Let's Talk About Store Credit Cards

So, you've had that experience in the store where the cashier offers you to apply for the store credit card and you can save $20 immediately or get 25% off your first purchase, right? Of course you've had that experience. Everyone has. Your instinct is to say "Sure, why not?". But what you should say is "No, thank you. I like credit cards that provide real value". Obviously, don't say that, be nice about, but still say no.

Here are some of the worst store credit cards that exist and why they are so bad:

Gamestop Credit Card

• With this card, you earn 5,000-15,000 points after your first purchase, which is equivalent to about $15 max. The points are worth 1/10th of one cent. For comparison, Chase Sapphire Reserve points are worth 15x more at 1.5 cents per point.
• It is also has a 28.49% interest rate. Please do not pay interest on Gamestop purchases. The interest rate is ridiculously high.

Kroger Credit Card

• With Kroger's card, you earn 3x points on Kroger Brand products, 2x on other Kroger purchases, and 1x on everything else. This sounds pretty decent until I tell you that the points are worth half a cent each. Even worse, you receive the value of the points in the form of store credit. So sad...

You're starting to see a theme here, right?

American Eagle Credit Card

• American Eagle does a better job at masking the little value that they provide to their customers.
• The first perk is 10% off your first purchase. Ok that's nice.
• For all future purchases at American Eagle, you earn 15 points per dollar. Wow, seems like a lot! But you can redeem your points only when you reach 2500 points, which works out to be $167 spent. For all that money, you earn $10 off, or 0.6% in rewards. Now that's anti-climatic.

I could compile a larger list of store credit cards that provide close to no value, but I'd midway through my life by the time I finish the list. Instead, I'll leave you with closing wisdom on how to approach store credit cards.

In general, I'd avoid getting any store credit cards at all. First, they limit you to spending at a specific place, which can make it hard to rack up points unless you religiously shop at a certain place. Second, the rewards are so minimal, it is not worth your time to try to squeeze value out of these cards. They were not designed to give customers value. They were designed to stockpile even more customer information and keep you in the brand ecosystem. Store credit cards are a one-way relationship and unfortunately it's not the customer who is reaping value.

Take this life advice - Drink water, stay in school, and say "No!" to horrible store credit cards.

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