What the Shop Your Way Sears Credit Card is and who issues it
The Shop Your Way Sears credit card is a store card issued by Citibank that you can use at Sears and Kmart locations, as well as online at Sears.com. Unlike a general-purpose credit card, a store card works only at that retailer and its affiliated stores — you cannot use it at other merchants. Citibank handles the credit decisions, billing, and customer service, while Sears controls the rewards program and store policies.
Store cards typically come with lower credit limits than traditional credit cards and higher interest rates. They are often easier to get if your credit history is limited or damaged, because the issuer's risk is smaller — you can only spend at one place. That lower barrier to approval comes with a trade-off: the card costs more to use if you carry a balance.
Key Takeaways
- The Shop Your Way card earns points on Sears and Kmart purchases that you can redeem for discounts or merchandise, with bonus point offers that change seasonally.
- Interest rates on store cards are usually higher than on general credit cards, so carrying a balance month to month is expensive.
- You can request a credit limit increase after you have made on-time payments for several months, which may help your credit score if the issuer reports it.
- The card reports to the three major credit bureaus, so responsible use can build your credit history, but missed payments will damage it.
- Store cards are useful for building credit or getting a discount on a single large purchase, but not for everyday spending across multiple retailers.
How the Shop Your Way rewards program works
When you use the Shop Your Way Sears credit card, you earn points on your purchases. The exact point rate and bonus offers change throughout the year — Sears runs seasonal promotions offering double or triple points on certain purchase categories or during specific shopping periods. You can check the current offers on Sears.com or by calling the customer service number on the back of your card.
Points accumulate in your Shop Your Way account and you redeem them for discounts on future purchases or merchandise. The redemption value varies — sometimes 100 points equals $5 off, sometimes the ratio is different. Sears also occasionally runs special redemption events where your points are worth more. If you do not use your points within a certain period, they may expire, so check your account regularly to see your balance and any expiration dates.
Interest rates and fees you should know about
Store credit cards typically charge higher interest rates than general-purpose credit cards. The exact rate you receive depends on your credit score and credit history — someone with excellent credit might get a lower rate, while someone rebuilding credit will pay more. Citibank will tell you the rate when you receive your card or when you log into your account online.
If you carry a balance from month to month, interest charges add up quickly. For example, a $500 balance at 24% annual interest costs about $10 per month in interest alone. The card may also charge an annual fee, though many store cards waive this for the first year or do not charge one at all. Check your cardmember agreement or call customer service to confirm what fees explore to your specific card.
Late payment fees and over-limit fees may also explore if you miss a payment or exceed your credit limit. These fees are separate from interest charges and can range from $25 to $40 depending on the violation. The best way to avoid these costs is to set up automatic payments for at least the minimum due each month.
How using this card affects your credit score
The Shop Your Way Sears card reports to Equifax, Experian, and TransUnion — the three major credit bureaus. This means your payment history, credit limit, and balance all show up on your credit report. If you make payments on time and keep your balance low relative to your credit limit, the card can help build your credit score over time.
Conversely, missed payments or high balances will damage your score. A single late payment can lower your score by 50 to 100 points depending on how late it is and what your score was before. Carrying a balance close to your credit limit signals to lenders that you are financially stretched, which also hurts your score. If you are using this card to build credit, the goal is to charge small amounts you can pay off in full each month.
When you first open the card, your score may drop slightly because the issuer runs a hard inquiry and you now have a new account with a low history. This dip is temporary — your score typically recovers within a few months if you make on-time payments.
When a store card makes sense and when it does not
A store card is useful in a few specific situations. If you are rebuilding credit after a missed payment or collections account, a store card is often easier to get than a traditional credit card, and responsible use can help restore your score. If you shop at Sears regularly and the rewards rate is high enough, the points can offset the higher interest rate — but only if you pay the full balance each month. If you are buying a large item and Sears is running a promotional offer like "no interest for 12 months," the card can save you money on that purchase.
A store card does not make sense for everyday spending across multiple retailers, because you can only use it at Sears and Kmart. It also does not make sense if you tend to carry a balance, because the high interest rate will cost you far more than any rewards you earn. If you have access to a general-purpose credit card with a lower interest rate and better rewards, that is almost always the better choice for regular spending.
How to request a credit limit increase
After you have made several months of on-time payments, you can request a credit limit increase from Citibank. You can do this by logging into your account online, calling the customer service number on your card, or visiting a Sears store. The issuer will review your payment history and may run a soft inquiry on your credit report — a soft inquiry does not lower your score.
A higher credit limit can help your credit score if you keep your balance low, because it lowers your credit utilization ratio (the percentage of your available credit you are using). For example, a $500 balance on a $1,000 limit is 50% utilization, but the same $500 balance on a $2,000 limit is only 25% utilization. Lenders view lower utilization as a sign of responsible credit use. However, a higher limit also means more temptation to spend, so only request an increase if you are confident you will not use it.
Frequently Asked Questions
Can I use the Shop Your Way card outside of Sears and Kmart?
No. The Shop Your Way Sears card works only at Sears, Kmart, and Sears.com. It cannot be used at other retailers. If you need a card for general spending, you would need a separate Visa, Mastercard, or American Express card.
What happens to my points if I close the card?
Points typically expire if your account is closed, though policies vary. Before you close the card, log into your Shop Your Way account and redeem any remaining points for a discount. Contact Citibank customer service to confirm the expiration policy for your specific card.
Does the Shop Your Way card have an annual fee?
Many versions of the card do not charge an annual fee, but some do. Check your cardmember agreement or call customer service at the number on the back of your card to confirm whether your account has an annual fee and when it is charged.
How long does it take to build credit with this card?
You will see the card appear on your credit report within one to two months of opening it. Meaningful score improvement typically takes three to six months of on-time payments, depending on your starting score and credit history. The longer you maintain a good payment record, the more your score will improve.
What should I do if I cannot pay my bill?
Contact Citibank customer service as soon as you know you will miss a payment. They may be able to work out a payment plan or temporarily lower your minimum payment. Calling before you miss a payment is better than calling after, because it shows good faith and gives you more options.