Department Store Credit Cards

You must have already read about the first department store which issued its own credit cards. Right, it was JC penny in the 1950s.

At the present time, the most popular department store cards include Sears, Walmart, Target, Macy’s, Kohl's, Sam's Club, Barney’s, Bloomingdale's, Costco, etc. The list can be endless.

Although, the principle of work of these cards is the same, they are still beneficial for different items in terms of purchase.

Thus, Sears card is the most popular department store credit card used for clothing to electronics. Kohl’s is a popular clothing store.

JC Penney Exclusive Card membership offers the possibility to save throughout the year with 12 exclusive cardmember options:

• Special savings events for cardmembers only;
• Cardmember financing events;
• Fraud protection with zero fraud liability for unauthorized use;
• No annual fee;
• Plus, your payments are accepted at any JCPenney store.

The company also enables the cardholders to use online resources to pay bills and shop online 24 hours a day at jcp.com or shop by catalog at 1-800-222-6161 (Spanish at 1-800-336-7337). JCPenney Card is appropriate to shop as well at Catalog, Stonebridge Life Insurance, stonebridge-jcp.com, CVS/pharmacy and Eckerd Drug Stores.

Lowes now offers up-to-date online account information and payment options for your Lowe's Business and Consumer Credit accounts. If you are an average consumer then the following information is right for you. Lowes credit card features no annual fee; charges low minimum monthly payments; enables to pay bills and view transactions online.

Lowe's Business Credit Accounts in addition to the above mentioned specialties have to offer detailed invoices; toll free customer service as well as accounts honored at Lowe's locations nationwide.

Home Depot Credit Card enables the holder to earn 2,500 Bonus Points with first purchase. As well as other department stores, Home Depot made it possible for the card to be accepted at all The Home Depot locations and millions of other places worldwide that accept MasterCard. The card does not charge annual fee and is protected from damage or theft. To qualify for the Bonus Points with purchase offer, you must be approved for The Home

Depot Rewards MasterCard and use the card to make a purchase. Bonus points will be posted within 30 days of your first purchase. Offer is not available to existing cardholders. Moreover, it is only valid on internet applications.

Victoria's Secret Credit Card as well as Gift Card offers such benefits as: Angel Rewards for Gold Customers, Preferred client status, Birthday wishes and Angel Gifts, Catalogue subscriptions, Convenient minimum monthly payments, View your account information online.

Once your Angel Credit Card purchases reach just $500 in a year, you may be eligible to receive the Angel Gold Credit Card and begin earning Angel Rewards.

Macy's Credit Card is packed with exclusive benefits and special rewards. The card holders get information about sales; new trends and fashions; free catalogs; are not charged any annual fee; have the possibility for flexible payment plans; and receive automatic 10% off most of your macys.com purchases when opening new account.

A line of credit from a department store is no new to consumers these days. As a rule, department stores are incredibly interested in those customers who agree to sign up for these credit lines.

As a matter of fact a number or ‘attraction’ techniques are employed to persuade a person that he/she does need this credit from a store. However, before you decide to sign up for such an offer (even if you get a present for that) you have to distinctly understand what these department store credit cards are all about.

As a rule, stores offering credit cards provide 5%-15% discounts on the purchases for the card holders. Tempting, is not it?

First of all you have to understand that these cards are not Visas or MasterCards, but cards issued with a retail stores name on them for exclusive use at that store. One of the first issuers of such credit cards was J.C. Penney (1958).

Obviously, the idea turned out to be quite profitable since other stores undertook the trend and also started issuing their own credit cards. The followers included Gap, Kohl's, J.C. Penney, Dillard's, Target, Best Buy, Wal-Mart, Meijer's, Banana Republic, Sak's, Nordstrom's, even Bloomingdales, to name just a few.

Pros. Here we have to mention, that with these department store credit cards one can successfully establish credit. The requirements for retail cards are often less stringent than for major credit cards. A selective consumer can establish a positive credit history with retail store credit cards, which usually have lower credit limits and are therefore easier to obtain.

The next thing on the list of pros of department store cards is that they provide special financing offers. Applying for a retail card sometimes helps you score same-as-cash deals for larger purchases such as computers, appliances or furniture, allowing you to pay smaller monthly installments with no interest for a period usually 6 or 12 months.

Special savings events are also considered to be attractive to consumers. Except for introductory discounts, special savings events and sales just for the store credit card holders, there are often rewards programs where you can earn points for every dollar you spend on the store credit card, then cash the points in for, well, store credit.

Cons. Although credit limits are lower on department store cards,the interest rates for them are typically higher than major credit cards. If you can't discipline yourself to pay off your balance every month, retail store credit cards are not for you.

Open lines of credit affect credit history. The thing is that you can open a credit line every time you make a purchase and that one will be effective for that particular purchase only. However, eventually you may be burdened with up to 10 lines and soon forget you had them in the first place.

This is the way to negatively influence on your credit history.

So now that you know the pros and cons, how do you figure out if a retail store card is worth its weight? As always, you need to do a little math.

Performing math is a lot to ask when you're at the checkout counter with an armload of new purchases. But never sign on for a card without reviewing the fine print and finding out what you are signing up for. It might take away some of the fun of a shopping, but in the long run you'll be happier because you safeguarding your credit and the benefits of having good credit the ability to purchase a new home, for example.

In some cases, cons can be more serious and persuasive than pros. Some specialists advise to stay away from the store credit cards. Why? Is there anything more in the category of the disadvantages of store credit cards?

First of all, as a rule, stores offer their credit cards at the counter, when a person is aware of the sum he is going to spend on his purchase. A strong technique here is a discount up to 15% that you are receiving on the purchase in question. And the larger the purchase, the larger the discount is and thus, the temptation grows.

However, one has to bear in mind, that signing for any store credit card like Macy’s, Bloomingdales, or Home Depot just to get a one time discount may hurt you in the long run. You may save a few dollars now but it is likely to weaken your FICO credit score and be counter productive to any debt reduction plans you may have. They may be very easy to apply and qualify for, but they are nothing but debt traps, especially for college students looking to build credit.

Even if you intend to promptly pay off all balances, the mere act of applying for credit will hurt your FICO score because it is considered a hard pull credit inquiry. Although the hit is not significant, if you make it a bad habit of frequently applying for department or retail store credit cards to take advantage of one time discount offers, this could spell trouble. Every credit inquiry hurts your score so it is best to stay away from this temptation.

If you are trying to get out of debt or have been relatively debt free, you need to stay away from department store cards because they frequently have the highest interest rates. If you forget to make timely payment, your purchase discount savings could quickly be negated by high interest charges. Don’t fall into the discount trap. Remember, the discount is usually only a one time deal and you’ll be stuck with a worthless card afterwards. If you don’t heed this warning and still apply for them, remember to pay them off in full each month. This should be a debt reduction priority.

Unlike regular credit cards like Visa or Mastercard, department store cards can only be used for that particular store. If you have a Macy’s card, you can only use it at Macy’s, thereby severely limiting its usefulness.

And it is not that you should say NO to yourself every time you want to buy a pretty item at your favorite store, but sometimes you do have to set some expenditure limits. And the credit card is a huge temptation. You know you have money in the pocket and hope that by the end of the month you will be a little better-off and will cover the expenses on the card, otherwise the consequences would be catastrophic, just like described above.

If you are new to credit practices both in form of cash loan or credit card, you may consider a department store card to be your first introduction to credit.

There are several reasons for this. First of all, department store cards are rather easy to obtain. If you have a good job and have not missed payments on your other credit lines then you definitely qualify for this type of a credit card. The positive thing about this type of cards is that you can use then only at the department store and not for purchasing groceries or other emergencies. This decreases the risk of spending your credit limit too soon.

Besides the easiness of approval and limited possibilities for money ‘waste’, you also get rewards, points and special sales opportunities. Department store card holders are often privy to sale events before the general public finds out. You may also be able to rack up points toward future purchases. But beware: don’t spend more than you have just to establish points! Store card holders are often the first to receive coupons in the mail. And you might be eligible for special services as well, such as layaways and phone orders.

It is better not to ‘collect’ credit cards from different stores, because eventually they will turn out to be a credit burden rather than benefit. So, which department store should you choose to give your preference to?

The answer is pretty simple and easy to come up with: the one where you shop the most. It can be Macy’s, Sears, Bloomingdales, JC Penney, even Home Depot, to name just a few.

According to certain ratings, Sears’s credit card turns out to be the most popular. The question is: what makes it so special?

First of all, it is accepted at thousands of locations, including but not limited to: all Sears stores, Sears Hardware, Sears Shop at Home Catalogs, Sears Auto Center, Sears Authorized Dealer Stores, Kmart stores, Lands End, The Great Indoors, Sears Flowers, AOL (for monthly subscription fees) and Avis Rent a Car.

The Sears card enables the holder to return purchases without the necessity of a receipt.

If you forget your Sears Card, simply show us valid I.D. to be provided with a temporary shopping pass.

Online payments and 24/7 account access at Searscards.com is another privilege of the card. Online to a cardholder the following tools are available:

• Check your balance or available credit
• See when a payment is due or posted
• View unbilled activity and statements
• Pay your bill online
• Get account information by email, text-enabled phone, or mobile device
• Write to Cardmember Services with secure messaging

The card deprives you of any need to worry about card security. With $0 Liability, you are protected from all unauthorized charges on your Sears Card.

One of the categories in which Sears card bested other department stores is the reward program. With the card the holder can earn 1 Sears Club™ Point per $1 everywhere the card is accepted; earn DOUBLE points at Sears’ everyday; convert 1,000 points into $10 in free rewards at Sears - including travel; as well as enjoy exclusive cardholder benefits, including special sales and competitive finance offers.

Macy’s Store Credit Card is another popular card among the customers. It comes in 4 different types: Red Star Rewards, Gold Star Rewards, Platinum Star Rewards and Elite Star Rewards.

Once you apply for Macy’s Store credit card, you are automatically a Red Star Rewards Cardholders.  Depending on amount purchases at Macy’s store, you can be upgraded to Gold, Platinum or Elite.  To qualify for Macys Store Gold Visa Card, you need to make $500-$999 in Macy’s purchases per year.

The Macy’s credit card is used by many people who are fans of the legendary department store. However, a closer look reveals that there are many pitfalls associated with this credit card from Macy’s. Read our review to find out why.

There are really some attractive features with the card. There is usually a signup bonus offering a small discount of 10% on your first purchase. This is actually the only impressive discount offered through its Star Rewards program. The other big disadvantage is that it confines you to their stores only. Even if you love to shop there, it’s probably not the only place you shop.

The interest rates that Macy’s credit card charges are extremely high, making the card very unappealing. Even if you pay off your balance in full each month, you never know what the future brings in the event you lose your job or some other financial obstacle. In the event you have to carry a balance, it’s not fair to be burdened with the high interest rates they charge.

Macy’s charges an annual percentage rate of 22.9 percent and late fees of anywhere from $15 to $35. If you fail to make the minimum payment for two consecutive billing cycles or you miss a payment twice in a six-month period your interest rate will go up to 24.9 percent. But if you pay your bill on time for six months, the rate will go back down to 22.9 percent. There is no annual fee or over-the-limit penalties.

The rewards program as well as other major advantages is favorable for the rich only, i.e. those who really spend incredible sums of money at the store. For instance, the Macy’s Red Star Rewards Visa doesn’t even allow customers to earn rewards certificates. To get the most benefits you need the Elite Star Rewards level, and even then, you only get 3% on purchases at their stores. The Gold and Red Star levels pay even less 1.5% at their stores. That is why before you get to earn a few dollar reward you’d better spend thousands of dollars there first. Is it worth it?

There are, however, certain perks associated with the Macy’s card. To begin with, a card holder receives fifteen percent off all purchases for two days after he receives the card. So you might want to apply when you know you have a lot to buy. As a card owner, you’ll be privy to monthly cardholder-only savings events. Besides, cardholders have up to 180 days to return an item even without a receipt. Such other privileges, as free gift wrapping, basic alterations and package delivery (up to $60) for those who spend at least $1,000 a year on a Macy’s card, are also available for the cardholders only.

So, the possible conclusion to this short narration may be as following: if you shop at Macy’s a lot anyway, this is a good card to have in your wallet. But only in case you pay the entire bill every month. At an APR of 22.9 percent, you don’t ever want to carry a balance.

One of the major stores which offer credit cards of its own is Home Depot. The company issues several store credit cards catered to different consumers.  

The most popular Home Depot credit cards are “The Home Depot Consumer Credit Card” and the “The Home Depot Business Rewards MasterCard.”

The Home Depot Consumer Credit Card is not a Visa nor a MasterCard. It is a store credit card issued by Home Depot. As any other department store card, this one can only be used at Home Depot and no where else. The most attractive feature on this card is in case you make a purchase of $299 or more. There is no annual fee and the APR ranges from 17.99% to 26.99% (although they mention on their site that only half of the applicants get a rate of less than 25.99%).

Home Depot Business Rewards MasterCard is targeted at those in the contracting industry who make a lot of purchases on Home Depot. As an incentive, you can earn 3,500 bonus points after your third purchases. You also earn 3 points for every dollar that you spend on the card 2 points for every dollar that you spend on gasoline, restaurants, groceries and drugstores. For other regular purchases, you earn one point for every dollar you spend on the card.

Points can be redeemed for Home Depot gifts and others as well (their partners). You can also redeem points for airline tickets from Home Depot's reward program.

The Home Depot Consumer Credit Card appears to be a store credit card that is designed for consumers who shop at Home Depot a lot and want to get an interest free period where they do not have to pay anything (for 6 months). As they have pointed out on their site, only half of the applicants get an APR rate below 25.99%. Thus, it is a good start for those who have poor credit history and look for a "starter" store credit card. The advantage is that aside from the benefits of being able to use the card at Home Depot, you can also use the card to rebuild or build a credit history if you have no credit or poor credit. If you fall into this category, you might actually want to consider a secured credit card instead as they are likely to have a lower APR and you can use them anywhere.

Commercial credit cards are intended for business use, and many independent, licensed contractors prefer the Home Depot card because of its plans to help business owners track charges by job. There are two types of commercial options available: the revolving charge card and the more strict commercial account.

The charge card option provides itemized billing and free employee cards for all sizes of businesses with no annual fee. Cardholders have the option to pay the account in full or make monthly payments just as with any standard consumer credit card. Free employee cards are available.

The commercial account variation also includes itemized billing, but uses unique identification numbers for each authorized user, so cardholders can see who is making which purchases. Account holders have the option of making low monthly payments or paying the balance in full each month.