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If you just love to shop certain stores, having a store-branded credit card can be a boon for earning rewards or coupons that you can use towards future purchases. Not only that, but a store credit card can be a good way to build up your credit score, since they are sometimes easier to qualify for than other rewards credit cards.
Credit Sesame has taken on the task of pinning down the best store credit cards of 2020. We’ve organized them by category and here’s a quick snapshot of which ones we think emerged as the cream of the crop:
- Best for fast shipping: Amazon Prime Store Card
- Best for everyday items: Target REDcard
- Best for clothing: Gap Credit Card
- Best for home improvement: Lowe’s Advantage Card
Store card details can be hard to decipher. We’ve broken down the finer points of each card in more detail for you and we’ve also included some helpful tips on how to choose a store credit card. Dive in with us to learn more about which store cards are the best of the best for loyal shoppers.
| Card features (terms and restrictions apply) | Amazon Prime Store Card | Target REDcard | Gap Credit Card | Lowe’s Advantage Card | TJX Rewards Credit Card |
|---|---|---|---|---|---|
| Annual fee | None; however your Amazon Prime membership fee must be paid current | None | None | None | None |
| Rewards program | Earn 5% back on Amazon.com purchases OR on orders of $150 or more or $600 or more on Amazon.com select special promotional financing, equal monthly payments | Earn 5% off your eligible purchases when you shop Target stores or Target.com | Earn 5 points per $1 on Gap and partner brand purchases in-store or online; Earn 1 point per $1 spent everywhere Visa® is accepted with the Gap Visa® card. Earn $5 reward for every 500 points you earn with your Gap Credit Card. | Earn 5% off on qualified purchases OR take advantage of special promotional financing on qualified purchases (minimum purchase required) | Earn 5 points per $1 on purchases at TJX brands |
| Other card perks | Amazon Prime Store cardholders may access exclusive offers on select items | Enjoy free 2-day shipping on eligible purchases when you shop Target.com | On your first purchase save 20% shopping online for one time use at Gap.com or Gap Factory.com and enjoy 5-7 day free shipping on the first purchase you make with your card (within 30 days) | Save 10% off your first in-store purchase at TJX brands | |
| We think it's good for: | Someone who wants to earn rewards on Amazon.com purchases | Someone who wants a 5% discount on eligible everyday purchases at Target and free 2-day shipping at Target.com | Someone who spends the bulk of their clothing budget at Gap or its partner brands | Someone who wants to earn discounts or save on interest when making home improvement purchases at Lowe's | Someone who frequently shops TJX brands for clothing, shoes or homegoods |
| Someone who wants to make a large purchase and pay over time | Someone looking for exclusive extra offers | ||||
| We think these folks should keep looking: | Someone who doesn't want to pay the annual fee for Amazon Prime membership | Someone who does the bulk of their everyday shopping at other stores | Someone who regularly carries a balance on their credit cards | Someone who's not able to pay off their balance before the promotional financing period ends | Someone who'd rather have their rewards applied as a statement credit |
| Someone who isn't certain that they can pay off the balance by the end of the special financing period | Someone who carries a balance | Someone who wants more reward redemption options | |||
| Additional information: | Terms, conditions, restrictions and limitations apply | Terms, conditions, restrictions and limitations apply | Terms, conditions, restrictions and limitations apply | Terms, conditions, restrictions and limitations apply |
Best for fast shipping: Amazon Prime Store Card
Amazon.com is a one-stop-shop for just about anything you want to buy, whether that’s books, electronics, toys, housewares or nearly anything else you can think of. The Amazon Prime Store card is a go-to choice if you want to earn rewards on your purchases and get your items delivered quickly.
What makes this card a standout
The Amazon Prime Store card has a major selling points. It’s the rewards program. With this card, you earn 5% back on purchases made at Amazon.com. Rewards can be redeemed as savings on your Amazon purchases or as a statement credit. That’s the same as getting $5 off on every $100 you spend.
Note that rewards are not earned on card purchases made from other merchants, including those who have enabled the Amazon Prime Store card as a payment option using Pay with Amazon.
On purchases of $150 or more on Amazon.com the Amazon Prime card also gives you the option to choose from a list of promotional financing offers for qualifying purchases at Amazon.com in lieu of earning 5% back. That can come in handy if you’re planning on buying something big and you need time to pay it off but you don’t want to get stuck paying big bucks in interest. Visit amazon.com to learn more about the Amazon Prime Store card promotional financing offers and additional information.
A few other details you should know about the promotional financing offers: the offers apply to Amazon.com purchases and Pay with Amazon orders at eligible merchants. Your first Subscribe and Save purchase may be eligible for special financing however subsequent Subscribe and Save orders are not eligible for special financing. Amazon Prime Store card promotional financing offers are deferred interest offers. That means if you don’t pay off the promotional balance by the due date, you will be charged interest on the full purchase amount from the transaction date. Depending on the purchase amount, the minimum required monthly payment may not be enough to pay off the balance by the end of the promotional period, so watch the calendar and your balance closely if you take advantage of one of these offers.
Why you may want to look elsewhere
The Amazon Prime Store card doesn’t have an annual fee but you have to be a Prime member to qualify, at a cost of $119 per year for a standard annual membership. If you don’t shop Amazon.com all that often, you may not get much mileage out of the card. Besides that, the variable Annual Percentage Rate (APR) for purchases is on the high side which diminishes the value of your rewards if you carry a balance. Note the rate will vary with the market based on the prime rate so be sure to check Amazon’s web site for the most current information.
The Amazon Prime Store card may not be used to purchase Prime memberships, digital newspaper and magazine subscriptions, or games and software downloads on Amazon.com.
Terms, conditions, restrictions and limitations apply.
Best for everyday items: Target REDcard
Whether you need to stock up on cleaning items, pick up a few groceries or you want to snag some cute home décor, the Target REDcard may save you money on your purchases. Best of all, this card has no annual fee.
What makes this card a standout
Instead of letting you earn rewards that you apply to a future purchase, the Target REDcard offers you a 5% discount every time you shop at Target stores or Target.com on eligible purchases. The discount applies whether you’re shopping in-store or online. As an added bonus, you also get free 2-day shipping on eligible items when you use your REDcard at Target.com for your purchases.
This card can be used for just about any everyday purchase, including personal care items, clothing, furniture, lawn and garden supplies or back-to-school shopping. If you spend a lot of time in Target, shopping with this card in hand is a no-brainer.
Certain categories of purchases don’t qualify for the 5% back, including, but not limited to, prescriptions, eye exams, gift cards, gift wrap, previous purchases, and a few more.
The REDcard also offers an extended return policy of an additional 30 days.
The REDcard is offered as a debit or a credit card. The credit card version of the REDcard is currently issued as store card or as a Mastercard® with chip-and-PIN technology. The Target Mastercard® may not be available to new applicants.
Why you may want to look elsewhere
The Target REDcard credit card has one drawback and that’s the variable Annual Percentage Rate (APR) for purchases, currently set at 22.90%, the rate will vary with the market based on the prime rate so check the Target web site for the most current information. Target doesn’t offer any kind of promotional financing offers, so if you carry a balance from month to month, the interest charges can quickly overcome the 5% savings you gain with the card and you can pay a lot more overall for your purchases.
Terms, conditions, restrictions and limitations apply.
Best for clothing: The Gap Credit Card
Gap is a great place to shop for the whole family, and this card rewards you for doing so. You’re not limited to using it only at Gap, either. You can also use this card to earn rewards when you shop at Old Navy, Banana Republic, and Athleta.
What makes this card a standout
The Gap Credit Card puts money in your pocket right away, by offering 20% off your first purchase valid for one-time use online at Gap.com or GapFactory.com in the U.S. (including Puerto Rico) only, within 30 days of account opening date.
Each time you shop at Gap or one of the Gap brands mentioned earlier, you can earn 5 points for every $1 you spend on their brands, in-store or online. For every 500 points you earn on your Gap Credit Card, you can receive a $5 reward good towards a future purchase.
If you decide to get the Gap Visa®, you’ll still earn 5 points per dollar you spend on their brands at Gap and its associated brands and you can also get one point per dollar spent on purchases everywhere Visa® is accepted. Earn 5,000 points in a calendar year and you can be upgraded to Gap Silver status, which includes benefits like 20% quarterly bonus rewards points and free 3- 5 day shipping on any Gap Inc. online order with code MYCARD.
Why you may want to look elsewhere
The biggest downside of the Gap Credit Card or the Gap Visa® Card is the fact that points are only redeemable toward Gap purchases. With a traditional Visa® rewards card, you might be able to earn points or miles towards travel or cash back in addition to merchandise and other options. Also, check the variable Annual Percentage Rate (APR) for purchases, it may be high, as it is on most store cards, so don’t carry a balance or you’ll quickly negate your rewards. Note, the rate will vary with the market based on the prime rate so check the Gap web site for the most current information.
Terms, conditions, restrictions and limitations apply.
Best for home improvement: Lowe’s Advantage Card
Home improvement projects can cost major cash. The Lowe’s Advantage Card gets the thumbs-up if you need to replace your appliances, build a deck or tackle any other big project and earn rewards or take advantage of 0% financing.
What makes the card a standout
The Lowe’s Advantage Card is similar to the Amazon Prime Store card, in that you can choose between 5% off eligible purchases or one of the promotional financing offers (minimum purchase required). You won’t pay an annual fee either way for the Lowe’s Advantage Card.
When it comes to Lowe’s Advantage Card promotional financing offers, be sure to pay off the purchase within that time frame or you can be hit with interest from the date of the transaction. If you need time to pay off a purchase made at Lowe’s, while minimizing interest charges, Lowe’s Advantage Card could be a great fit.
Why you may want to look elsewhere
You can only use the card for purchases made at Lowe’s. That’s a problem if you want to buy brand-names that are exclusive to Lowe’s competitors, like Home Depot. The Annual Percentage Rate (APR) for purchases also doesn’t come cheap for new accounts so you might want to steer clear if you don’t think you’ll be able to pay off a balance before the promotional financing term expires.
Terms, conditions, restrictions and limitations apply.
Choosing a store credit card
Store credit cards can prove valuable but only if you pick the right one and use it wisely. Before you open up a new store account, here are a few things to consider first:
- How often will you use the card? The more you spend with a store credit, the more rewards you stand to earn. It’s easy to be persuaded to sign up for a card if you’re getting a nice discount upfront on your first purchase but the card may not be useful if you don’t shop at that particular store often. Since every new application for credit knocks a few points off your credit score, you need to be sure you’re going to get your money’s worth out of any store card you sign up for.
- Will you be able to pay in full each month? One of the things that store credit cards are notorious for is having purchase APRs that are higher than what most regular credit cards charge. It’s usually easier to get approved for one of these cards if you have a lower credit score but the trade-off is that you’ll pay more in interest. If you don’t think you can pay in full every month to avoid the interest charges, you might want to think twice about opening a store account.
- Do you want more flexibility in how you earn or redeem rewards? While store credit cards can help you rack up some generous rewards, you don’t have much leeway in how you can put them to work. Amazon applies your rewards to your statement balance but with the Gap Credit Card, you get the savings on money you’ll spend in the future, not purchases you’ve already made. If you don’t like being locked in with regard to earning or using rewards, we suggest taking a look at some of the other general rewards cards from our partners available in our credit card marketplace.
Independent Review Disclosure: All the information about the Amazon Prime Store Card, Target REDcard, Gap Credit Card, and Lowe’s Advantage Card has been collected independently by CreditSesame.com and has not been reviewed or provided by the issuers of these cards. The Amazon Prime Store Card, Target REDcard, Gap Credit Card, and Lowe’s Advantage Card are not available through CreditSesame.com.
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