Writer: Brittney Mayer
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
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Department stores are a feast for the eyes. With their dazzling lights, gleaming counters, and inviting window displays, they naturally draw you in to discover their name-brand offerings. To make it even more enticing, many department stores provide store credit cards that offer special rewards and discounts.
What’s not as pretty, however, is having your credit card application denied because of your poor credit. But there’s no need to feel too rejected — most store credit cards aren’t the deal they seem to be. Store cards usually charge high APRs and can only be used, or have their rewards redeemed, on branded purchases.
Typically, rewards cards let you unlock better deals and more substantial savings. The catch is, if your credit isn’t top-notch, your choices are limited, whether you’re eyeing a store credit card or a general rewards card. But don’t worry; even with a lower score, there are still several cards worth exploring.
In this article, we’ll explore a variety of cards you might want to consider, from traditional credit cards to some of the top department store cards for bad credit.
First, Consider an Open-Loop Card For Bad Credit
Many store cards sound sweet to the ears but have limitations that can sour your credit score. Branded, closed-loop credit cards not only prohibit how or where you use them, they also require a hard credit pull to open. So if you’re building credit and trying to pay down debt, it’s hard to warrant a department store credit card that can only be used on a shopping haul at your local mall.
Instead, you’re better off staying on budget and scooping up extra savings in the process through an all-purpose, open-loop credit card that can be used on everyday purchases. The best credit card issuers for bad credit have easy online applications and flexible conditions that will work your needs.
- Up to $1,000 Initial Credit Limit
- See if you Pre-Qualify with No Impact to your Credit Score
- Less than perfect credit? We understand. The Surge Mastercard is ideal for people looking to rebuild their credit.
- Unsecured credit card requires No Security Deposit
- Perfect card for everyday purchases and unexpected expenses
- Monthly reporting to the three major credit bureaus
- Use your card everywhere Mastercard is accepted at millions of locations
- Enjoy peace of mind with Mastercard Zero Liability Protection for unauthorized purchases (subject to Mastercard guidelines)
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 5 minutes | 35.90% Fixed | Yes | 8.5/10 |
- Earn Cash Back Rewards* – 3% on Eligible Gas, Groceries, and Utilities, and 1% on All Other Eligible Purchases
- Up to $1,000 credit limit subject to credit approval
- Prequalify** without affecting your credit score
- No security deposit
- Free Access to your Credit Score†
*See Program Terms for important information about the cash back rewards program.
** Prequalify means that you authorize us to make a soft inquiry into your credit history (that will not affect your credit) to create an offer. If you accept an offer a hard inquiry will be made. Final approval is not guaranteed if you do not meet all applicable criteria (including adequate proof of ability to repay). Income verification through access to your bank account information may be required.
† Your credit score will be available in your online account starting 60 days after your account is opened. (Registration required.) The free VantageScore 4.0 credit score provided by TransUnion® is for educational purposes only. This score may not be used by The Bank of Missouri (the issuer of this card) or other creditors to make credit decisions.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 7 minutes | 36% Fixed | Yes | 8.0/10 |
- Earn Cash Back Rewards* – 3% on Eligible Gas, Groceries, and Utilities, and 1% on All Other Eligible Purchases
- Use Anywhere Mastercard is Accepted
- No Security Deposit
- $0 fraud liability**
- Free access to your Credit Score†
*See Program Terms for important information about the cash back rewards program.
**Fraud liability subject to Mastercard rules.
† Your credit score will be available in your online account starting 60 days after your account is opened. (Registration required.) The free VantageScore 4.0 credit score provided by TransUnion® is for educational purposes only. This score may not be used by The Bank of Missouri (the issuer of this card) or other creditors to make credit decisions.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 7 minutes | 36% Fixed | Yes | 8.0/10 |
- See if you're pre-approved with no impact to your credit score.
- Qualify for rewards like a credit limit increase (subject to credit approval) or APR decrease in as little as six months.
- Earn unlimited 1% cash back on purchases.
- Building your credit? We report to the major credit bureaus and good payment habits can pay off.
- Easily manage your account and make payments using BrightWay App.
- BrightWay cards are issued by WebBank.
- See the OneMain BrightWay® Card rates and fees.*
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 5 minutes | 35.99%* | Yes | 9.5/10 |
- Guaranteed $700 credit limit if approved.
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- Don't Have Perfect Credit? No Problem!
- Join over a million consumers who are working on building their access to credit.
- Zero Fraud Liability - Peace of mind that comes with having a Mastercard.
- Get the credit you deserve, even with less-than-perfect history.
- No security deposit, and a path to better credit.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 8 minutes | See terms | Yes | 9.0/10 |
+See More Credit Cards for Bad Credit
After six months of diligent spending and paying your bills on time, you’re likely to notice an improvement in your credit score. Plus, you may qualify for better card options with fewer fees.
Keep in mind that these options depend on your current credit status and how much existing debt you’ve managed to reduce.
Best Department Store Cards For Bad Credit
Department stores are a shopping paradise for name-brand clothing, luxury makeup, and premium housewares. However, they can also be a hotspot for high prices. Using store-branded cards with high APRs can quickly blow your budget and possibly affect your credit.
However, if you’re a repeat customer or if you always have a long list of gifts to buy for the holidays, you may reap some benefits from a department store card.
Perks run the gamut from exclusive sale access and products to special financing options on large purchases from the brand. Just be mindful to pay off your card as soon as possible to prevent interest fees from accumulating.
Many of these brands also offer branded credit cards that you can use anywhere, but they often come with more stringent qualification criteria.
1. Kohl’s Credit Card
The Kohl’s Credit Card lets you stack your card discounts with Kohl’s Cash® and other rewards, plus online coupons, to really make the most of your savings.
- Get at least 12 special Kohl’s offers annually to use in-store or online if you’re a cardholder
- Receive a one-time 40% off coupon as a bonus
- Pay no annual fee
Watch your spending and ensure you make payments on time, as you could face late fees and penalty APRs. Given the high APR of the Kohl’s Credit Card, it’s wise to steer clear of maintaining a high balance overall.
2. Macy’s Credit Card
Anyone who uses the Macy’s Credit Card earns 1 Star Rewards point per $1 spent on eligible store purchases that include a wide range of products, from clothing and makeup to furniture and wedding gifts.
- Earn a $10 coupon for every 1,000 Star Rewards points
- Receive a 20% off Macy’s coupon to redeem within the first two days of opening an account
- Pay no annual fee
Even if you rack up Rewards points, they’re not enough to offset the steep fees from carrying a large balance on your Macy’s Credit Card. To dodge those high interest charges, aim to pay off your card each month and stay on top of your payments.
3. Dillard’s Credit Card
The Dillard’s Credit Card rewards cardholders 2 points for every dollar spent at the store, whether it’s for your wardrobe or on goods for your household.
- Redeem 1,500 points for a 10% off Rewards Shopping Pass or a $10 Rewards Certificate
- Receive access to exclusive shopping events and offers
- Pay no annual fee
Unlike most store cards, the Dillard’s Credit Card offers a range of possible APRs rather than a single rate. However, even the lowest rate in this range can lead to significant fees if you carry a balance from month to month.
4. TJX Rewards Credit Card
With the TJX Rewards Credit Card, you’ll earn rewards that equate to 5% savings on purchases made at any T.J. Maxx, Marshalls, HomeGoods, or Sierra Trading Post location.
- Get a $10 Rewards certificate for every 1,000 points you earn
- Receive a 10% coupon on your first purchase after opening an account
- Pay no annual fee
The perks for frequent T.J. Maxx shoppers may not outweigh the card’s high APR. To avoid extra costs that could lead to more debt than savings, make sure to pay off your card balance in full each month.
5. Belk Credit Card
With the Belk Rewards+ Credit Card, you can enjoy special savings and exclusive perks if you’re a frequent shopper at this department store.
- Earn up to 5% back in rewards on eligible store purchases
- Get $10 Belk Reward Dollars to use the day you open a card account
- Pay no annual fee
The potential 5% rewards rate of the Belk Rewards Card is, unfortunately, overshadowed by a high APR. And, the card’s high APR coupled by its closed-loop limitations mean the card will become more of a steal than a deal if you tend to carry a high balance.
6. JCPenney Credit Card
The JCPenney Credit Card enables users to earn 1.5 reward points per dollar spent on clothing, accessories, housewares, and appliances.
- Get a $10 JCPenney Rewards certificate for every 200 points you redeem
- Receive up to 35% off your first JCPenney card purchase
- Pay no annual fee
If you regularly fill up your cart at JCPenney, you can reap savings despite the card’s restriction to branded purchases only. Regardless of shopping preference, though, the card’s high APR and late fee should make you think twice before you apply.
7. Nordstrom Credit Card
Owning the Nordstrom Credit Card means you’re in for some fantastic shopping perks. The more you spend at this fashion-focused store, the faster you’ll rack up rewards.
- Earn 2 to 3 rewards points per dollar spent in-store and online
- Receive a bonus Nordstrom Note on your first card purchase the day you’re approved
- Pay no annual fee
Nordstrom Credit Card’s APR is fair compared to other store cards, but watch out for the hefty penalty APR if you pay late. It’s wise to keep your balance low, especially since the store features many high-ticket items.
What Is a Department Store Card?
Most department store cards are similar to traditional credit cards. But instead of using them anywhere you want, you typically can only use them at the store that offers them. An example is the Old Navy credit card, which you can use to pay for purchases at Gap stores, which owns Old Navy. These include Gap, Banana Republic, Old Navy, and Athleta.
You may also earn rebates or cash back on purchases you make on the card. Other branded cards don’t include specific benefits, but may alert cardholders to sales in advance.
Some companies push their branded cards, particularly around the holidays, as an alternative to layaway. Although this can be tempting, it’s better to make the decision to get your store credit card when you’re not feeling the pressure to overspend for the holidays.
A department store card can be one way to help rebuild credit, but it does present limitations. You can generally only use the card to make purchases with the company that issued it, so it’s not as useful as some other credit cards for bad credit.
These branded credit cards function in the same way that standard credit cards do. You typically have a credit limit and the option to pay in full at a later date or pay over time. Retail credit cards are possibly the closest ancestors of modern credit cards, in terms of how they work: offering customers the ability to pay for purchases over time with a set interest rate and payment schedule.
Department store cards come in a few varieties and offer different benefits. Big Box credit cards, such as the Target Circle™ Card, offer a percentage of your purchase balance as cash back. The Target Circle™ Card offers this rebate right at the register.
As with all credit cards, a department store credit card includes an interest rate. That’s why you should choose the card you get carefully; high interest rates can make the amount you pay over time much higher than the purchase price.
How Do I Apply for a Store Card?
The process of applying for department store cards for bad credit isn’t all that different from that of applying for traditional cards. Usually, you’ll have to fill out an application, either online or in-store.
The application will require that you submit details like your name, address, Social Security number, and other details that allow the company to check your credit report with each credit bureau.
Most department store cards use banks, such as Comenity Bank or Synchrony Bank, to provide your credit limit. These banks usually have limited functions outside of providing credit lines for different card and loan products.
Store credit cards often provide instant approval, meaning if you apply in-store, you’ll find out at the register. Online applications usually yield quick decisions as well. Occasionally, though, you might have to wait a week or so for your answer.
Some stores also offer an instant card number option, which allows you to charge your first purchase as soon as you’re approved. In other cases, you will have to wait to receive your physical card.
What Credit Score Is Needed For Department Store Cards?
The credit score you need for a given department store credit card varies. For the majority of department store credit cards, you’ll need at least fair credit to get approved.
However, the specific credit score required depends on the store you’re applying for a card with.
Some department store cards have a reputation for being easier to get than others. The Target Circle™ Card seems to have higher approval rates than cards from high-end department stores, but because the specific minimum credit score requirements aren’t public knowledge, it’s hard to say for sure.
Here’s a look at the credit score ranges for both FICO and VantageScore:
| FICO Score Categories | Score Range | VantageScore Categories | Score Range |
|---|---|---|---|
| Exceptional | 800-850 | Excellent | 781-850 |
| Very Good | 740-799 | Good | 661-780 |
| Good | 670-739 | Fair | 601-660 |
| Fair | 580-669 | Poor | 500-600 |
| Poor | Below 580 | Very Poor | 300-499 |
It’s also true that beyond credit history itself, different factors in your credit report can impact whether your application is approved. Specific issues like late payments, excessive debt, too much credit utilization, and other negative marks on your credit report can be the determining factor.
The exact score needed for approval can vary, but it’s wise to focus on improving your score by using your card wisely.
Do Department Store Cards Impact Your Credit?
Department store credit cards do affect your credit because most of these cards report to the major credit bureaus. This can be a good thing or a bad thing, depending on how you use your card and how reliable you are about paying on time, which is why a department store card can be a step toward rebuilding credit.
Payment history is the biggest factor in both your FICO and VantageScore:
| FICO Score Factors | VantageScore 4.0 Factors |
|---|---|
| Payment History: 35% | Payment History: 41% |
| Amounts Owed: 30% | Utilization: 20% |
| Credit History: 15% | Age/Credit Mix: 20% |
| Credit Mix: 10% | New Credit: 11% |
| New Credit: 10% | Balance: 6% |
| Only uses five factors | Available Credit: 2% |
But the impact on your credit can go both ways. Negative behaviors with department store cards, such as paying late or maxing out your available credit limit, can add more negative marks to your credit report and lower your score.
To avoid hurting your credit, make sure to pay your bills on time and keep your credit utilization under 30%. Good behaviors will help you build credit over time.
Spend with the Right Card to Build Your Credit Score
While many store cards promise enticing rewards, they’re often restricted to closed-loop cards with substantial shopping limitations and high APRs. If your credit isn’t perfect, you might think you’re stuck. But here’s the good news: you don’t have to confine yourself to just one store or brand, regardless of your credit score.
Open-loop credit cards offer a great chance for those with bad credit to enjoy special savings while also building their credit score when used wisely. If you consistently pay on time and gradually reduce your debt, you’ll likely see your credit score improve, opening up even more credit card options for you.
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