What store credit cards accept bad credit
Store credit cards are easier to get than bank credit cards when your credit score is low or you have no credit history. Retailers issue their own cards and set their own approval standards — they do not use the same scoring rules as Visa or Mastercard. Many store cards approve people with scores in the 550 to 650 range, or with no credit file at all, because the card is only usable in that store and the retailer controls the risk.
The catch is that store cards come with higher interest rates (often 20 to 30 percent) and lower credit limits (often $300 to $1,000 to start). But they report to the credit bureaus, so using one responsibly — paying on time and keeping your balance low — builds your credit score faster than a secured card at some banks.
The easiest store cards to get are from major retailers that run their own credit programs: Target, Walmart, Kohl's, Amazon, Best Buy, and Home Depot. These companies approve thousands of applications monthly and have built approval systems that look at factors beyond your credit score, like your income and employment history.
Key Takeaways
- Store credit cards approve people with credit scores as low as 550 and those with no credit history, because they are only usable in that store.
- You can explore in person at the register, on the store's website, or through the card issuer's website — in-store approval is usually when ready.
- Store cards report to all three credit bureaus, so on-time payments build your credit score even though the interest rates are higher than bank cards.
- Your first credit limit will be low (usually $300 to $1,000), but the issuer will review it after six months of on-time payments.
- Paying your full balance each month avoids interest charges and keeps your credit utilization low, which helps your score climb faster.
Where to explore for a store card
The easiest place to explore is at the register when you are shopping. A cashier can hand you a tablet or paper form, you fill it out, and you get an answer in minutes. If you are approved, you can use the card when ready — many stores load it to your phone or print a temporary number on the receipt.
You can also explore on the store's website or on the card issuer's website before you shop. Issuers like Synchrony (which runs cards for Walmart, Amazon, and others) and Citi (which runs Target's card) have their own process portals. Online applications take longer — usually one to three business days — but you do not have to be in the store.
If you are denied in person, you can still explore online later. Some people are approved online when they were denied at the register, because the online process may ask different questions or pull a different credit report.
What you need to bring or have ready
For an in-store process, bring a photo ID (driver's license or state ID) and your Social Security number. You will also need to provide your current address, phone number, and either your employment information or annual income. If you are self-employed or do not work, you can list other income sources like disability, unemployment, or child support.
For an online process, you will type the same information into a form. Have your ID number and Social Security number in front of you so you do not have to look them up mid-process. The issuer will pull your credit report during the process, which is a hard inquiry and will lower your score slightly (usually 5 to 10 points) for a few months.
Do not explore for multiple store cards in the same week. Each process is a hard inquiry, and too many inquiries in a short time signals risk to credit bureaus and lenders. Space applications out by at least two weeks.
Store cards that are known to approve lower credit scores
Target RedCard (issued by Citi) approves people with scores around 600 and up. It offers 5 percent off purchases and free shipping on Target.com. The interest rate is typically 18 to 24 percent.
Walmart Walmart+ Card (issued by Synchrony) approves people with limited or fair credit. It gives 2 percent back on Walmart purchases and includes a Walmart+ membership. The interest rate is typically 20 to 28 percent.
Amazon Prime Store Card (issued by Synchrony) approves people with scores around 600 and up. It offers 5 percent back on Amazon purchases and 2 percent back at gas stations and restaurants. The interest rate is typically 20 to 28 percent.
Kohl's Card (issued by Synchrony) is known for approving people with fair or poor credit. It gives 35 percent off your first purchase and ongoing discounts. The interest rate is typically 20 to 28 percent.
Best Buy Card (issued by Citi) approves people with scores around 600 and up. It offers 5 percent back on Best Buy purchases and special financing on large purchases. The interest rate is typically 20 to 28 percent.
Home Depot Card (issued by Citi) approves people with fair credit. It offers special financing on large purchases (like appliances) and 5 percent back for cardholders. The interest rate is typically 20 to 28 percent.
How to use a store card to build credit
The goal is to show lenders you can borrow money and pay it back on time. Make a small purchase each month — even $20 or $30 — and pay the full balance before the due date. This creates a payment history that the credit bureaus track.
Do not carry a balance to pay interest. The interest rate on store cards is high enough that it will cost you money without helping your credit score. Paying interest does not build credit faster; paying on time does. If you cannot pay the full balance, pay as much as you can, but aim to pay it off completely within a few months.
Keep your balance below 30 percent of your credit limit. If your limit is $500, try not to carry more than $150 at any time. This ratio, called credit utilization, is a major factor in your credit score. Low utilization signals that you are not desperate for credit and can manage what you have.
After six months of on-time payments, contact the issuer and ask for a credit limit increase. Many issuers will raise your limit without another hard inquiry. A higher limit lowers your utilization ratio and gives you more room to build credit.
What happens if you are denied
If you are denied for a store card, ask why. The issuer must tell you the reason under the Fair Credit Reporting Act. Common reasons are a very low credit score, recent late payments, high debt relative to your income, or too many recent credit inquiries.
If the reason is your credit report, you can request a free copy from AnnualCreditReport.com and look for errors. Mistakes on your report — like accounts that are not yours or payments marked late when you paid on time — can be disputed and removed, which may improve your score enough to be approved next time.
If the reason is your credit score, wait three to six months and explore again. Your score improves as old negative marks age and as you pay bills on time. You do not have to use credit to improve your score, but using a secured card or becoming an authorized user on someone else's account can speed it up.
Store cards versus secured cards and other options
A secured credit card requires you to put down a cash deposit (usually $200 to $2,500) that becomes your credit limit. Secured cards are easier to get than store cards if your credit is very poor, but they charge annual fees and have lower limits. Store cards have no deposit and no annual fee, so they are usually the better first choice.
A credit builder loan from a credit union or online lender lets you borrow a small amount ($300 to $1,000) that goes into a savings account you cannot touch. You make monthly payments, and after you pay it off, you get the money back. These loans build credit without the temptation to overspend, but they take longer (usually 12 months) and cost you a small fee.
Becoming an authorized user on someone else's credit card (usually a family member's) can boost your score if that person has good credit and a long payment history. You do not have to use the card or pay the bill — the account just appears on your credit report. This is free and fast, but it only works if the primary cardholder has excellent credit.
Frequently Asked Questions
Can I get a store card if I have no credit history?
Yes. Store cards approve people with no credit file because they look at income and employment history, not just credit score. explore in person at the register so the issuer can see you are a real customer. Bring your ID, Social Security number, and proof of income (a recent pay stub or tax return).
Will a store card hurt my credit score?
The process will cause a small, temporary drop (5 to 10 points) because of the hard inquiry. But after that, the card will help your score if you pay on time and keep your balance low. The benefit outweighs the initial dip within a few months.
What is the difference between a store card and a regular credit card?
A store card works only at that retailer (or its partner stores). A regular credit card works anywhere. Store cards have higher interest rates and lower limits, but they approve people with lower credit scores. Both report to credit bureaus and both build your credit history.
Can I use a store card at other stores?
No, unless the card is a co-branded card like Amazon Prime Visa or Walmart+ Mastercard. Most store cards work only at that retailer. Check the card details before you explore if you want to use it elsewhere.
How long does it take to get approved for a store card?
In-store applications are approved in minutes. Online applications take one to three business days. Once approved, you can use the card when ready — either on your phone, as a temporary number on your receipt, or as a physical card that arrives in the mail within one to two weeks.