Are Credit Cards Better Than Store Cards?

There are store cards and credit cards available to us and it can be a bit confusing knowing what the differences are and which might be the best for us to take out.

Who Issues Them

A store card is issued by a specific store. It will be overseen for them by a bank, but it will be the store that you have to apply to if you want a card. With a credit card you will have to apply directly to a blank or building society to get one. This will mean that you will have a choice either between different banks and building societies or different shops. It is an important choice to make because there will be differences between them.

Where you Can Use Them

If you have a credit card, you will find that you will be bale to use them in most places that accept credit cards. There are a few types of credit cards, such as American Express which is not accepted everywhere, but most of them will be. With a store card you will only be able to use it in the store that the card was issued from and perhaps any other stores that are also owned by the same company. This means that you will need to think about what you are going to be using the card for. If you only intend to use it in one particular place, then a store card could work out well for you. So if you want more flexibility then it can be a good idea to get a credit card rather than a store card.


Costs will vary between cards. The interest rates will be different and it will be wise to compare them. They will also change once you get the card and so it is a good idea to make sure that you keep up with this so that if you are paying interest on the card, you make sure that you are not paying more than necessary for the interest.


When you have a store card you might get benefits such as discounts in the store. This can be very useful if you shop in the stall a lot. However, you could find that you will also be able to get rewards with some credit cards as well. You will therefore need to compare the cards to find out whether you will be better off using a store card and using the benefits it gives you in the shop that it is associate with or whether you would rather a reward credit card which could give you cashback or air miles or things like this.

So, it ends up being quite a personal decision. Whether you want a store card that you can only spend in one place or a credit card with more flexibility. You will need to compare the costs and rewards when deciding. Some people will have both so that they can enjoy the advantages of both. While this can be a good idea, it does mean that you will have the opportunity to get into a lot more debt. You will need to think about the risks of this and whether you feel that you are willing to take this risk or whether you think that it would be better if you just got one card. You will know whether you are likely to be sensible with a card or whether you should just take out one as there is a risk that you could spend more than you can afford. iN fact, you may even decide that perhaps you should not take out a card at all.