Understanding the Difference between Credit Card and Store Credit Card

Yardney John July 23, 2016 Comments Off on Understanding the Difference between Credit Card and Store Credit Card
Understanding the Difference between Credit Card and Store Credit Card

You must have encountered the question whether you would like to save 10% on your purchase by filling out an application for store credit card. The cashier at the counter of your favourite clothing or accessory shop would often deliver this line with a captivating smile. The idea of credit cards came up with store cards. Merchants have been known to extend credit to good customers, whom they could count on to pay for their purchases made over time.

Difference between store card and credit card

In the present times, general-purpose credit cards have been derived from that original idea. Store cards presently have been a specific subset of credit card with some significant differences along with restrictions. The major difference lies in the advantages offered by both these respective cards. The benefit of store credit cards would be different from that of credit card.

Where they could be used

Credit cards have been accepted at several different merchants, inclusive of shops, airlines, travel agencies and several service shops. This would cater you with the freedom to shop at the lowest price that you could find at several different merchants.

Store cards have been only accepted at one specific merchant. Although they have been mostly welcome at any branch store run by the merchant, you would be confined to the selection of products that would be carried by that merchant along with the prices offered by that merchant.

Difference in APR on purchases made

Credit cards mostly carry a relatively lower APR on purchases made than store credit cards. Store cards usually offer starting rates as high as 29% APR. It has been often the highest rate on a general use of credit card, which has been reserved for those who have built up penalties for late payments.

Receiving cash back percentage

Cash back credit cards would give you a percentage of your cash back every time you use them. Few cash back credit cards would offer a higher percentage when you make use of them at the shops of member merchants, but the card could still be used at any shop accepting the imprint on the card. On the other hand, store credit cards rarely give cash back. Moreover, they cannot be used in any other store.

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Point rewarding system

Reward credit cards have been known to operate similarly to cash back credit cards. However, instead of giving you cash back on your purchases that would amount to a discount on the price, they would reward you with points. These points could be used for purchasing other merchandise. Usually, you cannot shop at regular merchants with your accumulated reward points. Rather, you could redeem them from the credit card company for products that has been offered by their reward partners. The credit cards could be used anywhere that accepts credit cards.

Mostly, cash back credit cards and reward credit cards would offer far more value than store cards. Moreover, among the credit cards, several differences would make one card a good option for you than another. In case, you have been considering a cash back credit card, you should take the time and compare credit cards to lay your hands on the best.

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Author Bio  Willie DeJarnette has comprehensive knowledge on various areas in the financial arena. His in-depth knowledge and keen eye for bargain has compelled him to write various articles and blogs for his readers to benefit.

 

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