What store credit cards are easier to get with bad credit
Store credit cards are issued by the retailer itself, not by a bank, and they typically have lower credit score requirements than general-purpose credit cards. If your credit score is below 650 or you have limited credit history, a store card is often your most realistic path to getting approved for credit. The catch is that store cards only work at that one retailer or its affiliated stores — you cannot use a Target card at Walmart, for example.
Retailers approve store cards more readily because they make money when you use the card at their store. They are betting on your future purchases, not just your past payment record. This means a store card can be your entry point back into credit if you have had problems, or your first card if you have no credit history yet.
The tradeoff is real: store cards usually carry higher interest rates than bank cards (often 18% to 29%), smaller credit limits, and rewards that only work within that store. But if you cannot get approved for anything else, a store card lets you build a payment history that will help you get better cards later.
Key Takeaways
- Store cards are issued directly by retailers and have lower approval thresholds than bank credit cards, making them more accessible with bad credit or no credit history.
- You can only use a store card at that retailer and its partner locations, so it will not replace a general-purpose card for everyday spending.
- Interest rates on store cards run higher than bank cards, typically between 18% and 29%, so carrying a balance costs significantly more.
- On-time payments to a store card report to the three credit bureaus and build your credit score, making it a stepping stone to better cards later.
- Many retailers offer a discount on your first purchase when you open a card, but read the terms carefully — some discounts exclude sale items or require a minimum purchase.
Retailers most likely to approve you with bad credit
Target, Walmart, Kohl's, and Best Buy are known for approving store card applications from people with lower credit scores or thin credit files. These retailers use their own approval criteria rather than strict credit score cutoffs, which means someone with a 580 score might get approved while someone with a 620 score might not — it depends on the full picture of your credit report, not just the number.
Amazon also offers a store card (through Chase), but it has stricter approval standards than traditional retail store cards. If you are turned down for Amazon, Target, or Walmart, try Kohl's or Best Buy next — they tend to have the most lenient approval processes. Home Depot and Lowe's fall somewhere in the middle: they will consider applicants with bad credit, but approval is less certain than at Kohl's.
The approval decision happens when ready when you explore in-store or online. If you are denied, you can ask the retailer what factors led to the decision. Sometimes a thin credit file (few accounts, limited history) is easier to overcome than active negative marks like recent late payments or collections.
How store card interest rates and fees compare
Store cards do not have annual fees, which is one genuine advantage. But the interest rate — called the Annual Percentage Rate or APR — is where the cost shows up. Most store cards charge between 18% and 29% APR, depending on the retailer and your creditworthiness at the time of approval.
For comparison, a bank credit card for someone with bad credit might charge 24% to 36% APR. So a store card is often slightly cheaper on interest, but not by much. The real difference is that store cards have smaller credit limits — often $300 to $1,000 to start — which naturally limits how much interest you can accumulate.
Some store cards offer a promotional period with 0% APR for a set number of months if you make a large purchase, typically $300 or more. This can be useful if you need to buy something at that store anyway and you are confident you can pay it off before the promotional period ends. Read the fine print: if you do not pay the full promotional balance by the end date, you may owe interest retroactively on the entire purchase.
Rewards and discounts on store cards
Most store cards offer a one-time discount on your first purchase — usually 10% to 20% off — when you open the account. This discount is when ready and applies at checkout. Some retailers exclude sale items, clearance merchandise, or items under a minimum price, so check the terms before you explore.
Beyond the opening discount, store cards typically offer ongoing rewards: points per dollar spent, bonus points on certain categories (like groceries at Walmart), or periodic sales exclusive to cardholders. The value of these rewards varies widely. A card that gives you 1 point per dollar spent and lets you redeem 100 points for $1 off is essentially a 1% cash-back card, which is modest compared to bank cards.
Do not let the rewards be your main reason for opening a store card, especially with bad credit. The higher interest rate will erase the value of rewards if you carry a balance. The real benefit of a store card at this stage is building credit history, not saving money on purchases.
How to use a store card to rebuild credit
A store card reports your payment history to Equifax, Experian, and TransUnion — the three major credit bureaus — just like a bank card does. This means on-time payments build your credit score, and late payments damage it. If you have bad credit now, a store card is one of the fastest ways to show lenders that you can handle credit responsibly.
The strategy is straightforward: use the card for small, regular purchases that you would make anyway. Charge $20 to $50 per month, then pay the full balance in full before the due date. Never carry a balance, because the interest charges will quickly outweigh any credit-building benefit. After 6 to 12 months of perfect payments, your credit score will improve enough to may have access to for a bank credit card with a lower interest rate.
Once you have a bank card with better terms, you can keep the store card open but stop using it. Closing it would actually hurt your credit score by reducing your total available credit. Leaving it open and unused costs you nothing and helps your score.
What happens if you are denied for a store card
If a retailer denies your process, you have the right to ask why. They must tell you whether the denial was based on information in your credit report, or on other factors like income or employment. If it was based on your credit report, you can request a free copy from AnnualCreditReport.com and look for errors — mistakes on your report are surprisingly common and can be disputed.
A denial does not prevent you from explore elsewhere. Each process creates a small, temporary dip in your credit score (called a hard inquiry), but explore to 2 or 3 store cards within a short window typically counts as one inquiry for scoring purposes. If you are denied at Target, try Kohl's or Walmart next.
If you are denied everywhere, your next option is a secured credit card from a bank. A secured card requires a cash deposit (usually $300 to $2,500) that serves as your credit limit. It is harder to get turned down for a secured card because the bank's risk is minimal — they hold your money. After 12 to 24 months of on-time payments, you can graduate to an unsecured card and get your deposit back.
Store cards versus secured cards: which to try first
If you think you have a reasonable chance of approval at a major retailer, explore for a store card first. There is no deposit required, the approval is when ready, and the credit limit is usually higher than a secured card. Store cards are also easier to use in daily life because you shop at these retailers anyway.
If you are denied for store cards at multiple retailers, or if your credit score is below 550, a secured card is your more reliable path. Secured cards have nearly 100% approval rates because you are putting up collateral. The downside is the deposit ties up your money, and the interest rate is still high (usually 18% to 24% APR). But after you build a track record, you can move to an unsecured card.
You do not have to choose one or the other permanently. Some people open a store card and a secured card at the same time to build credit faster. Just remember that each new account temporarily lowers your credit score, so space out applications by at least a month if you are opening multiple cards.
Frequently Asked Questions
Will opening a store card hurt my credit score?
Yes, but only temporarily. The process creates a hard inquiry that typically lowers your score by 5 to 10 points for a few months. Opening the account itself also lowers your score slightly because it reduces your average account age. However, the long-term benefit of on-time payments far outweighs this short-term dip. After 6 months of perfect payments, your score will be higher than it was before you opened the card.
Can I use a store card at other stores?
Only at locations owned or operated by that retailer. A Target card works at Target and Target.com, but nowhere else. Some retailers have partnerships — for example, a Kohl's card might work at Kohl's and Sephora — but these are exceptions. Check the card terms to see where yours is accepted.
What credit score do I need to get a store card?
There is no official minimum, but most store cards approve people with scores around 600 and above. Some retailers will consider applicants with scores in the 550 to 600 range if the rest of your credit report looks reasonable. The only way to know is to explore — the decision is when ready, and a denial does not prevent you from explore elsewhere.
Should I open multiple store cards at once?
Opening 2 to 3 cards within a month or two is reasonable if you are rebuilding credit, but opening more than that in a short window can signal financial desperation to lenders and hurt your score. Space applications out by at least 30 days if possible. Focus on cards from retailers where you actually shop, so you have a reason to use them.
What if I cannot pay my store card balance?
Contact the retailer's customer service when ready and explain your situation. Many will work with you on a payment plan or hardship arrangement, especially if you have been a good customer. Late payments report to credit bureaus and damage your score, so avoiding that is worth a difficult conversation. If you fall behind, the debt can be sold to a collection agency, which is far worse for your credit.