Store cards are often easier to get than bank credit cards, especially if your credit history is thin or damaged

Store credit cards have lower approval standards than Visa or Mastercard issued by banks. They look more at whether you shop at that store than at your credit score. A store like Target, Kohl's, or Best Buy may approve you when a bank would decline you — even if you have no credit history, a recent late payment, or a lower score.

The tradeoff is real: store cards charge higher interest rates (often 20% to 30%), work only at one retailer, and offer rewards only on purchases there. But if your goal is to build or rebuild credit, a store card can be a working tool. You get a line of credit you can actually use, make on-time payments, and show lenders you can handle debt responsibly.

Key Takeaways

  • Store cards approve applicants with no credit history or damaged credit more often than bank cards do, because they care more about your shopping habits than your score.
  • Interest rates on store cards run 20% to 30% and only apply to purchases at that one store, so they work best as a building tool, not a long-term card.
  • Cards from retailers like Target, Kohl's, Best Buy, and Amazon are among the easiest to get, though approval odds change based on your credit profile and income.
  • Paying your store card bill on time every month reports to the three credit bureaus and helps raise your score faster than a secured card in many cases.
  • You should plan to close or stop using the store card once you build enough credit to get a bank card with lower rates and better rewards.

Why store cards approve people bank cards reject

A bank card issuer (Visa, Mastercard, American Express) makes money on interest and fees. They want borrowers with proven payment history and higher scores because the risk is lower. A store card issuer makes money on interest and on the merchandise you buy. They have a financial reason to approve you: if you get the card, you are more likely to shop there, and they profit on both the sale and the interest.

Store card issuers also know their own customer base. They can see whether you shop at their store, how often, and how much you spend. That data matters more to them than your credit score. A person with no credit history but a steady shopping pattern at Target may look like a better bet to them than someone with a 650 credit score who has never set foot in the store.

This does not mean approval is automatic. You still need to be at least 18, have a valid Social Security number, and show some income. But the bar is lower, and the decision happens faster — often in seconds at the register or within a day online.

Store cards that tend to have the lowest approval bar

Target RedCard, Kohl's Card, Best Buy Card, and Amazon Prime Store Card are among the most commonly approved. These retailers issue their own cards (not through a bank partner), which gives them full control over approval decisions. They tend to approve people with fair credit (580–669 range) and sometimes people with no credit history at all.

Walmart and Amazon also offer store cards, though Amazon's is harder to get if you do not have Prime membership or existing credit with them. Kohl's is known for approving applicants with lower scores and thinner files. Target and Best Buy fall in the middle — easier than bank cards, but not as lenient as Kohl's.

Approval odds vary by your credit profile, income, and how much you shop at that store. A person with a 600 score and a $30,000 annual income may get approved for Kohl's but declined for Best Buy. The only way to know is to apply. A hard inquiry (the pull that lowers your score by a few points) happens when you apply, so do not apply to multiple store cards in one week.

What happens to your credit score when you open a store card

Opening a store card triggers a hard inquiry, which lowers your score by a few points for a few months. But once the card is open and you use it responsibly, the benefit outweighs the damage. Each on-time payment reports to Equifax, Experian, and TransUnion. Over six to twelve months of on-time payments, your score usually rises faster than it would without the card.

The card also adds to your available credit (your credit limit). If you keep your balance low — ideally under 30% of the limit — your credit utilization ratio improves, which helps your score. A $500 limit with a $150 balance looks better to lenders than a $500 limit with a $450 balance, even though both are the same card.

Store cards report payment history just like bank cards do. Late payments hurt you the same way. Missing a payment by 30 days or more will drop your score significantly and stay on your report for seven years. So treat a store card like any other debt: pay at least the minimum on time, every time.

How to apply and what to expect

You can apply in-store at the register or online through the retailer's website. In-store applications take seconds and give you an instant decision. Online applications usually take a day or two. You will need your Social Security number, date of birth, address, and current income.

If you are approved, you get a card number immediately (in-store) or within a few days (online). You can use it right away. If you are declined, you can ask why — the issuer must tell you under the Fair Credit Reporting Act. Common reasons are low income, too many recent hard inquiries, or a very low credit score. If you are declined, wait three to six months, improve your income or score, and try again.

Do not apply for multiple store cards at once. Each application triggers a hard inquiry, and multiple inquiries in a short time signal to lenders that you are desperate for credit, which lowers your odds of approval on the next card. Space applications out by at least three months.

The real cost of store card interest rates

Store cards charge 20% to 30% annual interest, compared to 15% to 25% for bank cards and 0% to 10% for premium cards. That difference matters only if you carry a balance. If you pay your full statement balance every month, you pay zero interest, and the rate does not matter.

But if you carry a balance, the cost adds up fast. A $1,000 purchase at 25% interest costs you $250 per year if you make no payments. Even making minimum payments, you will pay hundreds in interest before the balance is gone. Store cards are a tool for building credit, not for financing purchases. Use them for small, planned purchases you can pay off within one or two months.

Many store cards offer a promotional 0% interest period for the first few months (often 6 to 12 months on larger purchases). Read the offer carefully before you apply. The 0% period applies only to purchases made during the promotional window, and only if you make on-time payments. One late payment can end the promotion and trigger the full 25% rate retroactively.

When to close a store card or move on

Once you have made 12 to 18 months of on-time payments on a store card, your credit score should improve enough to get a bank card with better terms. At that point, you have two choices: close the store card or keep it open and stop using it.

Closing the card removes available credit from your file, which can hurt your score slightly. Keeping it open but unused preserves that credit and helps your utilization ratio. The downside is an unused card can be closed by the issuer after a year or two of inactivity, which defeats the purpose. A middle path: use the store card once or twice a year for a small purchase you pay off immediately. That keeps the account active without tempting you to carry a balance.

Once you have a bank card with a lower rate and better rewards, use that for most purchases. Use the store card only when you are shopping at that store and want the store-specific rewards (usually 5% to 10% back on purchases there). The store card becomes a secondary tool, not your primary credit line.

Frequently Asked Questions

Can I get a store card with no credit history at all?

Yes, store cards are one of the few options for people with no credit history. Kohl's and Target are known for approving first-time applicants. You will need a job or other income source to list on the application. A thin file (no credit history) is easier to approve than a damaged file (late payments or collections), so your odds are good.

What is the difference between a store card and a store-branded bank card?

A store card is issued by the retailer itself (Target, Kohl's). A store-branded bank card is issued by a bank but carries the store's name and logo (like the Amazon Prime Visa). Bank cards have stricter approval standards but lower interest rates and work everywhere Visa or Mastercard is accepted. Store cards work only at that retailer but approve more easily.

Will applying for a store card hurt my credit score?

The application itself (a hard inquiry) lowers your score by a few points for a few months. But the benefit of an on-time payment history and lower credit utilization usually outweighs that damage within six months. The key is making every payment on time and keeping your balance low.

Can I use a store card to build credit if I have bad credit?

Yes. A store card reports to all three credit bureaus, so on-time payments help rebuild your score even if you have past late payments or collections. Start with a card from a lenient issuer (Kohl's, Target), make small purchases, and pay in full every month. After 12 to 18 months of perfect payments, your score should improve enough to get better options.

What happens if I miss a payment on a store card?

A missed payment reports to the credit bureaus and stays on your report for seven years. Your score drops significantly, and the issuer may charge a late fee (usually $25 to $40). If you miss a payment by 60 days or more, the issuer may close the account or send it to collections. If you miss a payment, contact the issuer immediately and ask about a hardship program or payment plan.