The best store credit cards of 2022
Editor's note: This is a recurring post, regularly updated with new information.
You might wonder if it's worth applying for a store credit card to help you save on purchases or get access to sales and discounts. Retail stores often pitch store credit cards to customers at the register (or online checkout these days), enticing you with a discount on your purchase in exchange for signing up.
Typically, store credit cards aren't a great idea and are unlikely to rank among TPG's picks for the all-around best credit cards. The sign-up bonuses usually aren't great, rewards aren't flexible and APRs are higher than average. However, they aren't all bad by any stretch. In fact, many on staff have a store card or two -- sometimes dating back to before applying for more flexible rewards credit cards. Most Americans have at least one store credit card, and I'll admit there are a few occasions when I've considered a store card myself.
Today, I'm walking through some of the best store credit cards, as well as some alternative rewards credit cards you can use to maximize those same purchases.
Overview of the best store credit cards
- Amazon Prime Rewards Visa Signature Card
- Target REDcard
- Costco Anywhere Visa® Card by Citi
- Capital One Walmart Rewards® Mastercard®
The information for the Amazon Prime, Target REDcard and the Capital One Walmart cards has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Best Store Credit Cards
Annual fee: $0 (but you must have a Prime Membership, which is $119 a year)
Sign-up bonus: N/A
Rewards rate: Earn 5% back on Amazon (including Prime membership) and Whole Foods purchases; 2% at restaurants, gas stations and drugstores.
When it makes sense to apply: If you already have an Amazon Prime membership and regularly spend money at Amazon and Whole Foods, this is a solid store card to have in your wallet. Most credit cards don't code Amazon as a bonus category (though rotating category cards occasionally offer 5% cash back at Amazon one quarter a year). With the Amazon Prime Rewards Visa Signature Card, you earn 5% cash back at Amazon and Whole Foods.
The card also earns decent rewards across regular spending categories, with 2% back at restaurants, gas stations and drugstores. Those rewards can be redeemed toward Amazon purchases, cash back, gift cards or even travel, making this a versatile card for any Amazon Prime lover.
I've long been a Prime member, but since staying at home has become the new norm, I've been spending more on Amazon. I've bought several books, home office supplies, storage bins to organize my closet — and that's on top of my additional usage of things that come free with my Prime subscription, like streaming (I've been obsessed with The Expanse recently). It's made me seriously consider adding this card to my wallet.
Annual fee: $0
Sign-up bonus: N/A
Rewards rate: Get a 5% discount on all eligible Target purchases.
When it makes sense to apply: This card doesn't earn typical rewards, but it does come with a 5% discount on every eligible Target purchase, both in-store and online. Cardholders also get 5% back at Starbucks locations inside Target. Since Target spending doesn't earn bonus rewards with many other credit cards, frequent shoppers can save a lot of money by using the Target REDcard. Best of all, Target sells many third-party gift cards (such as Disney gift cards), where you can immediately receive a 5% discount on gift card purchases as well.
You'll also get a 10% discount coupon every anniversary (which I would strategically use on larger purchases), 30 extra days for returns and free shipping on most Target online purchases. Plus 10% back on Hotels.com bookings.
This certainly isn't a lucrative card, but for no annual fee, it's worth it if you frequently shop at Target. I know a lot of friends who have turned to Target for groceries now that they are cooking at home more often, so this card could also help you save a pretty penny on your groceries and at-home self-care items.
Annual fee: $0 (with paid Costco membership)
Sign-up bonus: N/A
Rewards rate: Earn 4% cash back on eligible gas, and EV charging purchases (up to $7,000 per year; then 1%); 3% on restaurants and eligible travel purchases; 2% on all other purchases from Costco online and in-store.
When it makes sense to apply: If you're a dedicated Costco fan who already has a membership (which costs $60 for Gold Star and $120 for Gold Star Executive), this card doesn't come with an annual fee. While you're only getting 2% on general Costco purchases, this is a decent Swiss Army knife card if you want to earn cash back across multiple spending categories.
You'll also get purchase protection. The downside? You have to wait an entire year to get your cash-back rewards and you must redeem them at Costco for either merchandise or cash rebates. Costco mails out cash rebates once a year — after your February billing statement closes — instead of letting users redeem them at any point.
Annual fee: $0
Sign-up bonus: Earn 5% on in-store Walmart purchases for the first 12 months when you use Walmart Pay.
Rewards rate: Earn 5% at Walmart.com, including grocery pickup and delivery; 2% back on in-store Walmart purchases (including Murphy USA and Walmart gas stations), restaurants and travel.
When it makes sense to apply: Walmart purchases are almost always excluded from supermarket and grocery store bonus categories, with the exception of the occasional rotating bonus category. If you're shopping almost exclusively for groceries and other expenses at Walmart, get gas at Walmart fuel stations and shop at Walmart.com, it makes sense to look at a card that earns rewards at Walmart.
The good thing about the Capital One Walmart Rewards Mastercard is that the cash back you earn on your purchases can be used for a statement credit, gift cards or redeemed for travel through Capital One. You aren't limited to using these rewards for just Walmart purchases like some other store cards.
Reward cards to maximize store purchases
If you don't think you'd be able to justify having a specific store card, there are several reward credit cards that can help you maximize your purchases.
Chase Freedom Flex
Annual fee: $0
Sign-up bonus: Earn $200 after you spend $500 on purchases in the first three months of account opening.
Standout benefits: You could earn up to $300 each year in bonus cash back if you're maximizing categories every quarter. These categories vary, but you'll typically find department stores and superstores like Target or Walmart make an appearance at least once a year, as well as purchases at Amazon.com. Department stores often have their own retail cards they try to market, though the Freedom Flex is an excellent alternative.
If you have a Chase Ultimate Rewards card — such as the Chase Sapphire Reserve, the Chase Sapphire Preferred Card or the Ink Business Preferred Credit Card — you'll also be able to pool the cash back you earn on the Freedom Flex and redeem it for travel through the Chase portal for a bonus or transfer to an airline or hotel partner.
Annual fee: $0
Sign-up bonus: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
Rewards rate on store purchases: Earn 1.5% back on every purchase.
Chase recently added three higher-earning categories, allowing cardholders to boost their rewards on the following: 5% back on travel purchased through Chase Ultimate Rewards; 3% back on dining; and 3% back at drugstores.
Standout benefits: While the Freedom Unlimited isn't as flashy as some of the other cards on this list, remember that you're getting a guaranteed 1.5% cash back on most purchases and even higher on the categories listed above.
If you aren't particularly loyal to one store for your shopping needs, this is a great card to make sure you're earning bonus rewards no matter what. And just like with the Chase Freedom, you can pair the Chase Freedom Unlimited with other Chase cards to maximize your redemption options beyond cash back.
Annual fee: $0
Rewards rate on store purchases: Earn 2% back on purchases — 1% when you buy and 1% when you pay your bill.
Other standout benefits: Similar to the Chase Freedom Unlimited, the Citi Double Cash earns flat-rate cash back across all purchases. Whether you're shopping at Walmart, Target, Macy's or any store in between, you'll get 2% back with this card. Plus, you can now convert Citi Double Cash rewards into ThankYou rewards, making this card even more valuable.
What do store cards offer cardholders?
Store credit cards generally offer brand-specific rewards to cardholders. Some offer one-time discounts as welcome offers or ongoing discounts rather than straightforward rewards. You might also get "elite status" that entitles you to exclusive sales and rewards. The more attractive store cards are "open loop," meaning you can use them anywhere the payment network is accepted. However, some are private label or closed-loop, meaning they are only accepted at a specific merchant.
When does it make sense to have a store credit card?
There are a few scenarios where it makes sense to have a store card. For one, if you're spending thousands of dollars every year at a particular store that doesn't earn decent rewards with a general rewards card, the rewards earned through the store card might be worth it.
One of my very good friends swears by her Macy's card because of the discount she gets on every purchase. She's shopping either in-store or online multiple times a month, and none of her other cards offer any meaningful rewards on department store purchases. Each year, her card probably saves her anywhere from $300-$500 between discounts, exclusive deals and free shipping. That makes it worth it for her to have the card.
Those trying to build or repair their credit can also find that it makes sense to have a store credit card. Generally speaking, store credit cards are easier to get approved for than standard rewards credit cards. If you're just starting out and don't have enough credit established to be approved for a card such as the Chase Sapphire Preferred Card, you might have better luck with a store card. Just make sure you're choosing a store card that you will get value from (so don't apply for an Old Navy credit card if you rarely shop there).
Once you've built up a good credit score and applied for a more substantial rewards card, you can still keep the store card (they generally don't come with an annual fee) in the back of your wallet while you use your more rewarding card on the bulk of your purchases.
Using shopping portals
Since most of us are shopping online at our favorite retailers these days, there is another way to earn rewards and maximize those purchases — online shopping portals. Whether you want additional cash back, airline miles or even bonus transferable points on your credit card, there's likely a shopping portal out there to help you. And these rewards are typically stacked on top of any rewards you'd get through your credit card. So, for example, if you get 1.5% back with the Chase Freedom Unlimited and use the American Airlines shopping portal to get 3x miles, you're double-dipping rewards.
I use a portal aggregator like CashbackMonitor.com to check which portals have the highest bonus available on a given online store. Once you click into the store through the shopping portal, you can complete your order as usual and get rewards.
Store credit cards may not be as lucrative as travel credit cards or even top cash-back credit cards, but that doesn't mean every store card is worthless. There are situations where it makes sense to keep a store card or two in your wallet to use on certain purchases, and there are actually a few store cards such as the Amazon Prime Rewards Visa that make for decent all-around cards. However, you're most likely going to be better off with a rewards credit card that provides a way to earn flexible rewards across a variety of purchase categories.
No matter what kind of card you're in the market for, make sure you're comparing your options and choosing the right card for your spending habits.
Additional reporting by Benét J. Wilson
Featured photo by Allen J. Schaben / Los Angeles Times via Getty Images
Updated on 5/3/21.