Retail Store Credit Cards

Caution, shoppers!  Retail store credit cards, just like regular credit cards, can lead to a giant, sticky financial mess.  But if you can carefully evaluate your options and take into account your shopping preferences and the level of benefits offered, you can save.  I don’t have the resources to provide a thorough analysis of all store credit cards offered and the pluses and minuses of each (though a Google search will yield great results), but I can walk through my own store card history to offer some insights.

Past

Over the years, I’ve had a number of store credit cards.  My first two were Express and Victoria’s Secret.  I don’t regret opening either; I was probably 18 when I opened both of them and they helped me build my credit score, which is very important!  My parents raised me to be responsible with my money, so I only ever bought what I could afford and paid my bill in full and on time.

My tastes have changed, of course, and I don’t have either card anymore.  I haven’t shopped at Express for years, so that was the first to go.  For those of you that haven’t read up on your credit 411, cards will automatically shut themselves down if they go unused for a few years.  Click here for more tips on how to maintain a good credit score.  Your best bet is to cut up the card, monitor the account to avoid fraudulent use, and wait.  Unfortunately, it actually costs you points on your credit report to call and close them, so if you can wait, do it.  As for the Victoria’s Secret card – yes, I do buy underthings – but I don’t shop the store’s catalog extensively, as some of my friends do, and didn’t see the point, so I put that card away years ago as well to close on its own.

Present

Currently, I have two store credit cards – Bloomingdale’s and Old Navy.  I know, they see to be on pretty opposite ends of the spectrum, but both offer amazing benefits and I use them all the time!

I opened my Bloomingdale’s card during the summer of 2006, on a trip to New York City, while I was still an undergraduate student in Boston.  I was at the 59^th Street flagship location with a friend in the Marc Jacobs designer handbag shop.  Bloomingdale’s always offers 10% off your purchases for the day that you open your card; but, during certain sales, they offer up to 15% or even 20%!  I spotted this awesomely enormous, luggage brown bag that was marked down.  With my new card discount, I paid just over $400 – a steal for a $1,000+ designer bag.  This bag has been a staple for my wardrobe, and the credit card has been a staple for my shopping!

Bloomingdale’s cardholders receive a number of great benefits:
*Free shipping on online orders of $150 or more, all the time
*Additional discounts during "Private Sale," for cardholders only
*A point system with rewards certificates that can be used like cash
*Membership in the "Shoe Club" with 25% off a full-priced pair of shoes for every five pairs that you buy
*Advanced access to sale items through "pre-sale"
*And more!

-        

I opened my Old Navy card two years ago.  I had used a friend’s card before (thanks, C!) and already knew how great the discounts and rewards were.  Sometimes I really wonder how Old Navy makes any money because their products are so inexpensive to begin with and my card offers additional discounts!  Old Navy also has a reward points program, and I love redeeming the $10 certificates that I receive in the mail.  Also, twice a year the "Stuff and Save" sale offers cardholders 30% off the entire store! 

Another great benefit is that I can use my Old Navy card at Gap, Banana Republic and Piperlime.com as well, since they are the same company.  Every Tuesday, I can receive an additional 10% off purchases at any of the four stores!

Future

My tastes and shopping preferences will surely change as they have so far, so down the road I will likely open new accounts or close the ones I have.  No matter what, I will always keep in check the number of total accounts I have open and only ever go for ones that provide top notch benefits!