
Some consumers may find a credit card at a department store a great option. This type of card has its limitations. There are limitations such as no interest financing, cash-back rewards and co-branding. Before applying for a department store credit card, make sure to read the terms and conditions.
Limitations of a department store credit card
A department store credit card offers many advantages to loyal shoppers. You can often get promotional interest rates and big discounts, which make these cards a worthwhile option. A general rewards credit card or low-interest credit card might be better if you don’t plan to make frequent purchases at the same store.
Young consumers might not be aware that these cards have certain limitations. You may not be able to pay for your purchases on time, and your payments will be higher. You may have to pay higher interest rates or fees in some cases. This may be a disadvantage for those who do not have good credit history.

Cash-back Reward
A department store credit is a great way to get valuable rewards on your purchases. These purchases are not as common as other purchases but can add up to hundreds in cash back each year. There are many reward options, including rewards for everyday shopping and special store discounts.
Know your spending habits and make an application for a cashback rewards card. This will help you determine which card is right for you. Different cards offer different categories. Plan your purchases around the rotating categories. In addition, make sure you know the deadlines and eligibility periods for each type of reward.
Interest-free financing
A store credit card helps you to stay within your budget and avoid spending too much. However, you should be aware that high interest rates will quickly rack up if you don't make your payments on time. You can avoid this problem if you pay off your balance by the end of the interest-free term.
Special financing terms are available for store cards that allow you to waive interest for a certain period. The interest-free period (also known as "deferred in interest") applies only to the balances paid within a set period. Retroactive interest will apply after the promotional period expires. In contrast, 0%-APR credit cards for general-purpose purchases typically do not charge retroactive interest.

Limitations on co-branded Cards
Co-branded department store credit cards allow you to shop anywhere the store's name is on the card. These cards, also known to be "open-loop" credit cards, can be issued by companies with partnerships with networks such a MasterCard, Visa, or American Express. These cards can be used at more than one store and have higher credit standards. However, they also have some limitations.
It's a great way reward yourself for all your purchases. Earn points that can be used to receive a discount at your favorite stores. They can even give you significant travel discounts, too. These cobranded cards are subject to some restrictions.