Content provided by Bankrate.com. New York Post and its content partners earn compensation from the affiliate companies that appear below. This content does not include all available financial offers, and compensation may impact how and where links appear in the content.
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
‘Tis the season to … save? The holiday shopping season is here, and finding the perfect gifts while keeping your bank account happy can be quite the challenge.
Many shoppers on the hunt for details are turning to store credit cards. More than half (53%) of consumers say they have a branded credit card, according to a recent survey.
It pays to be loyal — literally. Store credit cards can help you snag discounts and earn rewards at your favorite retailers. But, they often come with incredibly high interest rates and may not offer the best overall benefit.
But there are a few store cards that stand out. Most have robust rewards, no annual fees, solid sign-up bonuses, and reasonable credit score requirements. These are some of the best store credit cards to help you save money on holiday gifts.
Best store credit cards
- Prime Visa Card
- Costco Anywhere Visa® Card
- Capital One Walmart Rewards® Mastercard®
- Target REDcard™ Credit Card
- Lowe’s Advantage Card
- Home Depot Consumer Credit Card
- Kohl’s Credit Card
- My Best Buy Visa® Card
Prime Visa Card
As far as retail credit cards go, the Prime Visa Card comes with some of the most robust card benefits, especially for online shopping.
With this card, you can earn 5% cash back on all eligible Amazon.com and Whole Foods Market purchases. This is a great deal if Amazon is your one-stop shop for purchasing gifts, groceries, and everyday essentials. You’ll also earn unlimited 2% cash back on restaurants and gas stations, unlimited 2% cash back on local transit and commuting, and unlimited 1% cash back on everything else.
You can use rewards for Amazon purchases or redeem them for cash back or gift cards. As a Prime Visa cardholder, you can access exclusive deals and discounts on various Amazon products and services.
While the Prime Visa card has no annual fee, you must be a Prime member to qualify. Prime membership costs $14.99 per month or $139 per year. Once you get approved, you’ll receive a welcome bonus gift card.
Pros
- High rewards rate
- Wide acceptance
- No annual fee
- Flexible rewards redemptions
- No foreign transaction fees
- Welcome bonus gift card
- Reasonable APR
Cons
- Must be a Prime member to qualify
- No intro 0% APR
Costco Anywhere Visa
The Costco Anywhere Visa card offers rewards for Costco members beyond the warehouse. If you’re already a Costco shopper, this card can be a game-changer for your holiday shopping.
One of the Costco Anywhere Visa’s standout features is its generous cash back rewards. Earn 4% cash back on eligible gas and EV charging purchases, including gas at Costco stations (up to $7,000 per year, then 1%), perfect for those long road trips to visit family and friends during the holiday season. You’ll also earn 3% on eligible restaurant and travel purchases, 2% on Costco purchases, and 1% back on all other purchases.
This card doubles as your Costco membership card, eliminating the need to carry multiple cards in your wallet. Like other superstore cards, you’ll need to be a Costco member to apply, which costs $60 per year.
Redeeming your rewards can be difficult. Cash back is mailed to you yearly and can only be redeemed for cash or merchandise at Costco stores.
Pros
- No annual fee
- No foreign transaction fee
- Generous rewards structure for everyday purchases
- No foreign transaction fees
- Widely accepted
- Reasonable APR
Cons
- Hard to redeem rewards
- Costco membership required
Capital One Walmart Rewards Mastercard
The Capital One Walmart card is one of the better store cards due to its rewards structure and redemption flexibility.
Unlike other store credit cards, redemptions aren’t limited to coupons or credits you can only use at their store. You can receive your cash back as a check, statement credit, gift card, or even redeem it for travel.
You can earn 5% cash back on purchases made on Walmart.com, including pick-up and delivery orders. Additionally, you’ll earn 2% cash back on purchases made at Walmart stores, making it a versatile card that also rewards you for in-store shopping. Earn 2% back on travel and restaurants and 1% back on all other purchases.
The card also comes with a welcome offer of 5% cash back in Walmart stores in the first 12 months, as long as you use your card with Walmart Pay. This is a great way to jumpstart your holiday spending.
Pros
- Great cash back reward for shopping at Walmart
- No annual fee
- No foreign transaction fees
- Widely accepted
- Reasonable APR for cardholders with good to excellent credit
Cons
- High APR for cardholders with fair credit
- No intro 0% APR
- Need good credit to qualify
Target REDCard
The main draw of the Target REDCard is the 5% discount it offers on all eligible purchases made at the retailer. This discount can add up, especially while holiday shopping. On top of that, you’ll receive a 10% discount coupon each year on your card’s anniversary.
Cardholders also earn 2% on dining and gas purchases and 1% back on all other purchases. Cash back can only be redeemed as a Target gift card.
The REDCard includes features of a store loyalty program, such as 30 extra days for returns and free shipping for most online items. During the busy holiday season, when time is of the essence, these perks can save you time and money. Plus, if you need to make a return, you’ll have extra time, making it easier to handle any post-holiday returns or exchanges.
Pros
- 5% discount on eligible purchases at Target stores
- Free shipping on all orders
- Eligible for special promotions
- More time to return purchases
Cons
- Limited redemptions
- High APR
CardMatch Widget Here
Lowe’s Advantage Card
Lowe’s Advantage Card may be your best bet if you’re looking for a store credit card tied to a home improvement store.
Like the Target RedCard, this fee-free card offers a 5% discount on all eligible Lowe’s purchases. But, you can instead decide to use the card’s special financing option to fund your holiday purchases.
You can get deferred interest or fixed monthly payments depending on the purchase. This can be useful during the holiday season when you make larger purchases. Having the ability to finance these expenses can help you manage your budget effectively and spread out payments over time.
Pros
- 5% discount on eligible purchases at Lowe’s
- No annual fee
- Promotional offers
- Special financing options
Cons
- High APR
- Can only use card at Lowe’s
Home Depot Consumer Credit Card
You should consider the Home Depot Consumer Card if you plan on making considerable home improvements this winter. That’s really the main reason to get it.
You can’t earn rewards on purchases made with this card. But, you get special financing, which can help homeowners purchase supplies and pay for them over time. You can get deferred interest or a fixed monthly payment for a set period, typically between six and 24 months.
Pros
- Promotional financing
- Lower credit requirements
- No membership needed
Cons
- High APR
- No rewards
Kohl’s Credit Card
Customers who frequently shop at the retailer can earn a fair amount of Kohl’s cash with this credit card. You’ll earn 7.5% in rewards on every purchase, 3% on gas, 2% at grocery stores, and 1% everywhere else. All rewards become Kohl’s cash and must be spent within 30 days.
You can also get special offers and promotions throughout the year, including extra discounts during the holiday season. These exclusive savings can help you stretch your holiday budget even further.
Pros
- High cash back rates at Kohl’s locations
- No annual fee
- No membership fees
Cons
- Redemptions limited to Kohl’s cash
- Can’t use outside Kohl’s
- High APR
My Best Buy Visa Card
This Best Buy card isn’t one of the best store cards on this list, but it may benefit customers looking to finance big tech or appliance purchases.
You can take advantage of low or no-interest payments, making larger purchases without worrying about immediate payment. If you’re not looking to use Best Buy’s flexible financing option, you can earn 5% back in rewards on Best Buy purchases instead.
You’ll also earn 3% on gas purchases, 2% on dining and takeout, 2% on grocery purchases, and 1% on other purchases. You may also get a one-time reward bonus on your first day or purchases. Unfortunately, you can only redeem the card’s rewards at Best Buy.
Pros
- Earn high cash back on Best Buy purchases
- Flexible financing options
- No annual fee
Cons
- Inflexible redemption options
- High APR
- No purchase protection
Are store credit cards worth it?
Store cards aren’t created equal. Some are much better than others, and you’ll need to consider your spending habits before you decide on one.
Many store credit cards are not mentioned in this article for a reason: They’re terrible. Even if your favorite retailer offers a credit card, it doesn’t mean you should get it.
The best credit cards for shopping should offer rewards with solid earning rates where you spend the most. You should be able to use the card outside the retailer and have options for redeeming rewards. Plus, the card shouldn’t come with annual fees and should be relatively easy to get approved for.
If a store card doesn’t offer these factors, ensure the other benefits are worth it before signing up. You’ll usually get better value from a general rewards card.
General rewards cards to consider
Many general rewards cards are better earners than store credit cards. These cards still earn rewards with holiday shopping but aren’t tied to a specific retailer.
Options include:
- Citi® Double Cash Card
- Bilt Mastercard®
- U.S. Bank Cash+® Visa Signature® Card
- Chase Sapphire Preferred® Card
- Blue Cash Preferred® Card from American Express
- The American Express® Gold Card
- Capital One Venture Rewards Credit Card
The bottom line
Store credit cards are a good option for brand loyalists who want to maximize their savings. If you wish to access exclusive discounts, rewards programs, and special financing options from a specific store — a store card may be for you.
Store cards can be extra beneficial for shopping during the holiday season. But before opening a store card, review your spending habits, ensure you can responsibly manage credit, and compare the benefits of each card.
[Disclaimer]: *Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.