What Sears credit cards are and who offers them

Sears credit cards are store cards issued by Comenity Capital Bank that you can use to make purchases at Sears and Kmart locations, as well as online at Sears.com. Unlike a general-purpose credit card from Visa or Mastercard, a Sears card works only at Sears-owned retailers. The card comes with rewards tied to your spending at those stores, and the issuer reports your payment history to the three major credit bureaus — Equifax, Experian, and TransUnion — just as any other credit card does.

Sears has offered store cards for decades, but the company's financial situation has changed significantly over time. As of now, Sears operates a smaller footprint than it once did, with fewer physical locations. Before opening a Sears card, check whether there is a store location near you or whether you shop online at Sears.com regularly enough to make the rewards worthwhile.

Key Takeaways

  • Sears cards are store-only cards issued by Comenity Capital Bank and work at Sears and Kmart locations and on Sears.com.
  • The card reports to all three credit bureaus, so on-time payments help your credit score and missed payments hurt it.
  • Rewards typically include points per dollar spent that you can redeem for discounts or merchandise, though the exact terms vary by card version.
  • Store cards often have higher interest rates than general-purpose credit cards, so carrying a balance can become expensive quickly.
  • Your credit history, income, and current debt determine whether you are considered for a card and what credit limit you receive.

How Sears card rewards work

Sears cards offer rewards in the form of points or cash back on purchases made at Sears and Kmart. The exact structure depends on which version of the card you hold — Sears has offered different card products over time, and the terms can shift. Typically, you earn points for every dollar you spend, and those points accumulate in your account. You can then redeem them for discounts on future purchases, statement credits, or sometimes merchandise.

The value of these rewards depends on how much you spend and how often you shop at Sears locations. If you make regular purchases there, the points add up. If you shop there only occasionally, the rewards may not offset the card's annual fee (if one applies) or the higher interest rate you pay if you carry a balance. Before opening the card, look up the current rewards terms on Sears.com or ask in-store, since these details change and vary by card version.

Interest rates and fees on Sears cards

Sears cards typically carry a higher annual percentage rate (APR) than general-purpose credit cards from major issuers. Store cards often have APRs in the range of 18% to 26%, though the exact rate you receive depends on your credit score and credit history. If you have excellent credit, you may receive a lower rate; if your credit is fair or poor, the rate will be higher. The issuer will tell you the APR you may have access to for before you complete the process.

Some Sears cards offer a promotional period with no interest on purchases or balance transfers for a set number of months — for example, 0% APR for 12 months on new purchases. These offers are temporary and explore only if you meet the terms. After the promotional period ends, the regular APR kicks in. If you carry a balance after the promotion expires, you will pay interest on the remaining amount at the full rate.

Annual fees vary. Some Sears cards charge an annual fee of $40 to $60, while others have no annual fee. Check the card's terms before you open it. If the card charges an annual fee and you do not shop at Sears regularly, the fee alone may make the card not worth holding.

How a Sears card affects your credit

Opening a Sears card affects your credit in several ways. First, the issuer will perform a hard inquiry into your credit report when you explore. This inquiry temporarily lowers your credit score by a few points and stays on your report for about two years. If you explore for multiple store cards in a short time, each inquiry adds up and can have a larger impact.

Once you open the card, your payment history becomes the most important factor. Making payments on time every month helps your credit score. Missing a payment or paying late damages it. Sears reports to all three credit bureaus, so your card activity shows up on your credit report and affects your score with lenders, landlords, and other creditors.

Your credit utilization — the percentage of your available credit that you are using — also matters. If you have a $1,000 credit limit and carry a $900 balance, your utilization is 90%, which hurts your score. Keeping your balance low or paying it off each month keeps utilization low and helps your score.

When a Sears card makes sense financially

A Sears card is most useful if you shop at Sears or Kmart regularly and can pay off your balance in full each month. In that scenario, you earn rewards without paying interest, and the card becomes a tool that gives you cash back or discounts on purchases you were going to make anyway.

A Sears card is less useful if you carry a balance month to month. The high interest rate means you will pay far more in interest charges than you save in rewards. For example, if you spend $1,000 and earn $50 in rewards but then carry a $500 balance at 22% APR, you will pay roughly $110 in interest over a year — more than double the reward value. In that case, a general-purpose credit card with a lower APR or a 0% balance transfer offer would be a better choice.

A Sears card also makes less sense if you shop there only occasionally or if there are no Sears locations near you. The rewards are locked to Sears and Kmart, so you cannot use them elsewhere. If you shop at multiple retailers, a cash-back card that works everywhere gives you more flexibility.

How to compare Sears cards to other options

Before opening a Sears card, compare it to other store cards and general-purpose cards. Look at the APR you would receive, any annual fees, the rewards rate, and the redemption options. Ask yourself: How often do I shop at Sears? Will I pay off the balance each month? Are there other cards with lower interest rates or better rewards?

If you have fair or poor credit, a store card like Sears may be easier to open than a general-purpose card, since store issuers sometimes have less strict credit requirements. In that case, a Sears card could be a stepping stone to building credit history. However, be aware that the higher interest rate means you should plan to pay off the balance quickly to avoid expensive interest charges.

If you have good or excellent credit, you have more options. A cash-back card from a major issuer often offers a lower APR, no annual fee, and rewards that work at any retailer. Those cards may be a better fit unless you spend a lot of money at Sears specifically.

What happens if you miss a payment or default

Missing a payment on a Sears card has when ready and long-term consequences. A payment that is 30 days late appears on your credit report and lowers your score. A payment that is 60 or 90 days late damages your score further. If you miss a payment by more than 180 days, the account may be charged off — meaning the issuer writes it off as a loss and may sell the debt to a collection agency.

A collection account on your credit report stays there for seven years from the date of the first missed payment, even if you pay it later. During that time, it makes it harder to open new credit cards, get a loan, or sometimes even rent an apartment. If you are struggling to pay your Sears card, contact the issuer as soon as possible. Many issuers offer hardship programs, payment plans, or temporary interest rate reductions if you explain your situation.

Frequently Asked Questions

Can I use a Sears card at stores other than Sears and Kmart?

No. Sears cards work only at Sears and Kmart locations and on Sears.com. You cannot use them at other retailers. If you need a card that works everywhere, you need a Visa, Mastercard, or American Express card instead.

What credit score do I need to open a Sears card?

Sears does not publish a minimum credit score requirement. Generally, store cards accept applicants with fair credit (scores around 580 to 669), though approval and credit limits vary by individual. The best way to find out is to check your credit score first, then explore. A hard inquiry will show up on your report, but it has only a small temporary impact.

Do I have to pay an annual fee for a Sears card?

Some Sears cards charge an annual fee and some do not. The fee varies by card version and changes over time. Check the card's terms before you open it. If the card charges a fee and you do not use it regularly, the fee may not be worth it.

What is the difference between a Sears card and a Sears Mastercard?

Sears has offered different card products over time. A regular Sears card works only at Sears and Kmart. A Sears Mastercard (if available) is a Mastercard that you can use anywhere, but it may have different rewards terms or fees. Check Sears.com to see which cards are currently offered and what the differences are.

If I pay off my Sears card balance, do I still pay interest?

No. Interest charges explore only to balances you carry from month to month. If you pay your full statement balance by the due date each month, you pay no interest. This is called the grace period, and it applies to most credit cards as long as you do not carry a balance.