Author: Mary Collins
Building and maintaining a healthy credit score is essential if you want to unlock the financial freedom that comes with having access to store cards, lines of credit, and other financial products. Unfortunately, many people find that they have less-than-stellar credit, leaving them in a difficult financial situation.
Fortunately, many store cards are available to those who don’t qualify for traditional credit cards.
Here are some of the best store cards for people with bad credit
Amazon Visa Rewards Card
In collaboration with Chase, Amazon provides two credit cards. Even though the basic reward card lacks some of the premium features of its Prime version, it more than compensates for its accessibility. The majority of experts consider that this is the best store credit card for applicants with poor credit.
Benefits and Rewards
- This card offers a flat 3% return when you make an Amazon purchase. That 3% also applies to Whole Foods retail stores because Amazon owns Whole Foods!
- This card is not closed-loop. That is to say, you may use it everywhere and get 2% cashback when you pay at restaurants, pharmacies, and gas stations.
- You receive Amazon Rewards points as cashback, typical of popular store credit cards for people with poor credit. However, it does mean that you may only use the cashback on Amazon purchases, regardless of how much you earn.
- You’ll receive a $50 Amazon Gift Card when you are approved.
Capital One Walmart Store Card
Most of us shop at Walmart because it is one of the biggest retail chains in the world. Additionally, if you’re one of the millions of Americans who frequently purchase there, this card gives some respectable perks to go along with its affordable prices. But keep in mind that since this is a closed-loop card, you cannot use it to make purchases at other merchant locations. It also has one of the most flexible reward redemption policies among accessible shop credit cards.
Benefits and Rewards
- Purchasing from Walmart brings in the best benefits. In particular, the card offers 5 points for every dollar spent throughout the first 12 months at Walmart and Murphy USA shops. Then, you can earn two points for every dollar after the first year.
- You may use those points to pay for purchases on Walmart.com by redeeming them on your account page or through the Capital One app. Alternatively, you can use the points to pay off the remaining balance on your card or even as a statement credit.
Wayfair
Wayfair.com and stores run by Wayfair accept the company’s standard store card. These include Birch Lane, Perigold, AllModern, and Joss & Main. Wayfair store credit cards for bad credit are almost perfect, judging by the extensive assortment of these stores. However, because of the higher APR, it’s advisable to settle the entire debt as soon as you can.
Benefits and Rewards
- There are two incentive programs available. The first one is a standard 5% back offer. You can use your Rewards Dollars to make other purchases on Wayfair websites.
- The other provides qualifying orders with interest-free financing for up to 24 months. This card may help you divide costs if you’re buying many new furnishings soon.
Final Words
According to a recent study, more than 60% of people with bad credit should consider applying for a store card. Store cards are great ways to build your credit while sparing yourself some debt. They offer lower interest rates and convenient rewards, so they can be a valuable addition to your credit score.