It’s soon-to-be back-to-school shopping season, and that means sales, supply lists, and – if you’re in line at a major retailer, being asked, “Would you like to save 25% by opening a store card today?” Sounds tempting, especially with a full cart. But before you sign up, it’s important to understand how store credit cards work and whether they’re a smart financial move. 

We’re here to bust some myths and give you the facts, so you can shop smarter rather than spend more. 

What is a store card? 

Store cards are a type of credit card you can only use at a specific store or chain. They often come with tempting perks like discounts, early access to sales, and free shipping offers, but they also typically carry much higher interest rates than standard credit cards. 

If you don’t pay off your balance in full each month, that initial discount could cost you far more in interest charges down the road. 

How are they like credit cards? 

Just like a traditional credit card, a store card lets you make purchases now and pay later. You must be at least 18 to apply, and approval usually depends on your credit history. And, just like a credit card, failing to make timely payments can hurt your credit score. 

5 Things you should know before opening a store card 

1. Higher interest rates 

• Most store cards have APRs of 25% or more, significantly higher than many traditional credit cards. Unless you pay your balance in full each month, that “discount” can quickly disappear.

2. No 0% APR intro deals 

• Unlike many major credit cards, store cards rarely offer 0% introductory APR periods, which means interest starts adding up right away. 

3. Perks come with limits 

• The initial discount you’re offered (usually 10–20%) may be for that day only. Afterward, you may get member-only coupons or free shipping offers, but the ongoing perks vary by store. 

4. Not all “store cards” are true store cards 

• Some retailers offer co-branded credit cards backed by a major network (like Visa or Mastercard), which you can use anywhere. These are different from store-only cards. 

5. Cashback cards may be better 

• A general cashback credit card could give you 1%–5% back on every purchase – at any store. If you shop around or use multiple retailers, a cashback card may be a more versatile, money-saving option. 

Pros of store cards 

• Access to exclusive discounts and deals 

• Free shipping or early access to sales 

• Easier approval than traditional cards for those with lower credit scores 

Cons of store cards 

• Higher interest rates if you don’t pay in full 

• Can only be used at one store 

• May tempt you to overspend or buy more than planned 

• Too many applications can hurt your credit score 

• May be pushed by commission-based staff who can’t fully explain the terms 

A word on “Buy Now, Pay Later” options like Klarna 

Online retailers often offer “pay later” services like Klarna or Afterpay. These allow you to delay payment (usually 14 – 30 days) or break it up into smaller installments. It sounds convenient – but like credit cards, missing payments can impact your credit score. 

Ask yourself: If I couldn’t delay payment, could I still afford this purchase? 

Final thought 

That store card pitch at checkout might sound like a good deal when you’re juggling backpacks, lunchboxes, and sneakers, but think twice. If you’re confident you can pay the balance in full each month, the card might offer real value. If not, those perks could cost more than you bargained for. 

 Shop smart. Stay savvy. And keep your back-to-school season stress-free – for your wallet and your peace of mind.