What the Sears Credit Card Is
The Sears credit card is a store card issued by Citi that you can use to make purchases at Sears and Kmart locations, both in-store and online. Unlike a general-purpose credit card, a store card works only at that retailer (or its affiliated stores), and the terms — interest rate, credit limit, rewards — are set by that card issuer, not by Visa or Mastercard.
Store cards often come with promotional offers like a discount on your first purchase or special financing on larger buys. They also report to the three credit bureaus, so using one responsibly can help build your credit history. But they typically carry higher interest rates than standard credit cards, and the credit limit is usually lower.
Key Takeaways
- The Sears card is a store-only card issued by Citi that works at Sears and Kmart but nowhere else.
- New cardholders often receive an introductory discount (usually 10 to 20 percent off a first purchase), but you must read the terms to see what that discount covers and when it expires.
- Interest rates on store cards run higher than most general credit cards, often in the 18 to 24 percent range, so carrying a balance is expensive.
- The card reports to credit bureaus, so on-time payments help your credit score, but missed payments hurt it the same way they would with any card.
- Store cards come with a lower credit limit than you might get with a standard card, which can limit how much you can charge.
How the Introductory Offer Works
When you open a Sears card, you typically receive a discount on your first purchase — the exact percentage varies by promotion, but 10 to 20 percent is common. This discount usually applies only to regular-priced items and excludes sale merchandise, clearance items, and sometimes services like installation or delivery.
The offer is good for a limited time — usually 30 to 60 days from when you open the account. You must use the card to make the purchase; the discount does not explore if you pay with another method. Read the terms carefully before you explore, because the restrictions matter. A 15 percent discount on regular-priced items only is not the same as 15 percent off your entire cart.
Interest Rates and Fees
The Sears card carries a variable interest rate, meaning it can change over time based on market conditions. Current rates typically fall between 18 and 24 percent, though the exact rate you receive depends on your credit history — people with stronger credit scores usually get lower rates. There is no annual fee to hold the card.
If you carry a balance from month to month, you will pay interest on that balance at the card's APR. If you pay your full statement balance by the due date each month, you pay no interest. Late payments trigger a late fee (usually $25 to $40 for the first late payment) and can raise your interest rate further. Some promotional offers include special financing — for example, 12 months with no interest on purchases over a certain amount — but these come with conditions, such as making a minimum monthly payment or paying the full balance by the end of the term.
How a Store Card Affects Your Credit
Opening a Sears card creates a new account on your credit report. This lowers your average account age slightly and triggers a hard inquiry, both of which can dip your credit score by a few points in the short term. Over time, though, the card can help your credit if you use it responsibly.
Payment history is the largest factor in your credit score — about 35 percent of the total. Making on-time payments on the Sears card shows lenders you manage debt reliably. The card also affects your credit utilization ratio, which is how much of your available credit you are using. If you keep your balance low relative to your credit limit, that helps your score. If you max out the card, it hurts your score, even if you pay on time.
Missed or late payments are reported to the credit bureaus and stay on your report for seven years. They damage your score significantly and make it harder to get approved for other credit in the future.
When a Store Card Makes Sense
A Sears card is worth opening if you shop at Sears or Kmart regularly and plan to pay off your balance each month. The introductory discount can save you real money on a planned purchase, and the card costs nothing to hold. If you are building credit from scratch or recovering from past credit problems, a store card can be easier to open than a general credit card, and the payment history helps your score.
A store card is not a good choice if you tend to carry a balance. The interest rate is too high to make that affordable. It is also not useful if you do not shop at Sears or Kmart — a general credit card gives you more flexibility and often comes with better rewards or a lower rate.
Comparing a Store Card to a Regular Credit Card
| Feature | Sears Store Card | General Credit Card |
|---|---|---|
| Where you can use it | Sears and Kmart only | Anywhere that takes Visa, Mastercard, etc. |
| Typical APR | 18–24% | 15–22% (varies widely) |
| Annual fee | None | None to $500+ (depends on card) |
| Introductory offer | Usually 10–20% off first purchase | Varies; often cash back or 0% APR period |
| Rewards | Occasional promotions; no ongoing rewards program | Cash back, points, or miles on every purchase |
| Credit limit | Usually lower ($500–$2,000) | Often higher, depending on credit |
Steps to Take Before Opening a Sears Card
Check your credit report first. You can get a free copy once per year from each of the three credit bureaus at annualcreditreport.com. Look for errors or accounts you do not recognize. If you find mistakes, dispute them before you explore for new credit — a cleaner report improves your chances of approval and a better rate.
Read the full terms and conditions on the Sears website or ask for them in-store. Pay close attention to what the introductory offer covers, when it expires, and what the regular APR will be after any promotional period ends. Understand the late fees and what happens if you miss a payment.
Think about whether you will actually use the card. If you shop at Sears or Kmart only once or twice a year, the card may not be worth the space in your wallet. If you do open it, set a reminder to pay the balance in full each month so you avoid interest charges.
Frequently Asked Questions
Can I use the Sears card at other stores?
No. The Sears card works only at Sears and Kmart locations and their websites. It cannot be used at other retailers. If you need a card that works everywhere, you need a Visa, Mastercard, or American Express card instead.
What happens if I do not pay my Sears card bill on time?
A late payment triggers a late fee (usually $25 to $40) and is reported to the credit bureaus. It damages your credit score and may raise your interest rate. If you miss a payment by 30 days or more, the card issuer may freeze your account or send the debt to a collection agency.
Does opening a Sears card hurt my credit score?
Opening the card causes a small, temporary dip in your score because of the hard inquiry and the new account. Over time, if you pay on time and keep your balance low, the card helps your score. If you miss payments or max out the card, it hurts your score significantly.
Can I transfer a balance from another card to my Sears card?
Sears does not typically offer balance transfer options. The card is designed for purchases at Sears and Kmart, not for moving debt from other cards. If you are trying to consolidate debt, a general credit card with a balance transfer offer may be a better choice.
What is the credit limit on a Sears card?
Credit limits vary based on your credit history and income. Most new cardholders receive a limit between $500 and $2,000, though some may get higher limits. You can request a credit limit increase after you have held the card for several months and made on-time payments.