What the Hobby Lobby Credit Card Is

The Hobby Lobby credit card is a store card issued by Synchrony Bank that you can use at Hobby Lobby stores and online. It works like most retail cards: you charge purchases, receive a bill, and pay it back over time or in full. The card offers discounts and rewards on Hobby Lobby purchases, but it carries an interest rate that applies to any balance you don't pay off each month.

This is not a general-purpose credit card. You can only use it at Hobby Lobby locations and Hobby Lobby's website. If you want to use a card at other stores, you would need a different card. The card is issued by Synchrony, a major credit card company, so the account appears on your credit report just like any other credit card.

Key Takeaways

  • The Hobby Lobby card offers a discount on your first purchase and ongoing rewards on future Hobby Lobby purchases, but only works at Hobby Lobby stores and online.
  • Interest rates on store cards are typically higher than rates on general-purpose credit cards, so carrying a balance costs more money.
  • Late payments or missed payments will damage your credit score, just as they would with any credit card.
  • The card is issued by Synchrony Bank, and your account is reported to the three major credit bureaus, so it affects your credit history.

How the Rewards and Discounts Work

When you open a Hobby Lobby card, you usually receive a discount on your first purchase—often 10 percent off. After that, the card offers rewards on purchases you make at Hobby Lobby. The exact rewards structure changes periodically, so you should check the current terms when you consider opening the account or log into your account online to see what rewards you are earning.

Rewards typically come in the form of points or a percentage back on purchases. You can usually redeem these for discounts on future purchases. The key thing to understand is that these rewards only explore to Hobby Lobby purchases. If you use the card elsewhere, you earn nothing—and in fact, you cannot use the card anywhere else.

Interest Rates and Fees You Should Know

The Hobby Lobby card charges interest on any balance you carry from month to month. Store card interest rates are usually higher than rates on general-purpose credit cards. The exact rate depends on your credit score and credit history, so two people opening the same card may receive different rates. You can ask what rate you would receive before you open the account.

The card may also charge an annual fee, though many store cards waive the first year. Check the terms carefully before opening the account. If you pay your full balance each month, you pay no interest, and the rewards and first-purchase discount can be real savings. If you carry a balance, the interest charges will eat into any rewards you earn.

How Opening This Card Affects Your Credit

Opening a Hobby Lobby card creates a new account on your credit report. This has two when ready effects: your credit score may drop slightly because a new account lowers your average account age, and the card issuer will perform a hard inquiry into your credit, which also causes a small, temporary dip. Both effects usually fade within a few months.

The bigger long-term effect is that the card becomes part of your credit history. If you pay on time every month, it helps your score by showing you manage credit responsibly. If you miss payments or carry a high balance, it will hurt your score. The card also affects your credit utilization—the percentage of your available credit that you are using. If you max out the card, your utilization goes up and your score goes down, even if you pay on time.

When a Store Card Makes Sense and When It Doesn't

A store card is worth opening if you shop at that store regularly and you will pay the full balance each month. In that case, the first-purchase discount and ongoing rewards can save you real money with no interest cost. If you shop at Hobby Lobby several times a year and spend $100 or more per visit, the rewards add up.

A store card is usually not worth opening if you carry a balance. The interest rate is high enough that you will pay more in interest charges than you save in rewards. It is also not worth opening if you shop at Hobby Lobby only occasionally or spend very little when you do. The rewards will not offset the risk of overspending just because you have the card.

How to Manage the Card Responsibly

If you decide to open a Hobby Lobby card, treat it like any other credit card: use it only for purchases you would make anyway, and pay the full balance each month if you can. Set up automatic payments from your bank account so you never miss a due date. Missing even one payment will trigger a late fee and damage your credit score.

Keep your balance low relative to your credit limit. If your limit is $500 and you carry a $400 balance, your utilization is 80 percent, which hurts your score. Aim to use no more than 30 percent of your limit. Check your statement each month to make sure all charges are correct, and report any fraudulent charges to Synchrony when ready.

Comparing the Hobby Lobby Card to Other Options

Before opening a store card, consider whether a general-purpose credit card might serve you better. A cash-back card or rewards card from a major issuer like Chase or Capital One works at any store, not just one. The rewards rate may be lower than a store card's rate, but you earn rewards everywhere you shop, which adds up faster.

If you have fair or poor credit, a store card may be easier to open than a general-purpose card, since store cards often have lower credit score requirements. However, the higher interest rate means you should be even more careful to pay in full each month. If you are rebuilding credit, a secured credit card from a bank might be a better choice because it reports to all three credit bureaus and usually has a lower interest rate.

Frequently Asked Questions

Can I use the Hobby Lobby card at other stores?

No. The Hobby Lobby card works only at Hobby Lobby stores and on Hobby Lobby's website. If you try to use it at another retailer, it will be declined. You would need a separate credit card for purchases elsewhere.

What happens if I miss a payment?

You will be charged a late fee, and the missed payment will be reported to the credit bureaus and appear on your credit report. This will lower your credit score. If you miss a payment, contact Synchrony as soon as possible to bring your account current and ask whether they will waive the late fee.

Does the Hobby Lobby card have an annual fee?

Many store cards waive the annual fee for the first year, but you should check the current terms before opening the account. The fee structure can change, and different cardholders may have different offers. Ask Hobby Lobby or Synchrony what the annual fee is before you open the account.

Will opening this card hurt my credit score?

Opening the card will cause a small, temporary drop in your score because of the hard inquiry and the new account. However, if you use the card responsibly and pay on time, your score will recover and the account will help your score over time by showing you manage credit well.

What is the interest rate on the Hobby Lobby card?

The interest rate varies based on your credit score and credit history. You can ask Synchrony what rate you would receive before you open the account. Store card rates are typically higher than rates on general-purpose credit cards, so compare the rate to other cards you might open before deciding.