Credit Cards

Retail Credit Cards For Bad Credit

Retail Credit Cards For Bad Credit

Do you have bad credit but still desire the benefits and convenience of a credit card? Don't worry, retail credit cards could be your answer! Retail credit cards cater specifically to your shopping needs and can help you rebuild your credit score. In this comprehensive guide, we'll explore the world of retail credit cards for bad credit and help you make an informed decision regarding which card to choose.

What are Retail Credit Cards?

Retail credit cards are store-branded cards, usually associated with a specific retailer or chain of stores. They often offer discounts, rewards, and promotional offers to cardholders, which can make them attractive to shoppers who frequently patronize those particular retailers.

Pros and Cons of Retail Credit Cards for Bad Credit


  • Approval odds are relatively high even with a low credit score, making them more accessible for those with imperfect credit histories.
  • Store-specific rewards and discounts give regular shoppers additional reasons to use the card and save money on purchases.
  • Responsible use of a retail credit card can help rebuild credit, as long as the issuer reports to the major credit bureaus.


  • Retail credit cards may have higher interest rates compared to regular credit cards. It's essential to pay off the balance every month to minimize interest charges.
  • The credit limits are usually lower, which can limit your purchasing power and make it easier to max out your card.
  • These cards typically have limited usability since they can only be used at the issuing store, meaning you would still need another credit card for other purchases.

Key Factors to Consider When Selecting a Retail Card

  • Interest Rate: As mentioned, retail credit cards may have high-interest rates. Make sure you understand the APR (annual percentage rate) associated with the card before signing up.
  • Credit Reporting: Ensure the chosen credit card reports to the major credit bureaus so that your responsible usage can result in an improved credit score.
  • Rewards and Discounts: Look for a card offering rewards and discounts that you can benefit from regularly, so the card earns its keep in your wallet.
  • Fees: Many retail credit cards come with annual fees or other charges, so review the card's terms before committing.

Retail Credit Card Options for Bad Credit

Here are a few popular retail credit cards to consider if you have bad credit:

  1. Capital One Walmart Rewards Card: This card offers various benefits like 5% cashback for online Walmart purchases, 2% at Walmart stores and fuel stations, and 1% on all other eligible purchases. There's no annual fee, and it reports to all three major credit bureaus.
  2. Target RedCard: With no annual fee, this card offers a 5% discount on all eligible Target purchases and free shipping on most items from their website. It also comes with a 30-day extended return policy.
  3. Fingerhut Credit Account: This is an online shopping credit account that extends credit even to those with poor credit scores. Fingerhut reports your credit utilization and payment history to all three major credit bureaus, which is crucial in rebuilding credit.

Retail Credit Cards For Bad Credit Example:

John has poor credit due to past financial hiccups. He regularly shops at Walmart and Target for his household needs, so he decides to apply for the Capital One Walmart Rewards Card and the Target RedCard. By using these cards responsibly and paying off the balance in full every month, John starts to see improvements in his credit score within a year. He now enjoys discounts on his purchases while simultaneously rebuilding his credit.

Don't let bad credit hold you back from enjoying the benefits of a credit card. Take control of your financial future by responsibly using retail credit cards specifically tailored to your needs. Consider the options discussed in this guide and keep an eye on interest rates, fees, and credit reporting when selecting the best card for you. Don't forget to share this helpful article with your friends and family, and explore more Flik Eco guides to further improve your financial literacy.


About Jermaine Hagan (The Plantsman)

Jermaine Hagan, also known as The Plantsman is the Founder of Flik Eco. Jermaine is the perfect hybrid of personal finance expert and nemophilist. On a mission to make personal finance simple and accessible, Jermaine uses his inside knowledge to help the average Joe, Kwame or Sarah to improve their lives. Before founding Flik Eco, Jermaine managed teams across several large financial companies, including Equifax, Admiral Plc, New Wave Capital & HSBC. He has been featured in several large publications including BBC, The Guardian & The Times.

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