Store Card vs Credit Card – Which is best?

There are many different ways to borrow money and a lot of them are quite different. This means that when you do need or want to borrow money you should fairly easily be able to pick the most appropriate loan. However, there are some that are similar such as a store card and credit card. It is good to understand what the main differences are between them so that you can choose the most appropriate.

Where you can use them

A store card can normally only be used when buying things in a particularly store or chain of stores. So, if you have one for a specific retailer, you will only be able to use it at the branches of that retailer. So, you can use it in any branch across the country, but it will not be accepted in any other shop or be able to used when buying online apart from that particular retailer. Some has parents stores or sister stores that you might be able to spend them at as well but there will still be limitations.

With a credit card you can use it in most places. There will be some shops that do not accept credit cards at all but they are unlikely to have a store card either, so this may not be relevant in your decision. However, being able to use a card across lots of different retailers could be important. It has advantages in that you will be able to use it anywhere and take advantage of the credit that you get. However, this could be see as a disadvantage as it will mean that it is easy to spend lots of money on lots of different things and it could lead you to getting into more debt.

Discounts and offers

With a store card the card holders might get benefits. Sometimes they get discounts on products or they might get preview sale prices and things like this. If it is for a shop that is used regularly those discounts could be worth a lot of money and it could be well worth getting the card. Most credit cards do not offer anything like this. However, there are a few cards that will offer a small amount of cashback on spending. These do tend to charge extra high interest though so are only worth considering if you are really confident that you will be able to repay the full balance of the card each month and therefore pay no interest.


The cost of store cards can sometimes be a bit higher than a credit card. Both tend to charge high interest though compared with some other types of lending. It is well worth consider this cost. If you intend to pay the full balance each month so that you so not have to pay any interest then it is less relevant but it is still worth making sure you are aware of the difference just in case you are ever in the situation where you do not have the money to repay the full balance.

So, it is not really an easy decision to make, but you will be able to judge it based on your own circumstance. Consider why you are considering getting a card and then think about which will suit your needs the best. However, be sure to think about the cost. Consider whether having either card will be a good idea for you and if you feel that it will be okay and that you will be able to only use it when you really need to buy things not just because you have all of the credit that you can spend.

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