% back at grocery stores and restaurants (excludes fast food)Read More
Regular APR
25.24% variable
Credit Score
Good/Excellent (700 - 749)
Why We Picked It
If you're a frequent re-doer or you're furnishing a home from top-to-bottom and want to only do it with items from this family of companies, you can find value in choosing the rewards or financing options with the card.
Pros & Cons
- 5% back online and in stores across seven brands, 4% back at grocery stores and restaurants (excludes fast food) and 1% back on everything else
- 10% back across seven brands for the first 30 days from account opening
- 12-month promotional financing on purchases of $750 or more
- No annual fee
Card Details
- Earn 10% back across seven brands for your first 30 days from account opening
- Earn 5% back online and in stores across seven brands, 4% back at grocery stores and restaurants (excludes fast food) and 1% back on everything else
- 25.24% variable APR on purchases and balance transfers
- No annual fee
Best Bargain Hunter's Store Card
TJX Rewards® Platinum Mastercard® *
5X Reward Rate
5% back in rewards when you shop at T.J.Maxx, Marshalls, HomeGoods, Sierra and Homesense stores with a TJX Rewards creditRead More
Regular APR
26.99% variable
Credit Score
Fair to Good (650 - 699)
Why We Picked It
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Pros & Cons
- 10% off your first purchase when you apply in-store
- Earn 5% on TJX store purchases
- Reward certificates cannot be exchanged for cash
- Lost or stolen rewards certificates will not be replaced
- Extremely high APR
Card Details
- 26.99% Variable APR on purchases
- No annual fee
- Earn 5% back in rewards when you shop at T.J.Maxx, Marshalls, HomeGoods, Sierra and Homesense stores with a TJX Rewards credit card
- Earn a $10 rewards certificate for every 1,000 points earned
Best for DIYers
Lowe's Advantage Card *
Up to 5X Reward Rate
5% discount on almost everything Lowe's sells with an alternative option for special financing plans
Welcome Bonus
Up to 20% off
Credit Score
Fair (650 - 699)
Why We Picked It
-
Pros & Cons
- 5% discount on almost everything Lowe's sells with an alternative option for special financing plans
- Periodic promotional offers for cardholders.
- No annual fee
- Can only be used in Lowe's stores
- High APR
- Financing options can be expensive if not careful
- No rewards program
- No benefits such as free shipping, extended return time
Card Details
- 26.99% fixed APR on purchases
- No annual fee
- No foreign transaction fee
- Choose between everyday great financing options and exclusive discounts all in one card
- Get an additional 5% off every eligible purchase or order made with your Lowe's Advantage Card
- Pay over time. Enjoy 6 months Special Financing on purchases of $299 or more made with your Lowe's Advantage Card; or
- Enjoy 84 fixed monthly payments at 7.99% APR financing when you use your Lowe's Advantage Card on purchases of $2,000 or more
- Pre-qualify for a Lowe's Advantage card without impacting your credit score
Best for High-End Department Stores
Bloomingdale's Credit Card *
Up to 3X Reward Rate
Earn 3 points per dollar spent at Bloomingdale's or anywhere American Express Cards are welcome. Earn 1 point for everyRead More
Welcome Bonus
20% off for two days after opening of account
Regular APR
25.99% variable
Credit Score
Good/Excellent (700 - 749)
Why We Picked It
Fans of the upscale department store can earn big rewards to redeem on more Bloomie's stuff.
Pros & Cons
- No annual fee
- Earn extra points for shopping with the card
- Access to Amex offers
- Rewards can only be redeemed for more purchases with the store
- No intro APR offer
Card Details
- Open a Bloomingdale's Credit Card and take 20% off today's and tomorrow's Bloomingdale's purchases (up to total savings of $250 over the two days).
- Earn 3 points per dollar spent at Bloomingdale's or anywhere American Express Cards are welcome.
- No annual fee.
- Receive a $25 award for every 5,000 points earned.
Best for Electronics Fans
My Best Buy® Visa® Card *
Regular APR
10.74% - 27.99% variable
Credit Score
Good to Excellent (700 - 749)
Card Details
- 5% back in rewards (6% back in rewards for Elite Plus card members) on Best Buy purchases or flexible financing options starting on purchases $299 and up.
- 3% back in rewards on gas purchases, 2% back in rewards on grocery dining and takeout purchases, and 1% back in rewards on all other purchases
- 10.74% – 27.99% Variable APR on purchases
- $0 – $59 annual fee, based on creditworthiness
Best for JC Penney Shoppers
JCPenney Credit Card *
Up to 1X Reward Rate
Earn 1 point per $1 spent with your JCPenney Credit Card; Earn 1 point per $2 spent any other wayRead More
Welcome Bonus
Up to extra 15% off
Regular APR
22.74% variable APR on purchases
Credit Score
Fair (650 - 699)
Why We Picked It
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Pros & Cons
- Increased earnings vs. non-cardholder rewards members
- Over 150 cardmember specific savings days
- Special coupons, bonus points and appreciation discounts based on your elite status
- Only usable at JCPenney stores and on JCPenney.com
- Earn better rewards with a variety of other credit cards
Card Details
- Get an extra 15% off select purchases made today when you open & use your JCPenney Credit Card
- 22.74% variable APR on purchases
- No annual fee
- Earn 1 point per $1 spent with your JCPenney Credit Card
- Earn 1 point per $2 spent any other way you pay
- Get a $10 reward for 200 points earned
- 150+ credit savings days just for JCPenney Credit Cardmembers
- Special financing offers available with your JCPenney Credit Card
- Manage your rewards and offers inside the JCPenney app
Methodology
The Best Store Credit Cards for bad credit were chosen based on welcome bonuses, fees, rewards and other perks. Keep in mind what may be best for some consumers might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.
Best Store Credit Cards for Bad Credit
How to Pick a Best Store Credit Card for Bad Credit
Credit cards can have serious consequences to your credit and financial health.
The two most common types of store cards are open- and closed-loop cards, otherwise known as in-network and out-of-network cards. Open-loop cards, sometimes called in-network or co-branded, will usually have a Visa, Mastercard, American Express or other major card issuer logo stamped on them and can be used anywhere the issuer's cards are accepted. An out-of-network card, also known as a closed-loop or store-only card can only be used at the store associated with it.
Our list features both in-network cards and closed-loop cards and it's important to know what type of card you're applying for. There may be times where you apply for an open-loop card, but are offered a closed-loop card instead. This may happen because the bank does not feel that your credit qualifies for an open-loop card, but they do feel that you qualify for some credit.
Closed-loop cards normally impact credit and appear on credit reports in the same way in-network cards do. Many store cards behave the same way a credit card does, but not all do. Some cards offer "special financing" which involves fine print applicants should pay special attention to, as it often involves terms different from a standard credit card. No matter what the store card you want indicates about its interest, fees and other charges, be sure to read all the fine print until you fully understand what you're getting yourself into.
To make the process easier, Forbes Advisor has created a number of guides to help consumers define terms, explore the inner workings of credit and understand how banks and other lenders advertise financial products:
- What Makes Up a Credit Score?
- What Is a Credit Report?
- Credit Utilization, Explained
- How to Build Better Credit
Store cards have long held a reputation for gouging consumers with high interest rates and hidden fees, but store cards can also offer a way to unlock special financing on large purchases or earn rewards or discounts at a favorite store. Choose carefully—especially if you're starting to build credit, as you'll want to keep your first credit card account open as long as possible for the benefit account longevity will have on your score.
If you're not convinced a store card is the best option—and you likely shouldn't be, since store cards often have much higher rates and less favorable terms—consider instead a secured card or a student card, which may help rebuild credit without the high rates and hidden fees many store cards are infamous for.
Frequently Asked Questions
What's the best store credit card?
There is no one perfect credit card for everyone. This is particularly true when it comes to store credit cards, since most store cards have special rewards or incentives associated with the co-branded store. You may find the cards offered by the stores you shop at are a good fit for you or not, depending on APRs, fees and other terms.
Will a store credit card help me build credit?
If the store card issuer reports account activity to the three major credit bureaus, the account will impact your credit. This can be a benefit if used responsibly or, have an adverse effect on your score if the account isn't paid on time or if spending on the card causes too high a credit utilization ratio.
Will closing store credit cards hurt my credit score?
Your credit score is usually affected by closing any credit account. Closing accounts you've held for a long time could shorten the length of your longest-held account, which usually has a negative impact on credit. Closing accounts you don't use could have other benefits, such as reducing the likelihood someone will steal your identity using an infrequently-monitored account.
Are store cards easier to receive approval for than other cards?
Not necessarily. Many store credit cards may have a reputation for being "easy" to receive approval for, but this doesn't mean all are. Nor does "easy" mean "better." When evaluating which cards to apply for, understand how your credit and financial position may change with a credit card. If you're applying for a first credit card, check out our list of the best first credit cards.
Next Up in Credit Cards
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author's alone and have not been provided, approved, or otherwise endorsed by our partners.
Source: https://www.forbes.com/advisor/credit-cards/best/store-credit-cards-for-bad-credit/
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