What is the difference between a store card and a credit card?

A credit card is a piece of plastic that represents your credit line with a bank or financial institution and allows you to make purchases and pay them later. A credit card is one way of borrowing or loaning money for goods or services. The bank or company that issued you the credit card pays off your debt with the vendor or store and you pay off the issuing bank or company. The issuing bank or company sends you a monthly billing statement detailing all transactions or purchases you made with the credit card within a cut-off period. The monthly billing statement also indicates your total balance and the minimum payment you have to make before the due date. Credit cards are generally widely accepted at many stores and countries.

Store cards are just like credit cards but can only be used for a specific store or group of stores. Store cards can have initial discount offers for new members and these initial offerings can be beneficial to many customers. Store cards are not like loyalty cards that help you rack up points and rewards. Store cards also offer members-only benefits to store card holders. Store cards in general have a higher interest rate than most major credit cards like Mastercard and Visa, so it’s vital that store card holders are aware of the interest rates and charges included in using a store card. Just like credit cards, store cards won’t become a problem if store card holders pay off the charges regularly and within the interest-free period.