Hudsons Bay Mastercard Powered By Neo
Hudsons Bay recently partnered with Neo Financial to offer a new branded credit card after Capital One announced it was ending its relationship with the retailer last year.
The newly-minted Hudsons Bay Mastercard offers up to 4 points per $1 spent in-store and up to 2 points per $1 spent elsewhere.
You can redeem your points at a rate of 1,000 points = $5 when you shop online at thebay.com or in the store.
- Annual fee: $0
- Purchase interest rate: 19.99% to 24.99%
- Cash advance interest rate: 21.99% to 26.99%
Extra Perks: You earn up to 2% cash back Neo partners.
Here Are Some Store Credit Card Disadvantages:
- The debt trap: Your favorite store credit card is not an invitation to overspend. Be careful with exclusive sales events. Your intent might be to save a few bucks on sale items, but oftentimes, the tendency is to spend more, thinking the savings will offset the cost of the additional purchases. The reality is youll likely end up with more debt than youd originally planned.
- Low credit limits: Dont expect to have much spending power with a store credit card, especially if this is your first credit account. With a couple of quick purchases, youll easily end up burning up most of your available credit. That will push your , or debt-to-credit ratio, to an unfavorable level. Try to maintain a ratio of less than 30%. The higher your utilization, the less likely youll be eligible for credit limit increases or additional credit accounts.
- High interest rates: Store credit cards often charge significantly higher interest rates than regular credit cards. The average regular APR for store credit cards was 28% in 2020. If you carry a balance or are overextended on your store credit card, the debt will mount quickly. Interest is calculated daily and starts accruing on the transaction. That interest is compounded, which means if you carry a balance, another wave of interest charges will pile on top of the interest accrued during the previous month.
What Other Types Of Credit Cards Are Easier To Get Approved For
Consumers who want to rebuild their credit should consider getting a secured credit card from a bank or credit union, Muhammad says.
To get a secured card, youll generally need to make a deposit thats equal to the limit you can charge on the card. The initial limit might be low, such as $300. Over time, if you use the card responsibly, you may be upgraded to an unsecured card or get access to a higher credit limit on your secured card.
While theres no such thing as guaranteed approval, Opperman says approval for a secured card is more likely. One reason for this is that the card is secured by the deposited funds.
Popular secured cards for those with a limited credit history include Capital One Platinum Secured Credit Card and Citi® Secured Mastercard®.
Prepaid cards and debit cards, on the other hand, wont help you build up a credit history. Purchases and payments made with these types of cards arent reported to the major credit bureaus that track consumers use of credit and produce credit reports and scores, Huynh explains.
Prepaid cards are more like gift cards, with payment information not recorded or reported to the credit bureaus and thus not helping to build a credit history, he says.
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Cons Of Store Credit Cards
- High APRs: Store cards charge an average APR of 25.90 percent, according to CreditCards.coms 2020 study, so the cost of carrying a balance will quickly outpace your rewards potential.
- Potentially misleading terms: Many 0 interest store offers are actually deferred interest promotions, meaning that if you have any remaining balance at the end of the promotional period, youll be charged retroactive interest on your average daily balance all the way back to the beginning.
- Low credit limits: Store cards often have low credit limits, which can lead to a high and hurt your credit score.
- Limited use: While they reward loyalty, store cards are limiting in that you can only use them at that particular store or chain of stores.
Advantages And Disadvantages Of Store Credit Cards
Store cards are incredibly easy to obtain, and they offer customers deals and discounts. Store credit cards can be handy for customers who use them regularly and who can pay back what they owe every month.
However, there are disadvantages to owning a store credit card. Many people with store credit cards end up paying high rates of interest on the purchases they have made. What’s more, most big box store cards on the market charge over 25% interest, and some charge nearly 30%. These figures reflect high APR amounts, much more than a standard credit card.
Another issue is the illusion of “free money” with a credit card versus cash. While the interest rates are unnecessarily high, the real problem is the accessibility of store cards. You can sign up for a store card at the checkout and start spending there and then,” says James Daley, managing director of Fairer Finance.
Store cards make it easy to buy more things than you may need
You can only use it in one shop or group of shops
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What Credit Card Experts Are Saying
Stefanie OConnell, millennial money expert, stefanieoconnell.comFavorite retail card: Amazon Prime Rewards Visa Signature cardAs a big city dweller, the Amazon Prime Rewards Visa Signature is the clear winner for me. Prime delivery is a major convenience, as opposed to big box purchases that require a car to transport and space to store, neither of which is practical in many major cities.
Rebecca Lake, personal finance writer, CreditCards.com and US News & World ReportFavorite retail card: Amazon Prime Rewards Visa Signature cardThe Amazon Prime Rewards Visa Signature card combines a generous rewards rate on Amazon.com purchases with the ability to earn a competitive rewards rate on everyday spending.
Michelle Schroeder-Gardner, personal finance blogger, Making Sense of CentsFavorite retail card: Sams Club MastercardThe Sams Club Mastercard wins my vote in this round. With a $0 annual fee , along with 5 percent cash back on gas, 3 percent cash back on dining and travel and 1 percent on everything else, this credit card easily wins in my book!
Matt Schulz, chief industry analyst at CompareCards.comFavorite retail card: Costco Anywhere Visa cardThe Costco card not only gives members discounts when they buy from Costco, but it also gives really good cash back returns in other places. Four percent back on gas and 3 percent on travel and dining makes this card really competitive with other cards out there and gives it the slightest edge over the Amazon card.
Triangle World Elite Mastercard
This Canadian Tire Credit card is my go-to for earning Canadian Tire Money. It allows you to collect 4% in CT Money at Canadian Tire, Sport Chek, Marks, Atmosphere, Party City, Hockey Experts, and a few other stores.
On grocery purchases , you earn 3% in CT Money, and gas purchases at Gas+ and some Husky stations earn at $0.05 to $0.07 per litre.
You can easily redeem your CT Money to pay for purchases at Canadian Tire and participating stores.
- Annual fee: $0
- Minimum income required: $80,000 personal or $150,000 household
- Purchase interest rate: 19.99%
- Cash advance interest rate: 22.99%
Extra Perks: This card offers a free roadside assistance plan, rental car insurance, and extended warranty. You can also finance purchases of $150 or more with no fees or interest financing for up to 24 months.
Cons: This card has a high-income requirement. Alternatively, you can opt for the Triangle Mastercard which has no specified income requirement. Also, you can only redeem your CT Money for purchases at participating stores.
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Can They Be Beat At Their Own Game
The number one rule is not to go anywhere near store cards unless you are certain that you will pay the balance in full each month. And never be seduced into buying something just for the sake of getting a discount.
If you are confident you can do both of these things, you could consider taking advantage of store card perks. Many store cards offer a discount for signing up, such as 20% off the first time you spend on it. Dont simply spend it all on a small purchase. Sit tight until theres something expensive in the store that you need to buy, thus maximizing the discount.
If there are exclusive cardholder events and offers, you can keep the card to secure an invitation. Many store cards have special evenings and offers, a bit like a membership club. Theres nothing wrong with keeping a store card just for this.
What Retail Card Is Easy To Get
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Are Store Cards Good For Building Credit
When it comes to building credit, the same general caveat applies to store card as to any other credit card, in that store cards can be good tools for building credit so long as you use them responsibly.
Store credit cards are credit lines like any other credit card, and, as such, payment history and utilization should be reported to the three major credit bureaus like any other credit line. So, store cards can typically be used to establish your credit profile and to build your credit history provided you use them regularly.
The main things to look out for with store cards and all credit cards, really is the high APRs. Many store credit cards will charge interest rates in the 25%-plus range, which is similar to subprime credit cards and can be very expensive, very quickly.
Ideally, you should never carry a balance on a store credit card, with the possible exception of cards that offer special financing. That said, even the special financing deals can have issuers .
Of course, this can be a challenge with any credit card but particularly with store cards. Thats because those handy rewards and discounts can actually cause you to spend more than you intended to spend. Moreover, just having a store credit card can motivate you to shop more, so try to only use your store cards when you have specific purchases in mind.
The Best Store Credit Cards In Canada 2022
By Courtney Reilly-Larke on April 22, 2022
If shopping is your hobby, or you want discounts on everythingfrom groceries to a new carcheck out this list of the best store credit cards in Canada.
Creatures of habit, rejoice! Your loyal shopping behaviours may just pay off, big time. If you shop regularly at certain retailers, using a store credit card can help you to earn discounts, free goods and exclusive perks by swiping or tapping for everyday purchases. Spending with a store credit card can even give you VIP access to sales. And if you already collect loyalty points, theyll likely accumulate even quicker with a store credit card. Considering that these cards typically have no annual fee, the reasons to switch are racking up quicker than your latte charges. Read on to see which are the best store credit cards in Canada for making your daily spending work for you.
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Lowes Advantage Credit Card
Lowes Advantage cardholders get automatic discounts on Lowes purchases and a 20% sign-up bonus with their first purchase. Cardholders can also choose between 5% discounts on Lowes purchases, or deferred-interest financing options on existing purchases.
Special financing options also qualify the Lowes Advantage Credit Card as a strong store credit card option.
Six-month, 12-month, and 84-month financing packages on eligible purchases above certain spend thresholds allow customers to pay off Lowes purchases at a comfortable pace, while leveraging steep discounts to achieve yearly rewards that average $178.
- Rewards rate:5% off Lowes transactions.
How To Use Your Store Card Responsibly
Having a store card can make it tempting to spend even more at your favorite stores, but responsible use can help you save money and be good for your credit. Once you have a store card, here are a few things you should try to incorporate into your financial routine:
- Keep track of the fees. Store cards may charge a variety of fees, including annual, cash advance and foreign transaction fees. Know which fees your card charges and learn how to avoid them, when possible.
- Track your credit utilization. Maintaining a low utilization ratio on store cards can be especially difficult when the card has a low credit limit. Make a point of limiting how often you use the card or paying down the balance early to keep your utilization ratio low.
- Pay your balance in full. To avoid interest, it’s best to only charge what you can afford to pay off in full by the bill’s due date. If you think you may occasionally carry a balance, make sure you understand how much interest you’ll pay.
- Continue comparison shopping. While store cards may offer rewards on purchases at the associated store, don’t assume that means you’re always getting a good deal. Buying a product for $100 and earning 5% cash back is still worse than getting the same item for $90 elsewhere.
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How Do Credit Card Approvals Work
The process generally begins with an online application that will request your personal, contact, and financial information. Before you begin with this, figure out where you stand by checking your own credit report.
To determine eligibility, issuers look at numerous factors found in your credit report, including:
- Delinquencies or late payments
Walmart Rewards World Mastercard
If you love a good deal, youre probably no stranger to the aisles of Walmart. Heres how the Walmart Rewards World Mastercard can make those dollars go further for you.
- Annual fee: $0
Interest rates: purchases 19.89%, cash advance 22.97%
- Earn rate: earn 3% at Walmart.ca, 1.25% in-store in Canada, 1.25% at gas stations, 1% everywhere else
- Welcome offer: Earn a total of $25, including $15 welcome bonus and an additional $10 when you sign up for paperless statements
- Income requirement: $100,000 household
Youll earn a hefty 3% when shopping online at Walmart.ca and 1.25% when shopping in-store at their brick-and-mortar locations. Youll also get 1.25% when you fill up at any gas station . Youll also earn 1% on purchases anywhere else.
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Cards For Bad Credit From Online Stores
Consumers spent more than $517 billion shopping online in 2018, a figure expected to keep growing. Online shopping has become a normal, everyday activity for millions of Americans, to the point that we now have a slew of companies from banks to major retailers that operate almost entirely online.
If youre looking to build credit while shopping at your favorite online retailer, a store credit card may do the trick. While several online-only retailers offer store credit cards, only a few accept bad-credit applicants.
Once a home catalog company, Fingerhut is now a large online retailer that specializes in offering closed-loop credit lines to shoppers with poor credit. Fingerhut.com has thousands of items from hundreds of popular brands like Samsung and KitchenAid. Applicants who dont qualify for a WebBank/Fingerhut Advantage Credit Account will be automatically evaluated for a WebBank/Fingerhut FreshStart Installment Loan .
The is most useful for cardholders who are also Prime members, as theyll get 5% back on Amazon.com purchases. Some applicants may be offered a secured version of this card.
- Cardholders who are also Amazon Prime members earn 5% cash back on Amazon.com purchases
- Receive special financing on purchases over $149
- Pay $0 annual card fee Prime fee may apply
What’s Considered A Bad Credit Score
There are different types of credit scores, but the scoring model lenders typically use when deciding whether or not to extend credit to someone is the FICO® Score. Your FICO® Score can range from 300 to 850, and anything from 300 to 579 is considered poor credit. If your score is between 580 or 669, thats considered fair credit.
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Retail Store Cards Limit You To Buying Products Often Priced Higher Than At Other Stores
Stoneberry and Fingerhut both advertise their credit for those with bad credit or no credit. Anytime you see such a disclaimer in an ad, you can bet that the interest rates on any approved account will be sky-high. To get an idea of how these online retailers and their credit cards work, see our post that reviews such claims by Fingerhut.
Prices at these sites can be particularly shocking. As noted in our Fingerhut post in 2021, the Fingerhut sales price of a TV was still 33% more than the regular price of the exact same TV at Target.
Because these sites focus their marketing on monthly payments, they can avoid the uncomfortable conversations around their high-interest rates and their high retail prices.
Consequently, even though easy to qualify for, you should think twice, three times, or more about starting your credit-building activities here.