Best Bad Credit Store Cards for November 2026
Bad credit doesn’t mean you can’t earn perks. Explore store cards designed for credit-challenged shoppers, with exclusive discounts, flexible credit limits, and reporting to major credit bureaus.
Credit card rates, rewards, fees, and terms shown on this site are estimates only and do not constitute binding offers. Actual terms depend on the issuer’s underwriting review and factors such as your credit profile, income, debt-to-income ratio, and other eligibility criteria. Only highly qualified applicants typically qualify for the lowest advertised APRs and bes
When shopping for store credit cards for bad credit, it's important to consider several key factors to ensure you choose the right card for your financial situation and goals. By comparing these factors, you can find a store credit card that not only meets your immediate needs but also helps you on your path to rebuilding your credit.
Key factors to consider
1. Approval requirements
For individuals with bad credit, the approval criteria of a credit card are crucial. Store credit cards often have more lenient requirements compared to traditional credit cards, but it's still important to check the minimum credit score needed. Some cards are specifically designed for people with poor credit, making approval more likely.
2. Interest rates (APR)
Store credit cards often come with high-interest rates, sometimes reaching 25% or more. If you carry a balance from month to month, these high rates can quickly add up. Look for cards with the lowest possible APR, or consider cards that offer a 0% introductory APR period, allowing you to pay off balances without accruing interest.
3. Fees and penalties
Pay attention to any fees associated with the card, such as annual fees, late payment fees, or foreign transaction fees. While some store cards come with no annual fee, others may charge a fee that outweighs the benefits. Also, consider the penalty for missed payments, as it can further damage your credit score.
4. Credit reporting
One of the main reasons to get a store credit card with bad credit is to rebuild your credit score. Ensure that the card issuer reports your payments to the three major credit bureaus (Equifax,Experian, and TransUnion). Timely payments can help improve your credit score over time, making it easier to qualify for better credit products in the future.
5. Rewards and benefits
Store credit cards often offer rewards such as cash back, points, or discounts on store purchases. While these can be attractive, ensure the rewards align with your shopping habits. For example, if you frequently shop at a specific store, a card offering discounts or rewards at that store could be beneficial. However, don’t let the rewards lure you into overspending, which could negate any potential benefits.
6. Credit limit
Store credit cards typically come with lower credit limits, especially for those with bad credit. While this can help prevent excessive debt, it can also impact your credit utilization ratio, which is a key factor in your credit score. Aim for a card with a higher limit or use the card responsibly to keep your balance low.
What are the store credit cards benefits?
Exclusive discounts and offers:
Many store credit cards offer cardholders exclusive discounts, promotions, or early access to sales, which can result in significant savings if you frequently shop at the store.
Rewards and loyalty programs:
Store credit cards often provide rewards or points for purchases made at the store, which can be redeemed for future discounts, free merchandise, or other perks.
Easier approval:
Store credit cards generally have more lenient approval requirements compared to general credit cards, making them accessible to those with lower credit scores.
Building credit:
If managed responsibly, store credit cards can help build or improve your credit score as they typically report your payment history to the major credit bureaus.
What are the store credit cards drawbacks?
High interest rates:
Store credit cards often come with higher interest rates (APR) compared to other types of credit cards, which can make carrying a balance expensive.
Limited use:
Many store credit cards can only be used at the issuing retailer, limiting their utility compared to general credit cards that can be used anywhere.
Low credit limits:
Store credit cards often have lower credit limits, which can restrict your purchasing power and affect your credit utilization ratio, a factor in your credit score.
Temptation to overspend:
The rewards and discounts offered by store credit cards can encourage overspending, leading to higher debt if not managed carefully.
Alternatives to store credit cards
General rewards credit card:If you don’t regularly shop at a specific store, a general rewards credit card or a flat-rate cash back card could provide greater value, offering rewards on all purchases regardless of where you shop.
Secured credit card:If your goal is to build or repair credit, a secured credit card might be a better choice. It allows you to make essential purchases while avoiding the temptation to overspend on unnecessary items.
Frequent-customer rewards:Many retailers offer frequent-buyer rewards programs without requiring a co-branded credit card. If you’re concerned about managing a store credit card responsibly, consider signing up for these rewards programs and skipping the card altogether.
FAQs on department store cards for bad credit
What are department store credit cards?
Store credit cards are issued by a bank and co-branded with a retailer. They offer rewards, discounts, and other benefits to loyal shoppers who use them. Usually, they offer lower credit limits and charge higher interest rates than traditional credit cards.
What credit score do you need to get a store credit card?
Most store credit cards require fair credit (more than 640) for approval, which means department store credit cards are easier to get than most regular credit cards. However, if you have bad credit you may need to apply for a secured credit card.
Do department store credit cards hurt your credit?
Department store credit cards, like any credit card, can hurt or help your credit. It depends on how you use them. Applying for a new card typically means you will get hit with a hard inquiry, which will temporarily lower your credit score by a few points. However, as with any credit card, store cards report your payment history to the major credit bureaus. When you make at least the minimum payment on time each month, it will help your credit score. If you can't, it will hurt your score. Additionally, using the right amount of your credit limit is important. If you keep your usage low, preferably well under 30%, a store credit card can help your credit, while anything over may hurt it.
Can you use a department store credit card anywhere?
It depends on the type of store card. There are two main types of store credit cards. Closed-loop store cards only work at the merchants they're connected with. However, store credit cards that belong to a card network, such as Visa,Mastercard, American Express, or Discover, can be used anywhere that network is accepted.
What is an instant approval store credit card?
Instant approval credit cards are those issued by lenders that approve or deny you in the moment. Further, they grant you immediate access to the credit line, if approved. For example, say you are checking out at Kohls, and you decide to apply for the store's credit card. If it was an instant credit card and you got approved, you could use that credit right away to pay for your purchase. Otherwise, they will send your card in the mail within a few days, and then you can use it.
How are store credit cards different from regular credit cards?
Store credit cards are designed to be used at a particular store and come with unique benefits for that store. However, some will allow you to use them elsewhere while others -- known as closed-loop cards -- will only work within the store.
Can I get a department store card with bad credit?
It depends on what you call bad credit. According to the FICO® scoring system, bad credit is a score between 300 and 579. Typically, if your credit is that bad, you won't qualify for most department store cards.
How do you get bad credit?
Credit scores are based on various factors. These include your payment history on loans and credit cards and your credit utilization. Additionally, public records, inquiries to your credit report, and the number of new accounts you have will be considered.
Your score will drop when you:
- Make late payments
- Default on a loan or credit card
- Use more than 30% of a credit line
- File bankruptcy
- Apply for too much new credit in too short a period
- Have too few accounts open
- Have too short a credit history
If you make too many mistakes, your score will drop into the zone considered "bad." This makes it hard to get approved. If you want to increase your chances of getting approved for a department store card, work on improving your score to at least 640, which is in the "fair" range.
Why do department stores offer their own credit cards?
Department stores offer their own credit cards as a way to increase customer loyalty and revenue. Store cards enable customers to purchase more thanks to their credit line, which can also be an incentive to shop at a particular store. Additionally, they often offer rewards when you shop so you can earn cash back or other benefits.
Can you get a store credit card after bankruptcy?
It depends on the department store, how recent the bankruptcy was, and how much it affected your credit score. Check your credit score to see how it was impacted and research store cards to find out about the card's eligibility requirements. Some may explicitly state they don't allow bankruptcies within a certain amount of years or at all. However, others may be more flexible.
How can I fix bad credit to get approved for a store card?
You may be thinking you want to get a store card to fix your credit, but you may need to fix your credit before you get a store card. If so, consider applying for a secured credit card.
Secured credit cards require you to put down a deposit, which often becomes your credit line. This offers security for the lender in case you default. Besides the deposit, you can use a secured credit card like a regular credit card. As you use it and make regular and on-time payments, they will be reported to the credit bureaus, which can help you improve your credit score.
Look for secured credit cards with benefits like an automatic increase in credit line and low fees. For example, the Capital One Platinum card has no fee and will automatically increase your credit line after five months, without requiring you to make an additional deposit.
How long does it take to fix bad credit?
Fixing bad credit is a process. All you can do is ensure your credit reports are accurate and that you are making good financial decisions from here on out. As time goes on, items from the past will drop off your credit report, and only the positive will be left. Many people start to see improvements after six months or so of making timely payments. However, hard inquiries stay on your report for two years. Additionally, payment activity remains for seven years, and bankruptcies can stay for up to 10. But with persistence, even with poor credit, you can likely get to fair credit within a few years, which will enable you to get approved for a store card.
About the author
Jump to Section