What the Sears Credit Card is and who issues it
The Sears credit card is a store card issued by Citi on behalf of Sears Holdings, the parent company of Sears and Kmart stores. It works only at Sears and Kmart locations — both in-store and online — and carries no annual fee. The card reports to the three major credit bureaus, so responsible use builds your credit history.
Sears Holdings filed for bankruptcy in 2018 and emerged under new ownership, which means the card's terms and rewards structure have changed over time. If you held a Sears card before the restructuring, your account may have been closed or transferred. New cardholders today are issued cards through the current Citi partnership.
Key Takeaways
- The Sears card is a store-only card that works at Sears and Kmart but nowhere else, so it is useful only if you shop at those retailers regularly.
- The card offers rotating promotional financing periods — typically 12 to 24 months interest-free on purchases above a minimum amount — but these terms vary by offer and cardholder.
- Rewards come in the form of points earned on purchases, which you redeem as statement credits or discounts on future Sears and Kmart purchases.
- The card reports to credit bureaus, so on-time payments help your credit score, but missed payments or high balances can harm it just as they would with any other card.
- Approval odds are generally higher for store cards than for general-purpose cards, but the card still performs a credit check and reviews your credit history.
How rewards and promotional financing work
Sears card rewards are earned as points on may be able to access purchases. The exact earning rate — whether you earn 1 point per dollar, 2 points per dollar, or a different rate — depends on the current offer and your cardholder status. Points accumulate in your account and can be redeemed for statement credits (reducing your balance) or as discounts applied to future purchases at Sears or Kmart.
The card's main draw for regular Sears shoppers is promotional financing. Sears frequently offers 12-month, 18-month, or 24-month interest-free periods on purchases of $250 or more, though the minimum purchase amount and length of the promotional period change based on current promotions. During a promotional period, you pay no interest on the promotional balance as long as you make your minimum payment on time each month. If you miss a payment or fail to pay off the promotional balance before the period ends, interest accrues retroactively on the entire promotional amount at the card's standard purchase APR.
Interest rates on non-promotional purchases and balances vary. Sears does not publish a standard APR range on its website; you receive your specific rate after approval based on your credit profile. Store cards typically carry higher APRs than general-purpose cards, often in the 18% to 25% range, though your rate may differ.
Approval requirements and credit impact
Sears performs a hard credit inquiry when you explore, which temporarily lowers your credit score by a few points. The card is generally easier to get approved for than premium travel or cash-back cards, but approval is not may provide. Citi reviews your credit score, payment history, and debt-to-income ratio to decide whether to issue the card and at what credit limit.
Once you have the card, your credit activity on it affects your credit score in two ways. Positive payment history — paying on time every month — helps your score over time. High balances relative to your credit limit (high utilization) hurt your score, even if you pay on time. Carrying a balance on the card costs you money in interest unless you are within a promotional financing period.
When the Sears card makes sense
The Sears card is most useful if you shop at Sears or Kmart regularly and plan to make large purchases. If you can time a major purchase to coincide with a promotional financing offer — say, buying appliances or furniture during a 24-month interest-free promotion — the card can save you hundreds in interest compared to paying cash or using a general-purpose card.
The card is less useful if you shop at Sears infrequently or only buy small items. Store cards offer rewards only at that store, so you miss out on the broader rewards you might earn with a cash-back or travel card that works everywhere. Additionally, if you already carry high balances on other cards, adding another card can raise your overall utilization and hurt your credit score.
How to manage the card responsibly
If you open a Sears card, treat promotional financing as a tool, not a license to overspend. Set a calendar reminder for the month before your promotional period ends so you have time to pay off the balance. If you cannot pay it off in full, you will owe interest retroactively on the entire promotional amount, which can be expensive.
Pay your statement balance in full each month if possible. If you carry a balance outside a promotional period, you pay interest at the card's standard APR, which is typically high for a store card. Keep your balance well below your credit limit to avoid high utilization, which damages your credit score even if you pay on time.
Review your Sears account online or by phone regularly to track your balance, check promotional period end dates, and confirm your payments have posted. Sears sends promotional offers by mail and email; read them carefully to understand the terms before you make a purchase.
Alternatives to the Sears card
If you do not shop at Sears or Kmart often, a general-purpose rewards card — such as a flat-rate cash-back card or a rotating-category card — gives you rewards at any store. These cards typically carry annual fees (though many do not) but offer higher rewards rates and work everywhere, not just at one retailer.
If you are building credit or have limited credit history, a secured card (which requires a cash deposit) is another option. Secured cards report to credit bureaus just as store cards do, but they work anywhere and often have lower APRs than store cards once you graduate to an unsecured card.
If you need financing for a large purchase, a personal loan from a bank or credit union may offer a lower interest rate than a store card's standard APR, even without a promotional period. Compare the total cost — interest plus any fees — across options before you decide.
Frequently Asked Questions
Can I use the Sears card at other stores?
No. The Sears card works only at Sears and Kmart locations, including their websites. It cannot be used at other retailers, so it is not a general-purpose card. If you need a card that works everywhere, you would need a separate card from a bank or credit card network.
What happens if I do not pay off a promotional balance before the period ends?
Interest accrues retroactively on the entire promotional balance at the card's standard purchase APR. For example, if you had a $1,000 balance on a 24-month interest-free promotion and paid only $900 by the end of month 24, you would owe interest on the full $1,000 from the original purchase date, not just the remaining $100. This can result in a large interest charge.
Does the Sears card hurt my credit score?
The initial process triggers a hard inquiry, which lowers your score slightly. After that, on-time payments help your score, but high balances hurt it. If you keep your balance low and pay on time, the card should help your credit over time. Missing payments or carrying a high balance damages your score.
What is the difference between Sears card rewards and promotional financing?
Rewards are points you earn on purchases and redeem for discounts or statement credits. Promotional financing is an interest-free period on certain purchases. You can use both at the same time — earn rewards on a purchase while also benefiting from an interest-free promotion on that purchase.
Can I transfer a balance from another card to the Sears card?
Sears does not advertise balance transfer offers. The card is designed for purchases at Sears and Kmart, not for transferring debt from other cards. If you need to move a balance from another card, look for a card that specifically offers a balance transfer promotion.