Author: Harvey Specter
Most American stores offer their regular customers customized credit cards they can use to make payments at their stores. Using these credit cards allows customers to enjoy discounts and other sales deals.
As a frequent shopper, the store card of your favorite retail store is a great way to save money while shopping.
Let’s review the store credit cards of the top 4 most reputable retail stores in the United States and conclude on the best choice(s).
Ever shop at any of these: Amazon, Costco, Target, and Walmart? Yes, right? then, you need to pay attention.
Branded Card Options
Store cards are divided into two types:
- Standard – This applies only to chain purchases (Amazon Prime Store, Amazon Store, Target RedCard, and Walmart)
- Co-branded Cards – These cards (Visa Costco Anywhere, Amazon Prime Rewards, Amazon Rewards Visa Signature, and Capital One Walmart Rewards) can be used almost everywhere, not only in selected stores. Nevertheless, Walmart cards don’t have any limitations.
Card Issuance Policy
Membership is required for both Costco Anywhere Visa Card and Amazon Prime Cards (Visa Card for Amazon Prime Subscription and Amazon Prime Store Card). Costco’s annual membership starts at $60 for Gold Star members, while Amazon Prime starts at $119. However, membership is not necessary for Amazon Rewards Visa Signature Card, Amazon Store, Target RedCard, and Walmart.
Fees and Payments
Store credit cards usually don’t have a fixed fee, but some require an annual membership fee. Amazon Prime Store and Amazon Store cards have a 0% interest rate even during the grace period, however, there are some funding rules.
For spending of $150 or more, the amount should be repaid within 6 months
For spending of $600 or more, the amount should be repaid within 12 months
For spending of $800 or more, the amount should be repaid within 24 months
Upon the expiration of the grace period, a credit interest rate of 25.99% is set.
Store Cards Bonus Program
All the above store cards have some great bonuses, they include:
Costco Anywhere Visa – This card gives a 4% gas purchase refund for the first $7,000 in annual fuel cost and a Cashback of 3% on dining and tours. Users can also earn a 2% cashback on Costco.com purchases.
Amazon Prime Rewards – Users will enjoy a 5% discount on purchases at Amazon.com and Whole Foods Market. Furthermore, there is a 2% cashback from restaurants, gas stations, and pharmacies. All other purchases are subject to a 1% surcharge.
Amazon Visa Rewards – You can get 3% cash back on purchases made at Amazon.com and Whole Foods Market. An additional 2% cash back for spending at restaurants, gas stations, and pharmacies. Amazon Prime provides a 5% cashback on Amazon.com.
The Capital One Rewards Card from Walmart – This card offers 5% cash back on purchases made on Walmart.com, and 2% on purchases at Walmart stores, gas stations, restaurants, and travel stores.
The only card without a rewards program is the Amazon Store Card. Nevertheless, there are also disadvantages to applying for a store credit card:
- Many stores check customers’ creditworthiness before issuing a credit card
- Even if thought the card isn’t issued by a bank, it will affect your rating
- If the owner doesn’t repay the loan on time, the rate is increased to 25% which is quite noticeable
Conclusion
Please read all the terms and conditions carefully before opening a credit card. And pay attention not only to bonuses and tempting offers but their shortcomings.