What the Shop Your Way Credit Card is and who issues it
The Shop Your Way credit card is a store card issued by Sears that you can use to make purchases at Sears and Kmart locations, both in-store and online. It is not a general-purpose card like Visa or Mastercard — it only works at those two retailers. Sears Financial Services, a subsidiary of Transformco (the company that owns Sears), manages the account.
Store cards typically offer rewards or discounts tied to shopping at that retailer, but they also tend to carry higher interest rates than general credit cards. The Shop Your Way card is designed for people who shop at Sears or Kmart regularly and want to earn rewards on those purchases.
Key Takeaways
- The Shop Your Way card works only at Sears and Kmart, not at other retailers, so it is useful mainly if you shop at those stores regularly.
- The card earns Shop Your Way points on purchases, which can be redeemed for discounts or rewards, but the redemption value depends on how you use the points.
- Interest rates on store cards are typically higher than rates on general credit cards, so carrying a balance can become expensive quickly.
- You will need to meet Sears's credit requirements to open the account, and your credit limit will depend on your credit history and income.
- The card may offer promotional financing periods (such as no interest for a set number of months on large purchases), but these come with terms you need to read carefully.
How the rewards program works
The Shop Your Way card earns points on every dollar you spend at Sears or Kmart. The exact earning rate and redemption value can change, so you should check the current terms on the Sears website or your account statement. Points are typically redeemed as discounts on future purchases or as Shop Your Way rewards.
One key difference between store cards and general credit cards is that store card rewards are usually worth less in real dollars. A general credit card might give you 1.5% cash back (meaning $1.50 back for every $100 spent), while a store card might earn points that equal 1% or less when you redeem them. The appeal of a store card is usually the promotional offers — discounts on specific purchase dates, extra points during certain months, or financing deals — rather than the everyday earning rate.
To use your points, you log into your Shop Your Way account online or tell the cashier at checkout that you want to redeem them. Points do not expire as long as your account remains active, but if you close the account, you may lose any unused points.
Interest rates and fees
Store cards typically charge higher interest rates than general credit cards. The exact rate you receive depends on your credit score and credit history — people with excellent credit may receive a lower rate, while those with fair or poor credit will pay more. Sears does not publish a single rate; instead, rates are determined at the time you open the account.
If you carry a balance on the card, you will pay interest on that balance at your card's annual percentage rate (APR). Unlike some promotional financing offers, regular purchases accrue interest when ready if you do not pay the full balance by the due date. There is no grace period for cash advances, and if you take a cash advance, you will pay a fee (usually a percentage of the amount withdrawn) plus interest from the day of the withdrawal.
Annual fees vary. Some versions of the Shop Your Way card have no annual fee, while others may charge one. Check your account terms or call the customer service number on the back of your card to confirm whether you are being charged an annual fee.
Promotional financing offers
Sears frequently offers promotional financing on the Shop Your Way card — for example, no interest for 12 months on purchases over a certain amount, or a discount percentage off your first purchase. These offers are advertised in stores, online, and in mailers to existing cardholders.
Promotional financing comes with strict conditions. If you do not pay off the promotional purchase in full by the end of the promotional period, you will owe interest on the entire original amount, not just the remaining balance. This interest is usually calculated at the card's regular APR and is backdated to the original purchase date. For example, if you buy a $1,000 item with 12 months no interest, and you still owe $100 when the 12 months end, you will owe interest on the full $1,000 from the purchase date, not just the $100 remaining.
Read the fine print on any promotional offer before you make the purchase. The terms will specify the exact end date, the APR that applies if you do not pay in full, and whether the promotion applies to the entire purchase or only to the amount over a certain threshold.
How to open an account and what you will need
You can open a Shop Your Way credit card account online at Sears.com, in a Sears store, or by phone. You will need to provide your Social Security number, date of birth, address, and income information. Sears will check your credit report to decide whether to open the account and what credit limit to offer you.
If you are approved, your card will arrive in the mail within 7 to 10 business days. You can use it when ready online if Sears provides a temporary card number, or you can wait for the physical card to arrive. Once you have the card, you can set up it by calling the number on the back or by logging into your online account.
If you are denied, you have the right to know why. Sears must provide you with the reason for the denial and the name of the credit bureau it used. You can also request a free copy of your credit report from that bureau to check for errors.
When a store card makes sense and when it does not
A store card is worth opening if you shop at that retailer regularly and plan to pay off your balance in full each month. In that case, you benefit from the rewards or promotional discounts without paying interest. If you shop at Sears or Kmart at least a few times a year and take advantage of the promotional financing or bonus point offers, the card can save you money.
A store card is not worth opening if you carry a balance month to month. The higher interest rate means you will pay more in interest charges than you would with a general credit card, and the rewards you earn will not offset that cost. Similarly, if you only shop at the retailer occasionally, the rewards will not add up to much, and you are better off using a general credit card that works everywhere.
If you already have the card and are carrying a balance, focus on paying it down as quickly as possible. The interest charges will grow faster than your rewards will accumulate.
How the Shop Your Way card affects your credit
Opening a new credit card will lower your credit score slightly in the short term because Sears will make a hard inquiry into your credit report and because a new account lowers the average age of your accounts. Over time, if you use the card responsibly — making payments on time and keeping your balance low — your score will recover and may improve.
Your credit utilization ratio (the amount of credit you are using divided by your total credit limit) affects your score. If you charge a large purchase to the card and do not pay it off quickly, your utilization will be high, which can lower your score. Keeping your balance below 30% of your credit limit is generally better for your score.
If you miss a payment, that will show up on your credit report and damage your score significantly. Late payments stay on your report for seven years. Set up automatic payments or calendar reminders to make sure you pay at least the minimum by the due date.
Frequently Asked Questions
Can I use the Shop Your Way card anywhere besides Sears and Kmart?
No. The Shop Your Way card is a store card that works only at Sears and Kmart locations and their websites. If you need a card that works at other retailers, you will need a general-purpose credit card like Visa or Mastercard.
What happens to my points if I close the account?
You may lose any unused points when you close the account. Before closing, redeem your points for a discount or reward. Check your account terms or call customer service to confirm the policy, as it can vary.
Is there a grace period before interest starts on new purchases?
Yes, if you pay your full statement balance by the due date, you will not owe interest on new purchases. However, if you carry a balance, interest accrues on new purchases from the purchase date. Promotional financing offers have their own terms and may not include a grace period.
What should I do if I miss a payment?
Contact Sears when ready. The sooner you pay, the less interest you will owe, and the less damage to your credit score. A single late payment can lower your score by 100 points or more. If you are having trouble making payments, ask about hardship options or payment plans.
How do I check my balance and make a payment?
You can check your balance and make a payment online through your Shop Your Way account at Sears.com, by phone at the number on your statement, or by mail. You can also set up automatic payments so your minimum payment or full balance is paid each month without you having to remember.