Credit Cards Store Credit Cards

Survey: Retail Credit Cards Carry Balance Risks [2023 Holiday Shopping]

The FinanceBuzz team surveyed shoppers to find out how many people sign up for branded retail credit cards, why they sign up, how those cards impact their shopping, and more.

A credit card is held up to a handheld credit card reader. This appears to be at a store checkout.
Updated Feb. 24, 2025
Fact checked

Retail or store credit cards are a way for retailers to encourage shoppers to spend more money at their stores in exchange for savings and rewards. These cards typically come with higher-than-average interest rates and limitations on rewards earning and redemption. 

So are Americans still signing up for these credit cards, and are they satisfied with their cardholder experience?

To find out more about retail card behavior, our team at FinanceBuzz surveyed 1,000 U.S. adults to see how many people carry a retailer-specific credit card and how they spend their money.

Key findings

  • Almost half (45%) of U.S. consumers have signed up for a store-specific credit card.
  • Store cards increase loyalty: More than half of cardholders report increased spending at the specific retailer after signing up for a store card.
  • On average, consumers say they'd have to be offered $115 in savings in order to sign up for a retail card.
  • The most common reason for signing up for a store credit card is to save money on a big purchase.
  • 1 in 5 cardholders say they're more likely to carry a balance on retail cards vs. other credit cards.
  • 27% of people who've signed up for a store credit card say they regret it.

A pie chart showing percentages of people who say they have or have not signed up for a retail store credit card.

What drives retailer-specific credit card sign-ups?

Nearly half of the population (45% of people) say they have signed up for at least one store-specific retail credit card at some point in their life. Knowing how widespread these kinds of cards are, our team wanted to know which factors and considerations most often motivate shoppers to apply for them.

A bar chart showing percentages of people who say they signed up for a retail credit card for various reasons.

Cost savings at the register is the top motivator people gave for signing up for a retail credit card, with 55% of people citing savings as a major reason behind their decision to apply.

Similar to at-the-register savings, 38% of people said a sign-up bonus was a motivator to open a credit card. An equal number (38%) of respondents said they opened a retail credit card due to retailer loyalty. If you shop at a store often enough, even small savings on each trip can add up.

The last major reason that people sign up for retail credit cards is a need to finance a large purchase. One out of every four retail card users cited this as a motivator.

Fact
On average, U.S. adults say they would need to save $115 on a single purchase to justify signing up for a store-specific credit card.

How retail cards impact spending behavior

The number of people who have signed up for store cards tells only part of the story. How do these cards impact shopping behavior? And how do users feel about the experience of using them?

A pie chart showing percentages of people who say signing up for a retail credit card did or did not lead them to spend more money at the store in question.

A significant portion of shoppers see their store-specific credit card as a reason to shop at that store more often. More than half of consumers with a retail credit card (54%) say they shop at that store more than they did before becoming a cardholder.

Thankfully for those making increased trips to their favorite stores, the majority of retail credit card users feel they have gotten their money's worth. In fact, nearly two-thirds of people with store-specific credit cards (64%) say the rewards and discounts offered by their card(s) were worth opening such a limited line of credit.

A pie chart showing percentage of people who say they do or do not regret signing up for a retail credit card.

But that doesn't mean everyone loves using a retail credit card. In fact, more than a quarter of people who have used these kinds of cards (27%) say they regret signing up for at least one of them in the past.

Negative retail card experiences

While our survey revealed that most shoppers are happy with their retail store card's rewards, these cards have some downsides — namely, high annual percentage rates (APRs).

If a card has a high APR, it can be hard to pay off your full balance quickly. And store cards frequently have higher APRs than traditional credit cards.

A bar chart showing percentages of people who report having experienced various negative experiences associated with retail credit cards.

One-fifth of retail card users report that they were more likely to carry a balance on their store-specific card(s) than they were on their regular credit cards. Additionally, 12% of people said they used their store credit card(s) so infrequently that they would occasionally forget to pay off their balance, which causes a double whammy of late fees on top of high interest rates.

Advice from our experts

Does signing up for retail credit cards at the register ever benefit consumers?


What are some red flags to look out for when considering applying for a retailer-specific credit card?


What are some "green flags" to look out for when considering applying for a retailer-specific credit card?


Is there a higher risk of carrying an unmanageable balance on a retailer-specific credit card than on other cards? Why or why not?


Answers have been edited slightly for brevity and clarity.

Bottom line

A credit card can be a great tool to have in your wallet if you do a bit of research on available offers and how to use a card wisely. Here are some helpful credit card tips to follow:

  • Build credit with a credit card. Retail cards are many shoppers' first introduction to having a credit card. If you have a relatively new credit profile and are in the market for a beginner card, look into some of the best credit cards for no credit.
  • Save on interest. Retail cards often have high APRs, which can make it difficult to keep up with payments. A 0% APR credit card can help you save on interest charges and maintain an on-time payment history if you use it for a big purchase.
  • Start healthy card habits with daily use. Retail card or otherwise, a credit card for your daily essentials can be a great way to develop smart credit card habits. The Chase Freedom Unlimited®, for example, is one of the best credit cards for daily use.
  • Compare cardholder rewards. If you're already a cardholder with popular creditors like American Express or Chase, compare Amex points to Chase points to find the best rewards system for your needs.

Methodology

FinanceBuzz surveyed 1,000 U.S. adults in May, 2023. Only respondents who indicated that they have successfully applied for at least one retail credit card before were asked questions related to signing up for and using these kinds of cards.

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