Despite potential drawbacks — high interest rates among them — many consumers might benefit by using retailer cards from a store where they shop most. The key is paying off the card balance every month.
Here’s a sampling of lucrative retailer-branded credit cards to fit a variety of shopping tastes.
Target:
Target isn’t accepting applications for its Visa credit card, but if you shop at Target often, especially if you buy food and clothing there, it could be worth getting its store- only “REDcard.” You’ll get a straight 5 percent off on all purchases, including at the pharmacy. Target’s debit card reaps the same benefits, but it can’t be used at the retailer’s website.
Lowe’s:
The home-improvement store’s Lowe’s Consumer Credit Card also gives back a generous 5 percent. It has no fee, but its interest rate is very high, at 24.99 percent for new accounts. It is also a Lowe’s-only card.
Costco:
The warehouse club’s True Earnings American Express card gives 3 percent cash back on gasoline purchases up to $3,000 a year, then 1 percent after that. You also get 3 percent cash back at restaurants, 2 percent on travel and 1 percent everywhere else, including Costco.
:
This online-only department store’s Visa card gives 3 percent back on purchases; 2 percent at gas stations, restaurants and drugstores; and 1 percent on everything else. Gregory Karp, The Chicago Tribune
