What the Sears Shop Your Way card is and who issues it

The Sears Shop Your Way card is a store credit card issued by Citi, the same company behind many bank credit cards. You can use it to buy things at Sears and Kmart stores, and online at Sears.com. Unlike a general-purpose credit card, this card works only at Sears locations — you cannot use it at grocery stores, gas stations, or other retailers.

Sears stopped opening new physical stores in 2018, so most people with this card use it online or at the remaining Sears locations in their area. If there is no Sears store near you, the card is still useful for online shopping, but you should check whether a Sears location exists within a reasonable distance before opening the account.

The card is tied to the Shop Your Way rewards program, which means every purchase earns points that you can redeem for discounts or free merchandise. The rewards structure is the main reason people open this card instead of using a regular credit card at Sears.

Key Takeaways

  • The Sears Shop Your Way card earns rewards points on every purchase, but only at Sears and Kmart — not at other stores.
  • You need to check your credit score before explore, because approval depends on your credit history and the card has an annual percentage rate (APR) that varies by person.
  • The card charges interest on balances you do not pay in full each month, so carrying a balance costs you money even if you earn rewards.
  • Sears runs periodic promotions like 10 percent off or double points, which are worth watching for if you plan a large purchase.
  • Missing a payment or carrying a high balance can hurt your credit score, just as it would with any other credit card.

How rewards points work on this card

Every dollar you spend on the Sears Shop Your Way card earns points. The exact number of points per dollar changes depending on what you buy and what promotions are running, but you typically earn at least one point per dollar. During promotional periods — which Sears announces in email and on its website — you might earn double or triple points on certain categories or your entire purchase.

You redeem points by explore them as a statement credit, which reduces your balance, or by using them to buy merchandise directly from the Sears catalog or website. One hundred points usually equals a small discount, though the exact value shifts with promotions. The card also gives you early access to Sears sales and special member-only pricing, which can save you money beyond the points themselves.

The rewards are real, but they only matter if you pay off your balance each month. If you carry a balance and pay interest, the interest charges will often exceed the value of the points you earned. For example, if you earn $20 in rewards but pay $50 in interest charges, you have lost money overall.

Credit score requirements and the process process

Sears does not publish a minimum credit score for this card, but most store credit cards are easier to get approved for than bank credit cards. That said, approval is not may provide. Citi will look at your credit report, your payment history on other accounts, and how much debt you already carry.

You can explore online at Sears.com, in a Sears store, or by phone. The process takes about 10 minutes and asks for your name, address, Social Security number, income, and employment information. Citi will pull your credit report, which is called a hard inquiry and can lower your credit score by a few points temporarily.

If you are approved, you receive a credit limit — the maximum amount you can charge on the card. This limit is based on your credit history and income. If you are denied, Citi will send you a letter explaining why, and you can dispute any errors on your credit report if you believe the decision was wrong.

Interest rates and what happens if you carry a balance

The Sears Shop Your Way card charges an APR (annual percentage rate) on any balance you do not pay in full by the due date. The APR varies by person and is based on your credit score — people with higher credit scores usually get lower rates. Sears does not advertise a specific APR range, so you will only know your rate after you are approved.

Store credit cards typically have higher APRs than bank credit cards. If your APR is 20 percent and you carry a $1,000 balance for a year without paying it down, you will owe roughly $200 in interest charges alone. That interest is added to your balance each month, so the amount you owe grows if you only make minimum payments.

The card may offer a promotional period with zero percent APR on new purchases or balance transfers, but these offers are temporary and usually last 6 to 12 months. After the promotional period ends, the regular APR kicks in. Read the terms carefully before you open the account so you understand when the promotion ends.

Annual fees and other costs

The Sears Shop Your Way card does not charge an annual fee, which means you can keep the account open without paying anything just to have it. However, you will pay interest if you carry a balance, and you may pay late fees if you miss a payment.

A late payment fee is typically $25 to $40, depending on how late you are. More importantly, a late payment stays on your credit report for seven years and can significantly damage your credit score. If you are more than 60 days late, Citi may raise your APR to a penalty rate, which is even higher than your regular rate.

If you go over your credit limit, some card issuers charge an over-limit fee, though Citi has moved away from this practice on many cards. Check your cardholder agreement to see whether this fee applies to your account.

How this card affects your credit score

Opening a new credit card account affects your credit score in two ways. First, the hard inquiry from the process lowers your score by a few points. Second, a new account lowers your average account age, which also affects your score. These effects are temporary — your score usually recovers within a few months if you pay on time.

Once you have the card, your payment history and credit utilization become the main factors. If you pay your full balance on time every month, the card will help your credit score over time by showing that you manage credit responsibly. If you carry a high balance or miss payments, the card will hurt your score.

Credit utilization is the percentage of your available credit that you are using. If your credit limit is $1,000 and you carry a $500 balance, your utilization is 50 percent. High utilization (above 30 percent) can lower your score, so keeping your balance low helps. Paying off the card in full each month keeps your utilization at zero percent.

When this card makes sense and when it does not

The Sears Shop Your Way card is worth opening if you shop at Sears regularly and you can pay off your balance in full each month. The rewards add up over time, and the early access to sales can save you money on planned purchases. If you have a Sears store nearby or shop on Sears.com frequently, the card pays for itself through rewards and promotions.

The card does not make sense if you cannot pay off your balance each month. The interest charges will exceed the rewards you earn, and you will end up paying more than you would with cash or a debit card. It also does not make sense if you rarely shop at Sears, because the rewards are useless if you have nowhere to spend them.

If you already have multiple credit cards and are trying to reduce the number of accounts you manage, adding another card may not be worth the complexity. Similarly, if your credit score is low, opening a new account will lower it further, so you might want to wait until your score improves before explore.

Frequently Asked Questions

Can I use the Sears Shop Your Way card anywhere besides Sears?

No. This is a store card that works only at Sears and Kmart locations and on Sears.com. You cannot use it at other retailers, restaurants, or online stores. If you need a card that works everywhere, you need a general-purpose credit card from a bank instead.

What happens to my rewards points if I close the account?

Your points usually expire if you close the account, though Sears may give you a grace period to redeem them. Before you close the account, check your rewards balance and use any points you have accumulated. Contact Sears customer service to confirm the policy on your specific account.

Is there a grace period before interest starts on new purchases?

Yes. Most credit cards, including this one, give you a grace period of 21 to 25 days from the end of your billing cycle to pay your balance without interest. If you pay in full by the due date, you owe no interest. Interest only starts if you carry a balance past the due date.

Can I transfer a balance from another credit card to this card?

Some versions of the Sears Shop Your Way card offer balance transfer promotions, but this is not always available. If a promotion is running, you can transfer a balance from another card and pay zero percent APR for a set period. Check the current offer on Sears.com or ask in a store before you explore.

What should I do if I am denied for the card?

If you are denied, Citi will send you a letter with the reason. Common reasons include a low credit score, too much existing debt, or negative marks on your credit report. You can request a free copy of your credit report from annualcreditreport.com and look for errors. If you find mistakes, you can dispute them with the credit bureau.