Reviewed by Evelyn WaughHow Do Retail Credit Cards Affect Your Credit Score?
Reviewed by Evelyn Waugh
Quick Answer
- Retail credit cards affect your credit scores the same way other credit cards do. Potential impacts depend on how you manage the card.
- Responsible retail card use can help you build credit history. On the other hand, missed payments and high balances hurt your credit.
- Consider traditional credit cards, too, which may offer better rates and perks.
You stand at the checkout counter, head spinning as your new clothes are rung up and your total climbs higher and higher. "Would you like to get 20% off by opening a credit card with us?" the salesperson asks. "Save 20%? Sign me up," you might think.
But before you complete that credit card application, consider the potential effect it may have on your credit score, directly and indirectly. Retail credit cards can affect your credit score positively or negatively, depending on how you use them.
It's not wise to apply for new credit in the heat of a shopping frenzy, especially if the lure of new credit would encourage you to make a purchase you wouldn't otherwise. To make a smart decision about applying for a retail credit card, take a deep breath, step away from the checkout line and consider your shopping habits, your ability to manage debt and pay bills on time, and what the card has to offer.
What Is a Retail Credit Card?
Retail credit cards are issued by retail stores, and most can only be used at the retailer that issued it. Often, a retail credit card will have rewards programs that encourages you to patronize its issuing retailer. Some retailers offer co-branded Visa or American Express credit cards that can be used like a traditional credit card.
Both types of store credit cards usually charge higher interest rates than regular credit cards. Retail cards also tend to charge higher fees for things like cash advances or foreign transactions, as well as higher penalties for late payments. If you have good credit, you can easily find a credit card with a lower APR than you can get from a store card.
Do Store Cards Help Credit?
Store credit cards can either help or hurt your credit depending on your credit history, credit score and how you use the card. If you have poor credit or don't have much of a credit history, a retail credit card can be a useful tool for building or rebuilding credit. Because these cards typically have less stringent approval criteria, they're generally easier to get than a traditional credit card if you have a lower credit score or a thin credit file. Like with any credit card, if you use your store credit card to make a small purchase every month and pay it off in full and on time, you can gradually improve your credit score.
If this is your first credit card, you can graduate to a traditional credit card after you've built up some credit history. Be cautious about closing your retail card, however, as closing it will reduce your total credit limit and possibly increase your credit utilization ratio. Credit utilization measures the amount of credit card debt you're carrying relative to your overall credit limit, and it's the second most important factor in your credit score. A ratio above 30% will hurt your scores, but the lower, the better.
To keep a retail credit card from hurting your credit score, there are a few things you should know:
- Choose carefully: Applying for a retail credit card generates a hard inquiry on your credit report, which can have a negative effect on your credit score. If you only apply for one store credit card, this hit will be temporary. However, applying for multiple credit cards all at once can cause a more significant dip in your credit score, so limit yourself to one retailer.
- Watch your credit usage: Retail store credit cards typically have lower credit limits than other credit cards. Although this might seem like a good thing (since it keeps you from getting into too much debt), it can work against you if you carry a high balance and a high credit utilization ratio.
- Understand promotional offers: Many store credit cards offer deferred interest financing for six to 12 months on large purchases, such as furniture. While this sounds appealing, it's important to understand that deferred interest financing isn't the same as an introductory 0% APR offer. With a 0% APR offer, you don't accrue any interest during the promotional period; interest on your balance only begins to accrue after the promotional period is over. With deferred interest financing, interest starts accruing on your balance beginning on the date of purchase. If you don't pay off your entire balance before the end of the promotional period, all of that deferred interest will come due at once.
- Stay on top of your bill: If you rarely shop at a specific retailer, it's easy to miss the statement or forget to pay the bill on time. Unlike utilities, car payments, rent and other bills you pay every single month, a retail credit card bill can easily slip through the cracks. At best, this might mean a late fee; at worst, it could mean a chunk of deferred interest coming due.
- Resist the urge to buy more: Finally, if you're a shopaholic or a bargain hunter, having a retail credit card can easily entice you to buy things you don't really need. Retailers know exactly how to push a cardholder's buttons with endless offers, coupons, discounts, extra rewards points, early access to sales and more. The constant temptation can weaken your willpower and spur overspending.
If you want to earn rewards points or cash back on your store purchases, a general-use credit card that offers rewards can offer the same benefits with more flexibility. If you just want to save money, search online for a discount code—you'll probably find one equivalent to the savings from a store card.
Best rewards cards of 2026
Compare cards from our partners that earn points, cash back or miles on everyday spending.
Offers from our partners
Wells Fargo Active Cash® Card
Intro bonus:
$100
Earn a $100 cash rewards bonus after spending $500 in purchases in the first 3 months.
Intro APR:0% intro APR for 12 months from account opening on purchases and qualifying balance transfers
Ongoing APR:18.74%, 24.74%, or 28.74% Variable APR
Rewards:
2% (Cash Rewards)
Earn unlimited 2% cash rewards on purchases.
Annual Fee:$0
Blue Cash Preferred® Card from American Express
Intro bonus:
As High As $300 Cash Back. Find Out Your Offer.
You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 12 months
Ongoing APR:19.74%-28.74% Variable
Rewards:
1% - 6% (cash back)
Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
Annual Fee:$0 intro annual fee for the first year, then $95.
Credit One Bank® Platinum Rewards Visa® Card
Ongoing APR:29.74% Variable
Rewards:
1% (cash back)
Earn 1% cash back rewards on eligible gas, grocery purchases and mobile phone service, internet, cable and satellite TV services, terms apply
Annual Fee:$39
Credit One Bank® Platinum X5 Visa Signature® Metal Card
Ongoing APR:29.74% Variable
Rewards:
1% - 5% (cash back)
Earn 5% cash back rewards on the first $5,000 of eligible gas, grocery, internet, cable, satellite TV, and mobile phone service purchases each year, and then 1% thereafter. Plus 1% cash back rewards on all other purchases, terms apply.
Annual Fee:$95
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:
1% (cash back)
Cash back will be awarded as points redeemable for a statement credit
Annual Fee:$125 first year; then $125.04/year ($10.42/mo)
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:
1% (cash back)
Cash back will be awarded as points redeemable for a statement credit
Annual Fee:$75*
Bank of America® Customized Cash Rewards credit card
Intro APR:0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days
Ongoing APR:17.74% - 27.74% Variable
Rewards:
1% - 6% (cash back)
Earn 6% cash back for the first year in the category of your choice. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category. Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.
Annual Fee:$0
Bank of America® Unlimited Cash Rewards credit card
Intro APR:0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days
Ongoing APR:17.74% - 27.74% Variable
Rewards:
1.5% (cash back)
1.5% cash back on all purchases
Annual Fee:$0
See all our best rewards credit cards for 2026.
What Credit Score Do You Need for a Retail Credit Card?
Store-only credit cards are generally easier to get than traditional cards, even if you only have fair credit. Retailers know their cardholders shop at their stores more often, so they have an incentive to give you a card. As previously mentioned, retail credit cards tend to have higher APRs and lower credit limits than traditional credit cards, which reduces the risk retailers take by extending credit to those with less-than-stellar credit scores.
If you're trying to get a co-branded store card, you'll generally need a good credit score to qualify. That's because co-branded cards are issued by the partner bank rather than the retailer. Even if you apply for a co-branded card and can't get approved, you may still be able to get a store-only card from the same retailer.
Is a Store Credit Card Right for You?
Depending on how you use it, a retail credit card can help or hurt your credit score. If you're trying to rebuild bad credit or build a credit history for the first time, a retail credit card may be your only option for getting credit. Used wisely, it can be a stepping-stone to a traditional credit card that has better terms and a higher credit limit.
If you have good credit, however, there are plenty of traditional credit cards that offer similar rewards to store cards but with lower interest rates and fees. To see what types of credit cards you can qualify for, start by checking your credit scores.
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About the author
Karen Axelton
Karen Axelton is Experian’s in-house senior personal finance writer. She has over 20 years of experience as a journalist and has written or ghostwritten content for a variety of financial services companies.
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