Credit Cards to Use at Your Favorite Store in 2024: Credit Cards for Home Depot, Best Buy, Sephora, and More (2024)

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The information for the following product(s) has been collected independently by Business Insider: U.S. Bank Shopper Cash Rewards™ Visa Signature® Card, My Best Buy® Visa® Card, U.S. Bank Cash+® Visa Signature® Card, Citi Custom Cash℠ Card, Citi®Double Cash Card. The details for these products have not been reviewed or provided by the issuer.

  • Store credit cards often offer discounts, rewards, and financing options for frequent shoppers.
  • However, they also have numerous drawbacks including sky-high interest rates and limited rewards.
  • Most shoppers will benefit more from a cash-back or rewards credit card with consumer protections.

Introduction to Store Credit Cards

Store credit cards can be incredibly enticing for shoppers looking to save at their favorite retailers. These cards often provide discounts, rewards, and special financing options from the stores that offer them.

However, store cards have numerous drawbacks that can overshadow their benefits, including sky-high interest and limited rewards.

Most consumers are better off with a cash-back or rewards credit card that offers flexible rewards and broader practical benefits.

Closed-Loop Credit Cards vs. Open-Loop Credit Cards

There are two types of store cards: closed-loop cards that can be used only within a specific store (or website), and open-loop cards that can be utilized anywhere most credit cards are accepted.

Why to Avoid Store Credit Cards

Store credit cards often carry some of the highest interest rates in the market. They also offer limited rewards, minimal purchase protection, if any, and few significant savings opportunities beyond the initial welcome discount. Some of these cards also can't be used outside a specific retail store, while others lack benefits like purchase and travel protections that can provide savings and peace of mind.

Here's a look at some of the most popular store credit cards, and some shopping alternatives you might want to consider:

Amazon Prime Visa

The Prime Visa offers a welcome offer of $150 Amazon Gift Card instantly upon approval exclusively for Prime members. Amazon purchases earn 5% cash back, making this card a popular option for those who frequently shop at Amazon.

  • Earning rates: 5% cash back on Amazon, Whole Foods and Chase Travel℠ purchases; 2% cash back at gas stations, restaurants and on local transit; unlimited 1% cash back on all other purchases
  • Interest rate: 19.99% - 28.74% Variable APR
  • Foreign transaction fees: None
  • Annual fee: $0

Get This, Not That: Consider theBlue Cash Everyday® Card from American Express

The Blue Cash Everyday® Card from American Express is one of the best cards for Amazon purchases, earning 3% cash back at U.S. supermarkets, at U.S. gas stations, and on U.S. online retail purchases (on up to $6,000 per category per year, then 1%) and 1% cash back on other purchases (cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout).

The Blue Cash Everyday Amex Card also offers a more flexible welcome bonus than either Amazon card that can be redeemed anywhere: $200 statement credit after you spend $2,000 in purchases on your new card in the first six months of card membership.

Apple Card

The Apple Cardearns 3% cash back and interest-free financing on Apple purchases, making it a solid choice if you're in the market for new electronics.

Rewards are deposited as soon as transactions post, allowing you to redeem them almost instantly as a statement credit, deposited into an Apple Cash Card or high-yield Apple savings account. The Apple Card does not currently offer a welcome bonus.

  • Earning rates: 3% cash back on purchases with Apple and select merchants, 2% cash back on Apple Pay and 1% on all other spending
  • Interest rate: 15.99% - 26.99% Variable APR based on creditworthiness
  • Foreign transaction fees: None
  • Annual fee: $0

Get This, Not That: Consider the U.S. Bank Shopper Cash Rewards™ Visa Signature® Card

The U.S. Bank Shopper Cash Rewards™ Visa Signature® Card is a great alternative to the Apple Card because it offers 6% cash back on the first $1,500 spent each quarter with two retailers of your choice. Apple is one of those eligible retailers, allowing you to earn double the rewards offered by the Apple card.

Best Buy Credit Card

New My Best Buy® Visa® Card cardholders earn 15% cash back on their first Best Buy purchase, and 5% after, making this card a good one to consider when investing in a high-dollar purchase. Cardholders can also access deferred interest plans to finance purchases.

  • Earning rates: 5% cash back at Best Buy
  • Interest rate: 14.99%–30.49% variable APR
  • Foreign transaction fees: N/A (the My Best Buy® Visa® Card only works forBest Buy purchases)
  • Annual fee: $0–$59, based on creditworthiness

Get This, Not That: Consider the U.S. Bank Cash+® Visa Signature® Card

The U.S. Bank Cash+® Visa Signature® Card is a better alternative to the Best Buy card because it offers a solid welcome bonus of $200 bonus after spending $1,000 in eligible purchases within the first 120 days of account opening; intro APR of 0% intro APR on purchases and balance transfers for the first 15 billing cycles (then 19.74% - 29.74% Variable APR); and 5% cash back on two categories of your choice (including electronic stores).

Cardholders also earn 2% cash back on gas, EV charging, restaurants, and grocery stores — the same categories offered by the open-loop My Best Buy® Visa® Card.

Costco Credit Card

The Costco Anywhere Visa® Card by Citi is one of the better store cards. While it lacks a welcome bonus, it earns generous cash-back rewards on purchases made at Costco and on common spending categories.

The card also includes practical benefits like worldwide car rental insurance, travel and emergency assistance, travel accident insurance, roadside assistance and purchase protection.

  • Earning rates: 4% on eligible gas and EV charging; 3% on restaurants and eligible travel (including Costco Travel); 2% on all other purchases from Costco and Costco.com; unlimited 1% on all other purchases
  • Interest rate: 20.49% Variable APR
  • Foreign transaction fees: None
  • Annual fee: $0 (but a Costco membership is required)

Get This, Not That: Considerthe Bank of America® Customized Cash Rewards Credit Card

The Bank of America® Customized Cash Rewards Credit Card earns 2% rewards at wholesale clubs like Costco and on gas, plus 3% on a category of your choice (including EV charging, dining, travel and more), and 1% on everything else.

While there are quarterly limits on cash-back earnings, the card offers a welcome bonus: $200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days of account opening.

Disney® Visa® Card

The Disney® Visa® Card's main benefit is a 10% discount on dining and ShopDisney.com purchases, plus a 0% intro APR on Disney vacation packages.

The card's $300 statement credit after spending $1,000 on purchases in three months can reduce the cost of a Disney vacation, but there are superior alternatives such as the Chase Sapphire Preferred® Card (more below). The card's $49 annual fee may be worth it since cardholders receive up to $14.99 in monthly qualifying Disney subscription services for three months.

  • Earning rates: 5% Disney Rewards Dollars on Disney+, Hulu or ESPN+ spending; 2% on select card purchases; 1% on all other spending
  • Interest rate: 19.24% to 28.24% APR
  • Foreign transaction fees: 3%
  • Annual fee: $49

Get This, Not That: Consider the Chase Sapphire Preferred® Card

If you're looking for a card that earns bonus points on streaming and travel while discounting the cost of a future Disney vacation, the Chase Sapphire Preferred® Card is a great choice.

Business Insider named it the best travel rewards credit card overall for consumers, for good reason: This card earns 3x on streaming and up to 5x on travel spending, plus valuable travel protections to give you peace of mind, including travel insurance and lost luggage benefit.

You can redeem the card's welcome bonus toward travel cash purchases at a rate of 1.25 cents apiece, or maximize your rewards by transferring points to one of 14 airline and hotel Chase Ultimate Rewards points transfer partners.

Home Depot Credit Card

The Home Depot Consumer Credit Card in-store welcome bonus is almost laughable (in the past, they've offered an inflatable Spider-Man as an incentive) but most customers are enticed by their occasional deferred interest offers.

  • Earning rates: None
  • Interest rate: 17.99%, 21.99%, 25.99%, or 26.99% Variable APR
  • Foreign transaction fees: N/A (card can't be used outside of Home Depot)
  • Annual fee: $0

Get This, Not That: Consider the Citi Custom Cash℠ Card

The Citi Custom Cash℠ Cardearns 5% cash back on up to $500 of your top spending category every billing cycle (including home improvement stores).

It has a $0 annual fee and offers an intro APR of 0% intro APR on balance transfers and purchases for 15 months (then 19.24% - 29.24% Variable), making it an excellent choice for financing large home improvement projects while also earning rewards.

Nordstrom credit card

The Nordstrom retail card isn't very rewarding, but it does offer early access to sales events, Nordy Club Influencer status, free alterations and a $40 bonus note upon approval.

  • Earning rates: 2x on Nordstrom purchases (3x for Nordy Club Ambassador and Icon status members). The Nordstrom Visa earns 1x everywhere else
  • Interest rate: 33.65% variable
  • Foreign transaction fees: N/A (The Nordstrom retail card can't be used outside of Nordstrom, but the Nordstrom Visa can and charges no foreign transaction fees)
  • Annual fee: $0

Get This, Not That: Consider the SoFi Credit Card

The SoFi Credit Card earns unlimited 2% cash back on all purchases, so you can continue to earn 2x on your Nordstrom purchases and beyond while enjoying no foreign transaction fees on spending originating abroad.

Old Navy Credit Card

The Navyist Rewards Mastercard® offers 30% off your first purchase at Old Navy, then 5x in ongoing rewards. Points are worth 1 cent apiece, making the 5x rewards equivalent to 5% cashback. The card's other perks are underwhelming, offering early access to select sales and free expedited shipping on orders of $50 or more.

  • Earning rates: 5x at Gap, Banana Republic, Old Navy, and Athleta; 1x on all other eligible purchases.
  • Interest rate: 29.99%
  • Foreign transaction fees: 3%
  • Annual fee: Navyist Rewards Mastercard®

Get This, Not That: Consider the Wells Fargo Active Cash® Card

The Wells Fargo Active Cash® Card is a better option in the long term since it offers a welcome bonus: $200 cash rewards bonus after spending $500 in purchases in the first three months from account opening. You'll also get unlimited 2% cash rewards on all spending.

You'll earn 2% at Old Navy and on virtually all other spending while enjoying an intro APR: 0% intro APR on purchases and qualifying balance transfers for 12 months from account opening (then 19.74%, 24.74%, or 29.74% variable).

Sephora Credit Card

Sephora is a popular store for adults and kids alike, thanks to a wide selection of beauty and skincare brands. Sephora Credit Card members can receive 25% off their first purchase, along with 4% cash back and 2x Beauty Insider points.

This closed-loop card is only valid at Sephora stores. If you want a more widely accepted card, the Sephora Visa Signature® Credit Card is accepted worldwide and earns 1% cash back outside of Sephora.

  • Earning rates: 4% cash back on Sephora purchases, plus 2x Beauty Insider points
  • Interest rate: 31.99% variable
  • Foreign transaction fees: 3%
  • Annual fee: $0

Get This, Not That: Consider the PayPal Cashback Mastercard®

The PayPal Cashback Mastercard® earns 3% cash back when you check out with PayPal and 1.5% cash back on everything else. Cardholders also get a free ShopRunner membership, which includes complimentary two-day shipping at popular retailers, including Sephora.

Since Sephora accepts PayPal and is part of the ShopRunner network, the PayPal Cashback Mastercard® is a superior alternative to the Sephora credit card.

Target Credit Card

Frequent Target shoppers might gravitate towards the Target Circle™️ Credit Card for its 5% cash back rewards on all Target purchases. Cardholders get free two-day shipping, extra return time and access to exclusive savings. The card also earns decent rewards outside of Target and waives foreign transaction fees on purchases originating abroad.

  • Earning rates: 5% cash back at Target and Target.com; 2% on dining and gas purchases; 1% everywhere else
  • Interest rate: 29.95%
  • Foreign transaction fees: None
  • Annual fee: $0

Get This, Not That: Consider the Target Circle™️ Debit Card

The Target debit card offers the same 5% cash back at Target stores, without incurring a credit inquiry.

Ulta Credit Card

Ulta has a closed-loop Ulta Beauty Rewards™ Credit Card and the open-loop Ulta Beauty Rewards™ Mastercard® Credit Card. Since both have no annual fees, the Ulta Mastercard is a better choice since it can be used outside of Ulta stores.

With limited rewards potential and just a 20% first-purchase discount and 500 bonus points, after you spend $500 in the first 90 days (worth $17.50), it's not particularly attractive even for the most ardent Ulta shopper.

  • Earning rates: 2X points at Ulta, 1 point per $3 spent outside of Ulta
  • Interest rate: 23.24%, 29.24% or 32.24%, based on creditworthiness
  • Foreign transaction fees: 3%
  • Annual fee: $0

Consider the Citi®Double Cash Card

The Citi®Double Cash Card is a better alternative than the Ulta Beauty Rewards Card. The 2% cash back rewards are issued as points (worth 1 cent each), which you can either cash out or transfer to three travel loyalty programs for even more value: Choice Privileges, JetBlue True Blue and Wyndham Rewards. Plus, the card earns a welcome bonus: $200 cash back, fulfilled as 20,000 ThankYou® Points, after spending $1,500 on purchases in the first six months of account opening.

Walgreens Credit Card

The new My Walgreens Mastercard offers up to 10% cash back at Walgreens stores. The card's substantial savings are limited to Walgreens purchases, making it impractical for further use.

  • Earning rates: 10% Walgreens Cash rewards on Walgreens branded products; 5% on all other brands and pharmacy purchases at Walgreens; 3% on grocery, health and wellness purchases outside of Walgreens (including spa and salon appointments, pet stores, medical bills, counseling services, sporting goods stores, gym membership and more); 1% everywhere Mastercard is accepted
  • Interest rate: 25.99%, 31.99% or 34.99% variable
  • Foreign transaction fees: 3%
  • Annual fee: $0

Get This, Not That: Consider the Chase Freedom Unlimited®

While the Chase Freedom Unlimited® earns just 3% cash back on drugstore purchases, it applies more broadly and isn't limited to specific brands or stores. You can also redeem rewards on anything you like, instead of spending your hard-earned cash back exclusively at Walgreens.

Furthermore, the card earns 3% cash back on dining, 5% on Chase Travel purchases. and 1.5% on everything else.

What to Know About Store Credit Cards

Store credit cards can be tempting when you're making a big purchase and the cashier offers you an attractive finance offer or discount. However, these store cards often have numerous drawbacks that can outweigh their initial benefits. Here are some common shortcomings to be aware of when considering store credit cards:

High Interest Rates

Store credit cards carry some of the highest credit card interest rates, which can lead to significant debt if you don't pay your balance off every month.

In addition, these cards usually carry foreign transaction fees on purchases originating abroad. While an extra 3% to 5% fee added to your purchases may not seem like much, it can add up substantially when you factor in hotel expenses and large purchases made through internationally-based retailers.

Lots of no-annual-fee rewards cards waive foreign transaction fees these days, so there's really no need to have a card that lacks this benefit.

Niche Benefits and Limited Rewards

The main appeal of store credit cards are the niche benefits, which are limited to that particular retailer.

Customers usually receive a discount of 15% to 25% when they open a new card and may periodically extend additional discounts. Other cards may provide early access to sales or targeted merchant discounts. In addition, most store credit cards earn elevated rewards at the co-branded retailer.

These benefits can add up substantially for frequent shoppers but aren't practical for those with diverse shopping habits. General rewards and cash-back cards often provide higher rewards on broader spending categories, allowing you to maximize rewards across all spending.

Lack of Purchase and Travel Protections

Most store credit cards lack valuable purchase and travel protections, which can cover high-cost items and travel bookings.

Purchase protection can be invaluable for large purchases, providing reimbursement in case of theft, damage or other covered reasons. Meanwhile, travel protections can reimburse you for non-refundable flight and hotel bookings in case of a (covered) unforeseen circumstance.

Purchase and travel protections can save you thousands of dollars in these instances. When you use a store credit card, you often lose out on such benefits.

Cardholder Insights

Store credit cards can be worth getting if the initial welcome offer — often a discount — adds up to substantial savings.

Keep in mind that many cash-back cards offer welcome bonuses that can be worth up to $300, so you might want to skip a store card application if the one you're looking for offers a less valuable reward. More importantly, most rewards credit cards are more versatile because they allow you to earn rewards on purchases outside of a specific brand.

Store Credit Card Frequently Asked Questions

Who is the Best Buy store card through?

There are two Best Buy store cards, one closed-loop and one open. Both Best Buy cards are issued by Citibank. You can apply for them online or in-store.

What credit score is needed for a Best Buy credit card?

The My Best Buy® Visa® Card doesn't publish a specific credit score requirement, but you generally should have no major delinquencies to qualify for most credit cards.

Is it hard to get a Ulta credit card?

It can be hard to get an Ulta credit card if you have delinquencies on yoru credit report. However, if you're just getting started with credit you may have an easier time getting approved for an Ulta credit card than a traditional rewards card.

Why You Should Trust Us: Why We Choose to Avoid Most Store Credit Cards

When evaluating credit cards, it's important to prioritize options that offer the best overall value and benefits. While store credit cards may seem appealing due to their immediate discounts and store-specific rewards, they often fall short compared to general-purpose credit cards.

With high interest rates, few long-term benefits, and low rewards outside of a specific brand, most people are better off avoiding store credit cards altogether.

Ariana Arghandewal

Ariana Arghandewal is a credit card rewards expert and freelance contributor at Business Insider. She has over 12 years of experience covering credit cards and travel rewards. Ariana founded an award-winning points blog, Pointchaser, and co-founded #TRLT, the second-largest travel chat on Twitter.ExperienceAriana has contributed as a writer and editor for renowned publications including Bankrate, CNBC, CNN Underscored, Forbes Advisor, and Lonely Planet. She has also worked as an editor and content strategist, building new content verticals for FlyerTalk, The Points Guy, and NerdWallet.She has appeared as a subject matter expert in the media, including the NBC Today Show and NPR’s “All Things Considered.” She has also spoken at industry events like Frequent Traveler University, CardCon, and the Chicago Seminars.Prior to embarking on a career as a journalist, she worked as a communications professional for marketing, healthcare, and non-profit organizations.Expertise

  • Credit card rewards and benefits
  • Maximizing travel rewards
  • Personal finance strategies

Ariana’s expertise includes all things points, miles and travel-related. She thrives in simplifying the complicated world of loyalty programs and is passionate about helping readers leverage credit cards to achieve their travel goals and improve their finances.She also enjoys diving into personal finance topics and sharing her strategies for achieving long-term financial success.EducationAriana has a B.A. in Communication from the University of Southern California.

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Credit Cards to Use at Your Favorite Store in 2024: Credit Cards for Home Depot, Best Buy, Sephora, and More (2024)

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