Do you know what a store card is? If not, you should, especially if you are a frequent client at a typical store like a retailer.

Store cards are not new additions to the market, and many use them because they seem to offer better conditions for purchases.

However, that is not always true. No matter if you hold a store card or a traditional credit card, you must be in control of your debt if you don’t want to sink into further debt.

But which card is the cheapest? And which card offers the best features?

Then, continue reading this complete guide to learning how a store card works and how to choose the best for you.

Firstly, a store card is like a credit card, but it can only be used in a determined group of stores or chains.

Nowadays, many store cards allow you to use them outside of the chain or the store. Thus, you can use them just like another traditional credit card.

But they usually offer something extra when you purchase at the store that issued the card.

For example, imagine a store card from an online store. It will give you amazing rewards for you to buy on the store. You can still use the card outside the store, but you won’t earn the higher rewards tier.

Regularly, store cards come with a membership fee. On the other hand, you may be able to find cards that don’t charge fees at all.

Of course, you need to consider whether you want to become a store client or not. Actually, this is the first point you must take into consideration before applying for a store card.

On the other hand, if you find a cheap but valuable card, it might be worth considering becoming a client to accumulate rewards and get good discounts.

Store cards work just like credit cards. That is, you borrow an amount of money from an institution the moment you make a purchase. Then, you must pay the institution back according to the terms and conditions signed when you applied for the card.

Usually, a card billing cycle takes from 27 to 31 days. If you don’t pay the bill on time, interest will apply. 

In fact, that’s what happens the most worldwide. People sink into debt because they cannot pay the debt accumulated in a store or credit card.

Unlike a credit card, though, it is much easier to be approved when applying for one.

Traditionally, the best credit cards available on the market request several eligibility requirements. 

On the contrary, store cards offer much easier application processes. So, many people rely on that to get a card that works just like any other credit card.

But does it work exactly like a credit card? Take a look at the differences below.

In general, store cards work like credit cards. However, they have some particularities you may enjoy learning before deciding to choose the best for you.

To sum up, a store card usually allows its cardholder to use the card in a specific store. A credit card, on the other hand, can be used wherever you are in the world.

Traditionally, store cards can only be used in a specific store or chain of stores. Nowadays, some store cards allow clients to use them wherever a Mastercard or Visa is accepted. 

But, it is not all cards that do it.

In fact, most of them don’t allow you to use it outside of a specific store, unfortunately.  

Also, most store cards charge membership fees. Although you may be able to find cheap store cards, they usually charge higher fees and higher interest than traditional credit cards.

So, it is really important to make sure you will be able to earn more with a card before applying for one. Otherwise, a credit card is better!

Certainly, getting a great credit card requires many requirements, especially when it comes to creditworthiness. Most credit cards require good credit scores, indeed.

On the other hand, it is much easier to be approved when applying for a store card.

Therefore, many people rely on that to be able to hold a card that works just like a credit card.

But you must watch out for the fees and rates. Additionally, make sure you frequently purchase at the store that issues the card.

Store cards have advantages and disadvantages. So, it is crucial to balance the pros and cons before deciding to get one.

So, now you know what a store card is, you are able to decide whether to apply for one or not. 

However, if you want a traditional credit card, especially if you are a frequent traveler, read the following article to find out more about the best cards available for those who want to travel abroad with rewards, protection, and convenience.