Most personal finance sites will tell you store credit cards are terrible deals. High interest rates, limited acceptance, pushy sales tactics at checkout – what's not to hate?
But here's the thing: some store credit cards can actually supercharge your travel rewards strategy. The key is knowing which ones complement your points earning goals and which are just wallet clutter waiting to happen.
After analyzing dozens of store cards through the lens of travel rewards optimization, I've found several that not only pay for themselves but can actually accelerate your path to free flights and hotel stays.
Quick Verdict: The Only Store Cards Worth Considering
The Bottom Line: Most store cards are bad deals, but three categories make sense for points enthusiasts:
- Amazon Prime Visa: 5% back at Amazon and Whole Foods if you're already paying for Prime
- Costco Anywhere Visa: Excellent gas rewards and travel earning potential
- Target Circle Card: 5% off everything at Target, no complicated redemptions
Skip everything else unless you're spending $3,000+ annually at a specific retailer.
Why Most Store Cards Are Points Strategy Killers
Before we dive into the good ones, let's talk about why most store credit cards work against your travel goals:
Closed-Loop Limitations: Cards you can only use at one store don't help you meet minimum spending requirements on new travel cards – your biggest opportunity for bonus points.
Poor Earning Rates: That 1% back at department stores? You're better off using a Citi Double Cash Card for 2% everywhere or rotating category cards when they align.
Wasted Credit Inquiries: Every store card application is a hard pull that could've gone toward a card with a 60,000+ point sign-up bonus.
Opportunity Cost: Time spent managing multiple store relationships could be better spent maximizing Chase Ultimate Rewards or other transferable point programs.
The Three Store Cards That Actually Make Sense
Amazon Prime Visa: The E-commerce Powerhouse
Why It Works for Points Enthusiasts: If you're already paying $139 annually for Amazon Prime (and most frequent travelers are), the Prime Visa becomes a no-brainer secondary card.
Key Benefits:
- 5% back at Amazon and Whole Foods with no spending caps
- 2% back at gas stations and restaurants
- Metal card that works anywhere Visa is accepted
- No annual fee (Prime membership required)
Strategic Use Cases:
- Stock up on travel essentials (luggage, electronics, toiletries) at 5% back
- Manufactured spending opportunities through Amazon gift card purchases
- Everyday spending that doesn't fit your primary travel card's bonus categories
Real Example: Last year, I earned $340 back on Amazon purchases alone – more than enough to offset a domestic flight or hotel night. When Whole Foods has those 10% off sales, you're looking at 15% total savings.
When to Use Each Card: For Amazon and Whole Foods purchases, the Prime Visa's 5% back crushes the Chase Sapphire Preferred's 1x points. But for travel bookings and dining, flip back to the Sapphire Preferred – its 2x and 3x earning rates translate to 2.5-3.75% value when you transfer to airline partners.
Costco Anywhere Visa: The Gas Station MVP
The Costco Anywhere Visa is technically a store card, but it's really a travel rewards card in disguise.
Why It's Different:
- 4% back on gas (up to $7,000 annually) – that's $280 in annual rewards just from gas
- 3% back on travel and restaurants – competitive with dedicated travel cards
- Works anywhere Visa is accepted – no closed-loop restrictions
- No foreign transaction fees – perfect for international travel
The Costco Strategy: Even if you only use Costco for gas and the occasional bulk purchase, this card pays for the $65 membership and generates significant cash back for travel.
Business Version: The Costco Business Visa offers identical rewards with business expense tracking – perfect for entrepreneurs.
Annual Redemption Quirk: Rewards come once yearly in February as a certificate. It's annoying, but forces you to save up for larger travel purchases or cash out in $300+ chunks.
Target Circle Card: The Simplicity Play
Why It Works: The Target Circle Card isn't about points or miles – it's about immediate 5% savings on everything you buy at Target, from groceries to gift cards.
Strategic Applications:
- Gift card arbitrage: Buy restaurant gift cards at 5% off, then use dining-focused credit cards when you actually dine
- Travel supplies: Luggage, travel-sized toiletries, electronics at a guaranteed discount
- Everyday essentials: Reduce your baseline spending to free up more budget for travel
The Math: If you spend $2,000 annually at Target (groceries, household items, gifts), you're saving $100 – equivalent to earning 5% on a category most travel cards ignore.
Store Cards That Seem Good But Aren't
Lowe's and Home Depot Cards
The Pitch: 5% off home improvement purchases, special financing options.
The Reality: Unless you're renovating rental properties or flipping houses, these cards sit unused 11 months a year. Better to use a Citi Strata Premier with transfer partners for occasional home purchases.
Department Store Cards (Macy's, Nordstrom, etc.)
The Problem: Closed-loop cards with mediocre rewards that don't transfer to travel programs. Even their "travel" redemptions are typically poor value compared to dedicated travel cards.
Gas Station Cards
Skip These: Cards like Shell or BP typically offer 5-10 cents per gallon savings – decent, but not better than the 4% back you get from the Costco card or rotating category bonuses from cards like the Chase Freedom Flex.
How to Integrate Store Cards Into Your Points Strategy
The Hierarchy Approach
- Primary Travel Card: Chase Sapphire Preferred, American Express Gold, or similar for dining, travel, and sign-up bonuses
- Flat-Rate Backup: Citi Double Cash for 2% on everything else
- Store Cards: Only for retailers where you spend $1,000+ annually and the rewards beat your backup card
Monthly Optimization Strategy
Week 1-3: Use your primary travel cards for bonus categories and minimum spending requirements.
Week 4: Review upcoming purchases and check if any store cards offer better rates. Amazon delivery arriving? Switch to Prime Visa. Costco run planned? Grab the Costco card.
Monthly Review: Check if you're meeting minimum spend on new cards before optimizing for store card rewards.
The Credit Score Reality Check
Each Application Matters: Store cards typically require 650+ credit scores and add hard inquiries to your report.
Timing Strategy: Apply for store cards only when you're not planning any major credit card applications for 3-6 months. Building business credit separately can help manage this.
Account Management: Keep store cards active with small monthly purchases, but don't let them push you into higher spending just for rewards.
Advanced Store Card Strategies
The Manufactured Spending Connection
Some store cards offer opportunities for manufactured spending – purchasing gift cards or money orders to meet minimum spending requirements. The Amazon Prime Visa's 5% at Amazon makes it particularly useful for this strategy, though always follow issuer terms and conditions.
Business Applications
If you have a legitimate business, many store cards offer business versions with higher credit limits and expense tracking. The Costco Business card and business versions of Amazon cards can help separate business and personal expenses while maintaining the same reward rates.
Stack with Portal Rewards
Don't forget to check shopping portals even when using store cards. Some combinations can yield 6-8% total returns:
- Amazon Prime Visa (5%) + Chase shopping portal (1-2%) = 6-7% total
- Target Circle Card (5%) + Rakuten portal (1%) = 6% total
When to Close Store Cards
Close Immediately If:
- Annual fee isn't justified by your spending
- You haven't used it in 12+ months
- It's tempting you to overspend
- You need to clean up your credit report for mortgage/loan applications
Keep Open If:
- No annual fee and occasional use
- Long credit history (helps credit score)
- Emergency backup for that specific retailer
Common Store Card Mistakes to Avoid
Mistake #1: Signing Up at Checkout for Small Discounts
That 10% off your first purchase rarely justifies a hard credit pull and another card to manage. Calculate the actual dollar savings – usually $10-30 – versus the opportunity cost of your credit inquiry.
Mistake #2: Carrying Balances for "Points"
Store cards typically have 25%+ APR rates. No rewards program beats paying 25% interest. If you can't pay the full balance monthly, stick to 0% intro APR cards for large purchases.
Mistake #3: Using Store Cards for Everything
Even if you love Target, using the Target card at restaurants earns 0%. Use store cards only where they offer the best rewards rate for that specific purchase.
Mistake #4: Ignoring Foreign Transaction Fees
Many store cards charge 3% foreign transaction fees. When traveling internationally, switch to cards with no foreign fees like the Chase Sapphire Preferred or Capital One cards.
Tools and Resources
- Credit Monitoring: Use MyFICO to track how new store card applications affect your credit score
- Spending Analysis: Review bank statements quarterly to identify stores where you spend $1,000+ annually
- Offer Tracking: Set up alerts for limited-time store card bonuses that might justify applications
Store Card FAQ
Q: Do store credit cards help build credit?A: Yes, but so do regular credit cards with better rewards. If building credit is your primary goal, consider a secured credit card or student credit card instead.
Q: Can I use store cards to meet minimum spending requirements?A: Only if they work everywhere (Visa/Mastercard logo). Closed-loop store cards that only work at one retailer won't help you meet minimum spend on travel cards efficiently.
Q: What's the difference between closed-loop and open-loop store cards?A: Closed-loop cards only work at that specific store or brand. Open-loop cards have Visa/Mastercard logos and work anywhere, making them much more versatile.
Q: Should I close store cards I don't use?A: If there's no annual fee, keep them open for credit history and available credit. Just use them occasionally to keep the accounts active.
Q: Do store cards affect my credit score differently than regular cards?A: No, they're treated the same by credit bureaus. The application creates a hard inquiry, and the account contributes to your credit mix and utilization ratios.
Q: Can I upgrade store cards to better versions?A: Sometimes. Amazon offers upgrades from store cards to the Prime Visa, and some department stores offer upgraded versions with better rewards or Visa/Mastercard acceptance.
The Bottom Line: Less is More
Most store credit cards are designed to increase your spending at that retailer, not optimize your overall rewards strategy. The three cards I recommend – Amazon Prime Visa, Costco Anywhere Visa, and Target Circle Card – work because they either replace spending you're already doing or offer rates so high they justify shifting purchases.
My recommendation: Start with one store card where you already spend significant money. Use it for 3-6 months and track whether it actually increases your total rewards or just complicates your wallet. If it's working, consider a second one. If not, close it and focus on maximizing transferable point programs instead.
The goal isn't to have every possible store card – it's to have the ones that meaningfully accelerate your path to free travel. Choose wisely, and store cards can be valuable tools in your points strategy arsenal.
