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Best Store Credit Cards for May 2020

Best Store Credit Cards for May 2020

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated May 01, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

Whether you’re looking to pocket some cash back from Amazon purchases, get a discount at checkout on your next Target run or be rewarded for stocking up on a variety of goods from Costco, there’s a store credit card to fill that niche.

Based on our research of cards available through CompareCards, as well as top cards offered by major issuers, here is a list of the best store credit cards on the market right now

Store cards can also be helpful for building or rebuilding your credit, as many store card issuers tend to be more willing to consider applicants with less-than-stellar credit scores.

What you need to watch out for with store cards, though, are their sky-high interest rates. However, you can avoid incurring interest charges entirely if you pay your card off in full each month.

Best for online shopping: Amazon Prime Rewards Visa Signature Card

Why we like this card: Avid Amazon shoppers will love the cash back they can earn on Amazon.com purchases with the Amazon Prime Rewards Visa Signature Card, issued by Chase. Plus, the card offers solid rewards for dining, gas stations and drugstores purchases, too.

Earn 5% back at Amazon.com and Whole Foods Market, 2% back at restaurants, gas stations and drugstores, 1% back on all other purchases. In addition, there’s a long list of benefits that come with the card, including:

  • Travel accident insurance
  • Lost luggage reimbursement
  • Baggage delay insurance
  • Auto rental collision damage waiver
  • Extended warranty protection
  • Purchase protection

Finally, you’ll get a $70 Amazon.com Gift Card instantly upon credit card approval.

Also worth considering is the Amazon Prime Store Card. Cardholders earn 5% back at Amazon.com. However, unlike the Amazon Prime Rewards Visa Signature Card, the Amazon Prime Store Card can only be used for Amazon shopping.

What to watch out for: The Amazon Prime Rewards Visa Signature Card charges a $0 annual fee, but you must be an Amazon Prime member. A Prime membership costs $119 annually — or, if you’re a college student, $59 annually. Spending $2,380 a year on purchases eligible for 5% cash back will recoup the annual membership fee, while spending $1,180 will recoup the student amount. If your Prime membership expires, you’ll be downgraded to the Amazon Rewards Visa Signature Card, which earns 3% back at Amazon.com and Whole Foods Market, 2% back at restaurants, gas stations and drugstores, 1% back on all other purchases.

Rewards redemption options: The rewards you earn with the Amazon Prime Rewards Visa Signature Card can be redeemed for cash back (as a statement credit or a deposit into an eligible checking or savings account), gift cards, shopping with points on Amazon, booking book travel and sometimes for other products and services from third-party merchants.

Regular purchase APR: 15.99% - 23.99% variable

Best for Walmart shopping: Capital One® Walmart Rewards™ Card

Why we like this card: If you do a lot of your shopping within the Walmart ecosystem, you’ll love the Capital One® Walmart Rewards™ Card’s rewards. Earn 5% back at Walmart.com & Walmart app, Grocery Pickup and Delivery, 2% at Walmart stores, Walmart & Murphy USA Fuel Stations, Restaurants & travel, 1% Everywhere else Mastercard® is accepted.

Plus, there’s a sign-up bonus with the potential to put a nice amount of cash back in your pocket if you use Walmart Pay on your phone. Earn 5% back in Walmart stores for the first 12 months when you use your Capital One Walmart Rewards Card with Walmart Pay - the quick and secure way to pay with your phone at Walmart. The card’s annual fee is $0.

Also worth considering is the Walmart Rewards Card. It earns 5% back on purchases made at Walmart.com and on the Walmart app, 2% back on Walmart purchases in stores outside of the introductory offer; and 2% back at Walmart Fuel Stations. It offers a sign-up bonus as well: 5% back for the first 12 months when you use your card with Walmart Pay for in-store purchases, upon approval. Like its big sibling, the Walmart Rewards Card has an annual fee of $0.

What to watch out for: After the sign-up bonus ends, the Capital One® Walmart Rewards™ Card will only earn 2% on purchases in Walmart stores — though you’ll earn the higher rate for purchases made on Walmart.com. So, to get the most out of this card after the first year, you’ll probably want to do most of your Walmart shopping on Walmart.com and in the Walmart app.

Rewards redemption options: The rewards you earn with the Capital One® Walmart Rewards™ Card can be redeemed as statement credits, to cover purchases, for gift cards or for travel.

Regular purchase APR: 17.99% - 26.99% variable

Best for a big discount: Target RedCard Credit Card

Why we like this card: The Target RedCard Credit Card is a store card that keeps things simple. It offers a 5% discount on Target and Target.com purchases. While most other rewards cards earn cash back or points that you have to redeem at a later time, the Target RedCard Credit Card discount instantly reduces the cost of your purchase.

Plus, the card has a $0 annual fee, and offers benefits like early access to special events, free two-day shipping, extended returns and more.

There’s also a debit card version, the Target RedCard Debit Card, which offers a 5% discount on Target and Target.com purchases. The debit card works by linking your existing checking account, and also allows you to withdraw up to $40 in cash at checkout.

What to watch out for: There are a variety of items and services not eligible for the discount, including Target gift cards, eye exams, prescriptions and over-the-counter items located behind the pharmacy counter and clinic services.

Rewards redemption options: With the Target RedCard Credit Card and the Target RedCard Debit Card, the discount is applied when you check out.

Regular purchase APR: 22.90% variable

Best for Costco and fuel: Costco Anywhere Visa® Card by Citi

  • 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases

  • 0% fee for transactions while traveling abroad

  • $0 annual fee

Highlights
  • Discover one of Citi's best cash back rewards cards designed exclusively for Costco members
  • 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter
  • 3% cash back on restaurants and eligible travel purchases
  • 2% cash back on all other purchases from Costco and Costco.com
  • 1% cash back on all other purchases
  • No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
  • Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
  • The standard variable APR for Citi Flex Plan is 15.24%. Citi Flex Plan offers are made available at Citi's discretion.

See additional details for Costco Anywhere Visa® Card by Citi

More Info

Why we like this card: The Costco Anywhere Visa® Card by Citi offers one of the best cashback rates on gas that you’ll find on any card, and offers a solid rate on Costco purchases too. Earn 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases. So, if you’re the type who likes to fill up your gas tank and then pop into Costco to stock up on bulk goods, you probably want this credit card in your wallet.

What to watch out for: The Costco Anywhere Visa® Card by Citi charges a $0 annual fee, but you do need a Costco membership to shop at Costco. Here’s how much a Costco membership costs:

  • Costco Gold Star membership: $60
  • Costco Gold Star Executive membership: $120
  • Costco Business membership: $60
  • Costco Business Executive membership: $120

Rewards redemptions options: Cash back earned with the Costco Anywhere Visa® Card by Citi will be issued as a reward certificate once a year after your February billing statement closes. This certificate can be redeemed for cash or merchandise at U.S. Costco warehouses.

Regular purchase APR: 15.24% (variable)

Best for home improvement: Lowe's Advantage Card

Why we like this card: When using the Lowe's Advantage Card, you can get 5% off your eligible purchase — or, on purchases of $299 or more, you can take advantage of a special financing offer. Special financing offers give you a window of time to pay off your purchase without interest. Note that you can’t combine the discount with a special financing period.

Finally, on purchases of $2,000 or more, this card offers the option of fixed monthly payments at a reduced APR. If you’re making a big purchase you can’t pay off in a shorter interest-free special financing period, the fixed pay financing option could be worth considering.

What sets this card apart from the Home Depot Consumer Credit Card is that the Lowe's Advantage Card offers a discount on every purchase.

The Lowe's Advantage Card has an annual fee of $0.

What to watch out for: As mentioned above, if you take advantage of the special financing, you cannot also get the 5% discount. Also, know that the special financing offered on this card involves deferred interest — which means if you don’t pay off the purchase in full within the promotional period, you’ll be charged interest from the date of the purchase.

Rewards redemption options: The Lowe's Advantage Card offers a discount of 5% off your eligible purchase (except when using special financing) at checkout.

Regular purchase APR: 26.99% variable

Best for department store shopping: Kohl's Charge

Why we like this card: First, the new cardmember offer could net you significant savings. take 30% off your first purchase in-store or online when you use your Kohl's Charge. And you can save even more by stacking that offer with Kohl’s Cash coupons and Yes2You Rewards.

For ongoing value, the card offers regular promotions and coupons that can knock off anywhere from 15% to 30% of your Kohl’s purchases. If Kohl’s is your go-to department store, the Kohl's Charge can help you save quite a bit.

Finally, Kohl’s offers the opportunity to check if you prequalify for this card, which doesn’t ding your credit score like a hard inquiry will. Of course, if you decide to go ahead and apply, that will involve a hard inquiry.

What to watch out for: Certain brands and types of merchandise aren’t eligible for discounts and coupons. For example, Levi’s and Timberland are among the excluded brands, and toys and beauty and fragrance are among the merchandise categories that are excluded.

Rewards redemption options: Use your coupons to reduce the price of purchases at Kohl’s, as long as what you’re buying isn’t on the list of exclusions.

Regular purchase APR: 26.74% variable

Best for beauty supplies and cosmetics: Ultamate Rewards® Credit Card

Why we like this card: This credit card from Ulta lets cardholders earn 2 points for every $1 spent at Ulta Beauty. Ultamate rewards can only be redeemed for dollars off Ulta merchandise, but the redemption value (which varies depending on how many points you have) is quite good.

Here are the details:

Ultamate rewards points earnedDollars off merchandise
100$3
250$8
500$17.50
750$30
1,000$50
2,000$125

And there’s a new cardmember offer: Get 20% off your first purchase at Ulta Beauty if approved.

If Ulta is your favorite place to shop for beauty supplies and cosmetics, the Ultamate Rewards® Credit Card offers significant savings once you accrue at least 100 points.

What to watch out for: Points will expire at the end of the quarter one year after the date on which they were earned. If you only shop at Ulta occasionally, a better choice would likely be a cashback or rewards card on which your cash back or points don’t expire.

Rewards redemption options: You can redeem Ultamate rewards points when making a purchase online or by telling the cashier when checking out in the store how many points you want to use. You must follow the increments in the table above (though you can combine increments), but you’ll be able to choose whether you want to redeem all or just some of your points.

Regular purchase APR: 27.49% variable

Alternatives to store cards

Best for earning a flat rate on every purchase: Capital One® Quicksilver® Cash Rewards Credit Card

Why we like this card: With the Capital One® Quicksilver® Cash Rewards Credit Card, you don’t have to fret about whether your purchases fall into the right rewards category or not. This card keeps things simple by letting cardholders earn 1.5% cash back on every purchase, every day.

Plus, the sign-up bonus is generous considering its low spending requirement. Earn a one-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening.

Finally, the Capital One® Quicksilver® Cash Rewards Credit Card’s annual fee is $0.

What to watch out for: The Capital One® Quicksilver® Cash Rewards Credit Card is a good card, but there are credit cards that offer higher cashback rates.

Regular purchase APR: 15.49% - 25.49% (variable)

Best for cash back: Discover it® Cash Back and Chase Freedom®

  • 0% for 14 months on purchases and Balance Transfers, then 11.99% - 22.99% Variable.

  • Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically. *

  • Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically*

Highlights
  • INTRO OFFER: Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched.
  • Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate.
  • Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Redeem cash back any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • No annual fee.
  • See Rates & Fees

See additional details for Discover it® Cash Back

More Info

Why we like these cards: Both the Discover it® Cash Back and the Chase Freedom® have quarterly rotating cashback categories where you can earn 5% when you activate. Some of the categories include grocery stores, department stores and online shopping on Amazon.com, Walmart.com and Target.com, making either card a competitive choice when compared with the store cards listed earlier in the article.

Here are the rewards offered by each card:

  • Discover it® Cash Back: Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically. Check out the 2020 Discover cashback calendar.
  • Chase Freedom®: Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories every 3 months. Unlimited 1% cash back on all other purchases. Check out the 2020 Chase cashback calendar.

Both of the cards offer generous sign-up bonuses as well. For new cardmembers, Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched. And with the Chase Freedom®, earn a $150 bonus after spending $500 on purchases in your first 3 months from account opening.

What to watch out for: If you don’t activate the new 5% category each quarter, you’ll only earn 1% cash back. And know that both cards have a $1,500 quarterly spending cap on the 5% cashback rate, after which you earn 1%. Finally, when applying for the Chase Freedom®, be sure to take the unwritten Chase 5/24 rule into account — Chase will deny applicants who have been approved for five or more credit cards from any issuer in the past 24 months.

Regular purchase APR: 11.99% - 22.99% variable for the Discover it® Cash Back and 14.99% to 23.74% variable for the Chase Freedom®.

Best for intro 0% APR on purchases: Wells Fargo Platinum card

Why we like this card: If you’re planning on a large purchase, such as furniture or appliances, or if you think you might have to carry a balance for several months, it’s smart to use a credit card offering introductory 0% APR on purchases. The Wells Fargo Platinum card is such a card.

Get intro 0% for 18 months on purchases. After, an APR of 15.49%-24.99% (variable) applies.

What to watch out for: The Wells Fargo Platinum card offers no sign-up bonus. If you don’t need as long of an intro 0% APR period, you might consider a card like the Wells Fargo Propel American Express® card — which offers a shorter intro period of 0% for 12 months months on purchases, but has a valuable welcome offer. Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months - that's a $200 cash redemption value. After the intro APR period, a 13.99%-25.99% (variable) APR applies.

Best for building credit: AvantCard Credit Card

Why we like this card: If you’re looking for a credit card to build credit with, the AvantCard Credit Card can help. It’s a no-frills unsecured card for people with fair/limited/bad/poor credit.

What to watch out for: The AvantCard Credit Card charges a $39 annual fee. It’s also not available to consumers living in Colorado, Iowa, Vermont, West Virginia or Wisconsin.

Regular purchase APR: 25.99% variable

FAQs about store credit cards

What credit score is needed to get a store card? Store cards are typically easier to get approved for applicants with lower credit scores than general-use credit cards. However, this applies mainly to private-label store cards rather than co-branded cards. Know that your initial credit limit will most likely be low if your credit needs work.

What are co-branded store cards? Co-branded store cards are credit cards that display the logo for the credit card issuer (generally American Express, Mastercard or Visa), along with the store brand. These cards can be used anywhere the payment network is accepted — in contrast with private-label store cards, which can only be used at one brand or family of brands.

What bank issues store cards? Many retail credit cards are issued by Synchrony or Comenity. But other issuers, such as Capital One, may also issue store cards.


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