Retail and Store Credit Cards
Retail cards are those you can apply for from a retail store or gas station, such as Banana Republic, Nordstrom, Pottery Barn, Target or Shell. As far as qualifying criteria goes, it’s not nearly as stringent as major credit cards, and they seldom charge an annual fee.
Advantages:
- Easy to qualify
- Some cards offer special sales and offers to their card holders
- Good stepping stone to building credit history
- Low credit limits so you don’t overspend
Disadvantages:
- Some store cards have very high interest rates, up to twice as high as the interest rate for a traditional credit card
- Opening several store cards in a short period of time will lower your credit score