These cards are linked with loyalty programs that reward you for shopping at the stores, and they also have normal credit card features such as interest rates and fees that you should check out when comparing the different deals. If you find a store credit card you like the look of you can apply online today.
These cards are linked with loyalty programs that reward you for shopping at the stores. The most popular examples are Coles/Flybuys and Woolworths/Everyday Rewards.
How store credit cards work
Store credit cards are branded and linked to specific retailers but issued by banks and processed on major payment networks like Visa or Mastercard. Key features include:
- Rewards programs where cardholders earn points on purchases, often with bonus points for spending at the linked retailer or partners. Points are typically redeemed for store gift cards, products, discounts or special offers. Some provide cashback instead of points.
- Interest rates and annual fees tend to be relatively high compared to other credit cards. Promotions like 0% intro purchase APRs are sometimes offered.
- Beyond rewards, benefits may include purchase protection, insurance, and cardholder-exclusive offers. More perks usually mean higher annual fees.
These cards suit frequent shoppers at the linked retailer who can maximize rewards on their typical spending and avoid interest by paying in full. They aren't ideal for those wanting rewards across many retailers, carrying balances, or seeking specific features like balance transfers.
To get the most value, cardholders should use the card often for routine expenses, pay balances in full to avoid interest exceeding rewards, refrain from cash advances, and redeem rewards regularly. Points may have expiration dates or caps.
Ultimately, store credit cards can provide savings for the right type of shopper who chooses a card fitting their normal habits. But spending just to earn rewards is unwise. All activity is reported to credit bureaus like any credit card.
FAQs
Is there an Amazon Australia credit card?
There is no Amazon credit card in Australia yet.
Does a store credit card work anywhere?
Yes. Although linked with a specific store and its rewards program, store credit cards can be used wherever credit cards are accepted.
Can a store credit card debt be transferred to a different credit card?
Yes. You can balance transfer from a store credit card to a balance transfer credit card and get the introductory interest rate.
Do store credit cards go on your credit report?
Yes. Since they are credit cards, your payment history will be reported to the credit bureaus.
