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Store credit card. What is it ?

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Anonymous
Not applicable

Store credit card. What is it ?

I believe is a credit card issued by a retailer with or without a network like Visa, Mastercard, American Express or Discover. I have read different opinions about it.

Message 1 of 13
12 REPLIES 12
micvite
Frequent Contributor

Re: Store credit card. What is it ?


@Anonymous wrote:

I believe is a credit card issued by a retailer with or without a network like Visa, Mastercard, American Express or Discover. I have read different opinions about it.


Pretty much, though typically store card refers to the ones without a network that can only be used in certain stores.

Ex: 742, TU: 726, EQ: 733 03/31/2021
Discover it cashback: $10900
Citi DC: $13000
WF Propel: closed 2k
Amex BCED: $3000
Amex Gold: $NPSL
Amex Plat: NPSL
Cap1 QS: $3200
Cap1 VX $50k
VS CC: $2900
Kohls: $3000
Synchrony car care: $3000
citi best buy visa: $8500
Message 2 of 13
Anonymous
Not applicable

Re: Store credit card. What is it ?

The most important credit card websites apply the broad concept of store credit card.

Message 3 of 13
fatcomic
Regular Contributor

Re: Store credit card. What is it ?

Store credit card is a card that is limited to use only at the issuing merchant's stores.   Examples would be the old Sears credit card (am I showing my age?) or Best Buy credit card (not the Visa version).

 

A store card with a Visa, Master Card, AmEx etc logo is a co-branded card.   For example Best Buy also has a co-branded Visa card, it gives some perks when you use it at Best Buy, however you can also use the card at any other merchant that accepts Visa cards.   

 

A co-branded card gives more flexibility allowing you to use it at more places, however sometimes the underwriting can be different for a store card vs a co-branded card.

 


Message 4 of 13
Anonymous
Not applicable

Re: Store credit card. What is it ?

That co-branded card = open-loop store credit card

Message 5 of 13
longtimelurker
Epic Contributor

Re: Store credit card. What is it ?


@Anonymous wrote:

The most important credit card websites apply the broad concept of store credit card.


What do you count as the most important sites?

 

The real question is what will you use the definition for, i.e. what makes the distinction (whatever it is!) significant?   There are lots of possible distinctions.   Consider, for example, the Best Buy Visa vs say the Elan Fidelity Visa.   These are both cobrands, the best buy visa can be used to buy stuff at Best Buy (hopefully with some enhanced rewards) but the Elan Fidelity Visa doesn't really have that sort of option.   (Well, as of recently if you have enough at Fidelity the card will provide enhanced rewards everywhere else!) So should we subcategorize?    Probably not, unless there is some pattern, to do with underwriting ease, score considerations etc.

Message 6 of 13
fatcomic
Regular Contributor

Re: Store credit card. What is it ?


@Anonymous wrote:

That co-branded card = open-loop store credit card


Yes, some sites call the co-branded cards an open-loop cards, they are the same thing.   

 

 


Message 7 of 13
FormerCollegeDJ
Frequent Contributor

Re: Store credit card. What is it ?

One of the big distinguishing characteristics of store branded credit cards (whether they are store-only, closed loop cards or open loop, Visa/Mastercard/American Express network cards) is any rewards you earn from spending money using the cards is almost always in the form of rewards that can only be used at the store branded on the card.  For example, with either the Citi Best Buy Visa card or the (Citi) Best Buy credit card, the rewards you earn are in the form of Best Buy Rewards points.  When you earn 250 points, you get a $5 Best Buy gift certificate that can only be used at Best Buy or BestBuy.com.  You CANNOT use the rewards earned on any flavor of Best Buy-branded credit card for straight cash back or a statement credit, or transfer them to another retail partner.  (That last option often is available for travel-related co-brand cards, such as hotel, airline, or Amtrak cards.)

 

The reward restrictions on most co-branded cards is one of the major reasons why people tend to recommend not getting store-branded cards, unless you shop frequently at a given store and can really benefit from the rewards given through the card at that store.  To a lesser degree the same applies with airline-branded cards relative to more general travel cards tied into one of the card issuer's own rewards programs (such as American Express Membership Rewards, Chase Ultimate Rewards, or Citi ThankYou Rewards).

Playing the credit card rewards game since early May 2020.

Current credit cards:
American Express: Hilton Honors
Bank of America: Customized Cash Rewards Visa
Capital One: SavorOne MC
Chase: Amazon Visa, Freedom Unlimited Visa, Freedom Flex MC
Citi: Sears/ThankYou Rewards MC, My Best Buy Visa, Custom Cash MC
Comenity: AAA Travel Advantage Visa
Discover: Cash It
Elan: S&T Bank Max Cash Preferred Visa
FNBO: Amtrak Guest Rewards Platinum MC
PSECU: Founder's Visa
U.S. Bank: Cash+ Visa
Wells Fargo: Autograph Visa
Store cards: Kohl's

Next target credit cards: Wells Fargo Bilt Mastercard (probably), Truist Enjoy Travel Visa (maybe)
Message 8 of 13
Anonymous
Not applicable

Re: Store credit card. What is it ?

longtimelurker some websites are: Wallethub, Nerdwallet, US News and World Report, bestcards.com, supermoney.com

Message 9 of 13
AverageJoesCredit
Legendary Contributor

Re: Store credit card. What is it ?


@Anonymous wrote:

longtimelurker some websites are: Wallethub, Nerdwallet, US News and World Report, bestcards.com, supermoney.com


All those sites i would imagine get paid to push certain credit cards. 

Message 10 of 13
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