If you have bad credit, finding a credit card can be tough. Most options come with high interest rates, low limits, and no rewards.
Department store credit cards may be easier to qualify for. They often have smaller limits and higher APRs, but they also offer discounts and perks if you shop at the store often.
Used wisely by keeping balances low and paying in full each month, a store card can help you build positive credit history and move toward better credit.
In this guide, we’ll explain how store cards work, their pros and cons, and the best department store credit cards for bad credit in 2025.
12 Best Store Credit Cards for Bad Credit
Now that you know the potential benefits of department store credit cards, the next step is finding the one that fits your needs. Here are twelve options to consider.
1. Dillard’s Credit Card
The Dillard’s card is most accessible if you have fair credit, though some applicants with poor credit have been approved. Cardholders earn two points for every dollar spent, and once you collect 1,500 points, you can redeem them for either a 10% off shopping pass or a $10 reward certificate.
If you spend $2,000 or more in a year, you’ll qualify for Elite Status. That tier adds perks like free shipping, complimentary gift wrapping, and invitations to private events. Keep in mind that the regular APR is variable and usually above 30%, so paying in full each month is important. The card has no annual fee.
2. The Gap Credit Card
The Gap credit card is now issued by Barclays and can be used at Gap, Old Navy, Banana Republic, and Athleta. New cardholders get 20% off their first purchase along with free shipping, making it a strong choice if you already shop at these brands.
You’ll earn five points for every dollar spent at Gap Inc. stores and one point per dollar everywhere else Mastercard is accepted. Rewards are flexible within the brand family, and frequent shoppers can reach Icon status by earning enough points in a year. That tier unlocks perks like faster shipping, bonus redemption days, and exclusive offers.
The regular APR is variable and usually above 30%, which makes carrying a balance expensive. The card has no annual fee, so it can work well as long as you pay off purchases in full each month.
3. Costco Anywhere Visa® Card by Citi
If you’re a Costco member, this card can be a strong addition to your wallet. It doubles as your membership ID and doesn’t charge an annual fee, although you do need a paid Costco membership to qualify.
The card offers generous cash-back rewards: 4% on eligible gas and EV charging (up to $7,000 a year, then 1%), 3% on restaurants and travel, 2% on Costco and Costco.com purchases, and 1% on everything else.
The regular APR is variable and usually falls in the high teens to mid-20s, depending on your credit profile. There are no foreign transaction fees, and the card also includes added benefits like purchase protection and travel insurance.
Rewards are issued annually as a certificate, which you redeem at Costco. For members who pay in full each month, it’s a smart way to maximize everyday spending and get more value from a Costco membership.
4. Nordstrom Credit Card
The Nordstrom credit card is a good fit if you shop often at Nordstrom, Nordstrom Rack, or Nordstrom Local. The card has no annual fee and typically starts as a store-only card, though some applicants may qualify for the Visa version that can be used anywhere.
New cardholders usually receive a $60 bonus note after using the card the day they’re approved. You’ll earn at least 2 points per dollar spent, with the opportunity to earn more as you reach higher Nordy Club status levels. Rewards come as Nordstrom Notes, which you can redeem on future purchases.
The regular APR is variable and generally above 30%, so carrying a balance can be expensive. For shoppers who pay in full, the card can be a rewarding way to get more out of frequent Nordstrom visits.
5. Kohl’s Credit Card
The Kohl’s Card is built for frequent shoppers who want steady discounts and rewards. It has no annual fee, and new cardholders usually receive a one-time coupon for 35% to 40% off their first purchase.
You’ll earn 7.5% back in Kohl’s Rewards on every purchase, issued as Kohl’s Cash the following month. Some applicants may qualify for the Visa version, which works anywhere Visa is accepted and adds rewards like 3% back on gas, 2% at grocery stores, and 1% on other purchases.
Spending $600 or more in a year unlocks Most Valued Customer status with extra discounts and free shipping events. The regular APR is typically above 30%, so this card works best if you pay your balance in full each month.
6. Macy’s Credit Card
The Macy’s credit card is designed for shoppers who want extra savings and rewards at the store. New cardholders typically receive a one-time discount of up to 30% off their first purchase, with the savings capped at $100.
Macy’s has a tiered rewards program. Silver status earns 2 points per dollar, Gold status (for $500 in yearly spending) earns 3 points per dollar, and Platinum status (for $1,200 or more) earns 5 points per dollar. Every 1,000 points converts to $10 in Star Money, which can be used on most Macy’s purchases.
There’s no annual fee, but the regular APR is variable and generally above 30%. For qualified applicants, a Macy’s American Express version is also available. That card can be used anywhere American Express is accepted and adds rewards on gas, groceries, and dining.
7. JCPenney Credit Card
The JCPenney credit card is issued by Synchrony Bank and can be used at JCPenney stores and online at jcp.com. New cardholders typically receive a one-time discount on their first purchase, which can range from 5% to 35% depending on the promotion.
You’ll earn 1.5 CashPass points for every dollar spent on qualifying JCPenney purchases. Once you reach 200 points, you’ll receive a $10 reward that can be used on future purchases. If you qualify for the Mastercard version, you’ll also earn 1% back on purchases made outside JCPenney. Cardholders get additional perks like birthday rewards, exclusive savings events, and special offers throughout the year.
There’s no annual fee, but the regular APR is variable and generally above 30%. Because of the high interest, this card works best when you pay off your balance in full each month.
8. Bloomingdale’s Credit Card
Bloomingdale’s offers two versions of its card: a store-only option and an American Express version that can be used anywhere American Express is accepted. Neither card charges an annual fee. New cardholders usually receive a two-day discount offer, often 20% off purchases up to $250, valid on the day of approval and the following day.
The card is tied to the Loyallist rewards program. You’ll earn at least 3 points per dollar spent at Bloomingdale’s, with higher earning rates unlocked as your annual spending grows. For example, big spenders can earn up to 10 points per dollar at the top tier. Every 5,000 points converts into a $25 reward certificate that can be used on future Bloomingdale’s purchases.
While the rewards can add up quickly, the regular APR is variable and generally above 30%. That makes it important to pay balances in full each month so that the benefits aren’t canceled out by interest charges.
9. Walmart Credit Card
The Walmart credit card is issued by Synchrony Bank and designed to reward frequent Walmart shoppers. It can be used both in-store and online, giving cardholders an easy way to save while building credit.
Benefits often include rewards on Walmart purchases, with additional perks for shopping through Walmart.com and using store services like pickup or delivery. The exact structure of rewards can vary, but the program is centered on giving you added value when you make Walmart your go-to place for everyday shopping.
There’s no annual fee, but the regular APR is variable and usually above 30%. That makes it important to pay off purchases in full each month to avoid interest charges and keep the card working to your advantage.
10. Target Circle™ Credit Card
The Target Circle credit card is a straightforward way to save if you shop at Target often. Cardholders get 5% off almost every Target purchase, both in-store and online, along with free two-day shipping on eligible Target.com orders. The card also extends your return window by 30 days, giving you extra flexibility.
There’s no annual fee, and the credit version of the card can also earn rewards outside of Target, such as 2% back on dining and gas purchases and 1% back on other everyday spending. Rewards are typically issued as Target gift cards, keeping the value tied to the store.
Like most store cards, the regular APR is high—usually near or above 30%—so carrying a balance can erase any savings. Used responsibly and paid off each month, this card is a smart way to cut costs at one of the most popular retailers in the country.
11. TJX Rewards Credit Card
The TJX Rewards Credit Card is designed for shoppers who frequent T.J. Maxx, Marshalls, HomeGoods, Sierra, or Homesense. It comes in two versions: a store-only card and a Platinum Mastercard that can be used anywhere Mastercard is accepted. Approval depends on your credit profile.
New cardholders typically receive a 10% discount coupon after approval. Purchases at TJX stores earn 5 points per dollar, and the Platinum Mastercard earns 1 point per dollar on purchases outside TJX brands. Every 1,000 points is automatically converted into a $10 rewards certificate, redeemable in-store or online.
There’s no annual fee, but the regular APR is variable and generally above 30%. This makes the card most rewarding when you pay balances in full each month and avoid interest charges.
12. Fingerhut Credit Account
The Fingerhut Credit Account, issued by WebBank, is one of the most accessible store credit options for people with bad credit. Applications are quick, and approval odds are higher than most traditional cards. Fingerhut also reports payments to all three credit bureaus, which helps you build or rebuild your credit history over time.
The card has no annual fee, but it does not come with rewards or sign-up bonuses. Purchases are limited to the Fingerhut catalog and website, which offer a wide range of household items, electronics, and name-brand products. The regular APR is typically above 30%, so carrying a balance can be costly. It works best for credit-building if you make small purchases and pay them off in full each month.
What Is a Department Store Credit Card?
A department store credit card is a card you can use mainly at the store that issues it. Like a traditional credit card, it lets you make purchases and pay later, but it’s tied to a single retailer or a family of brands.
Many stores use these cards to reward loyal customers. Perks can include discounts, special coupons, exclusive sales, and early access to promotions. Some cards also double as part of the store’s rewards program, so you earn points every time you shop.
How Store Credit Cards Work
Store credit cards function much like other credit cards, but there are some differences worth noting. Most have lower credit limits and higher interest rates, so carrying a balance can get expensive quickly.
These cards usually fall into one of two types:
- Closed-loop cards: Can only be used at the issuing store or affiliated brands.
- Open-loop cards: Carry a major payment network logo like Visa or Mastercard and can be used anywhere, though approval standards are stricter.
Unlike traditional credit cards, store cards typically don’t allow balance transfers. Their main appeal is the in-store rewards and discounts, which are only valuable if you regularly shop at that retailer.
How Store Credit Cards Help Build Credit
Store credit cards can help build or rebuild your credit because issuers report payment activity to the three major credit bureaus: Equifax, Experian, and TransUnion. Paying on time and keeping balances low can gradually improve your credit score.
Since credit limits are usually modest, it’s easier to keep spending under control. Plus, you’ll often get added perks like free shipping, birthday discounts, or special shopping events.
To make the most of a store card while protecting your credit:
- Keep your credit utilization low: Aim to use less than 30% of your available limit.
- Pay in full each month: Avoid interest charges by clearing your balance.
- Choose no annual fee: Many store cards don’t charge one, which keeps costs down.
- Check for deferred interest offers: Some stores run limited-time financing promotions that can help if you pay off the balance before the promo ends.
See also: How to Get a Credit Card With No Credit
Pros & Cons of Department Store Credit Cards
Store credit cards can be helpful tools, but they also come with trade-offs. Here are the main points to consider:
Pros
- Easier approval: Store cards often have more lenient requirements, making them accessible with lower credit scores.
- Exclusive discounts: Cardholders usually get special coupons, extra savings events, or birthday offers.
- Rewards programs: Many cards let you earn points or store credit on every purchase.
- Credit building: On-time payments are reported to the three major credit bureaus, which can improve your credit score over time.
Cons
- High interest rates: Regular APRs are usually above 30%, so carrying a balance can be very costly.
- Low credit limits: You may only qualify for a small spending limit at first.
- Limited use: Closed-loop cards work only at the issuing store, which reduces flexibility.
- Expiring rewards: Certificates or coupons often expire quickly, so it’s easy to miss out if you don’t shop often.
See also: Best Secured Credit Cards of September 2025
How to Get a Department Store Credit Card
Applying for a store card is usually simple. Here’s how to approach it step by step:
- Compare cards: Look at rewards, discounts, and fees to find one that fits your shopping habits.
- Check your credit score: Even though approval standards are looser, it helps to know where you stand before applying. You can get a free credit report from each credit bureau once a year at AnnualCreditReport.com.
- Apply online or in-store: Most retailers let you apply on their website or at the customer service desk.
- Fill out the application: Provide your personal details, income, and Social Security number. Accuracy helps avoid delays.
- Review the terms: Make sure you understand the APR, fees, and rewards program before you hit submit.
- Get a decision: Some cards approve instantly and offer instant access, while others may take a few days. If approved, your card should arrive within about a week.
Tips for Using Store Credit Cards Wisely
Store cards can be helpful for building credit and saving money, but only if you manage them carefully:
- Pay in full: Avoid carrying a balance since interest rates are usually above 30%.
- Keep balances low: Aim to use less than 30% of your available limit.
- Use the perks: Take advantage of discounts and coupons, but avoid overspending just to earn rewards.
- Limit applications: Too many new cards at once can hurt your credit score.
Final Thoughts
Department store credit cards can be easier to get with bad credit and come with perks like discounts, coupons, and rewards. For frequent shoppers, they can add real value while also helping to build positive payment history.
The high APRs and low credit limits make them risky if you carry a balance, so they work best when you pay them off in full each month. If you’re careful and strategic, a store card can be a stepping stone toward stronger credit and better financial options in the future.
Frequently Asked Questions
Can store cards be used anywhere or just at the store?
Most store credit cards can only be used at the retailer that issues them or at affiliated brands. These are called closed-loop cards. Some store cards are open-loop, meaning they carry a Visa or Mastercard logo and can be used anywhere those networks are accepted. Closed-loop cards are usually easier to get with bad credit, while open-loop cards often require a stronger credit score.
How many store credit cards should you have?
One store card is usually enough if you’re working on rebuilding credit. Opening too many cards in a short period can lower your credit score and make it harder to manage payments. Focus on using a single card responsibly before applying for another.
Do store credit cards increase your credit limit over time?
Yes, many issuers review accounts after several months of on-time payments. If you manage your card responsibly, you may receive a higher credit limit. This can help improve your credit utilization ratio, which is a factor in your credit score.
Are store credit cards easier to get than regular credit cards?
In general, yes. Store cards often have lower approval standards than traditional credit cards, which makes them appealing for people with bad credit. However, this easier access comes with trade-offs like lower limits and higher interest rates.
