What the Sears Citi Credit Card is and who issues it
The Sears Citi Credit Card is a store card issued by Citibank that you can use at Sears and Kmart locations. It works like a standard credit card — you make purchases, receive a monthly bill, and pay interest on any balance you carry. The card is not a general-purpose card; you cannot use it outside Sears and Kmart stores, online at Sears.com, or at other retailers.
Citibank manages the account, handles billing, and sets the interest rate and fees. Sears itself does not issue the card, though the card carries the Sears brand and the rewards program is tied to Sears purchases. If you already have a Sears card from before Citibank took over the program, your account may have been transferred to Citibank's system.
Key Takeaways
- The Sears Citi Credit Card can only be used at Sears and Kmart stores, not at other retailers or online.
- The card charges an annual percentage rate (APR) that varies by creditworthiness, and Citibank sets the terms and fees.
- Rewards are earned as points on Sears purchases, but the redemption value and point rates depend on your account status and current promotions.
- Late payments, missed payments, and high balances can damage your credit score because Citibank reports to the three major credit bureaus.
How the rewards program works
The Sears Citi card earns points on purchases made at Sears and Kmart. The exact point rate and redemption value change based on promotions and your account status, so you should check your statement or call Citibank to confirm the current rate before relying on it for a major purchase.
Points are typically redeemed as statement credits or discounts on future Sears purchases. Some promotions offer bonus points during certain months or on specific product categories. Because Sears has gone through bankruptcy and store closures, the number of locations where you can redeem rewards has shrunk, so confirm that a store near you is still open before counting on the card for regular shopping.
Interest rates, fees, and the cost of carrying a balance
The Sears Citi card charges an APR that varies based on your credit score and credit history. Citibank does not publish a single rate; instead, you receive an offer with a specific APR when you are approved. That rate can change if you miss a payment or if Citibank reviews your account.
There is no annual fee to hold the card. However, if you carry a balance from month to month, you will pay interest on that balance at your APR. For example, a $1,000 balance at 20% APR costs roughly $17 per month in interest alone. The longer you carry the balance, the more interest you pay, and the slower you pay down the principal.
Late payments trigger a late fee and can raise your APR to a penalty rate, which is typically higher than your standard rate. Missing a payment also reports to the credit bureaus and damages your credit score, making it harder and more expensive to borrow money elsewhere.
How the card affects your credit score
Citibank reports your Sears card activity to Equifax, Experian, and TransUnion — the three major credit bureaus. This means every payment you make (or miss) and every balance you carry shows up on your credit report and factors into your credit score.
A high balance relative to your credit limit — called your utilization ratio — lowers your score even if you pay on time. Carrying a $5,000 balance on a $10,000 limit hurts your score more than carrying the same $5,000 on a $25,000 limit. Paying down the balance improves your score faster than waiting for time to pass.
If you miss a payment by 30 days or more, that mark stays on your credit report for seven years. A single missed payment can drop your score by 100 points or more, depending on your starting score and credit history.
When the Sears Citi card makes sense and when it does not
The card is useful if you shop at Sears or Kmart regularly and can pay your full balance each month. In that case, you earn rewards with no interest cost, and the card costs nothing to hold. The rewards rate is modest compared to general-purpose cards, but it is better than paying cash.
The card is a poor choice if you carry a balance. The interest you pay will quickly exceed any rewards you earn. A $2,000 balance at 20% APR costs $400 per year in interest; you would need to earn $400 in rewards to break even, which requires spending far more than most households spend at Sears annually.
The card is also limited by the shrinking number of Sears and Kmart locations. If there is no store near you or you do not shop there regularly, a general-purpose card from Visa, Mastercard, or American Express gives you more flexibility and often better rewards.
How to manage the card if you have one
If you already hold a Sears Citi card, treat it like any other credit card: pay the full balance by the due date each month, or pay as much as you can afford to reduce the balance. Set up automatic payments through Citibank's website or app to avoid missing a due date.
Check your statement each month to confirm the charges are correct and to track your balance. If you notice fraud or an error, contact Citibank when ready — you have the right to dispute unauthorized charges, and Citibank must investigate within 30 days.
If you are carrying a balance and struggling to pay it down, contact Citibank to ask about hardship programs or payment plans. Citibank may offer a lower interest rate or a structured repayment plan if you explain your situation. Asking is free and does not hurt your credit score.
Alternatives if you do not have a Sears card yet
If you are considering opening a Sears Citi card, first compare it to a general-purpose card like a Visa or Mastercard. A 2% cash-back card from a bank or credit union works at any store, online, and in restaurants, whereas the Sears card works only at Sears and Kmart. Over a year, the flexibility of a general-purpose card usually outweighs the modest rewards of a store card.
If you do not have a credit history yet and are trying to build credit, a store card can be easier to get approved for than a general-purpose card. However, a secured credit card — where you deposit money upfront and borrow against it — often has lower fees and better terms for building credit from scratch.
Frequently Asked Questions
Can I use the Sears Citi card online at Sears.com?
Yes, the card works on Sears.com for online purchases. However, it does not work at other retailers' websites or at stores outside the Sears and Kmart network.
What happens to my Sears card if a store near me closes?
Your account remains open and active. You can still use the card at any remaining Sears or Kmart location, or online at Sears.com. The card does not close just because a store closes.
How do I check my balance and make a payment?
Log into your account on Citibank's website or call the customer service number on the back of your card. You can make a payment online, by phone, or by mail. Payments typically post within one to two business days.
What is the credit limit on the Sears Citi card?
Your credit limit depends on your credit score and income at the time you are approved. Citibank does not publish a standard limit. You can ask Citibank to increase your limit after six months of on-time payments, but there is no may provide.
Does closing the card hurt my credit score?
Closing a card can lower your score slightly because it reduces your total available credit and changes your utilization ratio. However, the impact is usually small and temporary if you have other open accounts in good standing.