Should You Open a Store Card This Black Friday or Cyber Monday?

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As you go about your Black Friday and Cyber Monday shopping, you might be drawn to store cards. These credit cards frequently come with enticing offers and immediate discounts, which can be tempting if you’re looking to save on your purchases.

After all, a recent National Retail Federation holiday survey found consumers plan to spend an average of $890.49 per person this year on holiday gifts, food and decorations, the second-highest in the survey’s history.

Store cards can save you money in the moment, but they can easily hurt you financially if you’re not responsible. And while you shouldn’t make these types of financial decisions at the checkout counter, it’s worth considering if a store card could work for you, especially if you’re already planning on spending more this season.

CNBC Select takes a look at whether a store card is the right choice for you, as well as some more flexible alternatives.

Store cards, also referred to as retail cards, are very similar to traditional credit cards, but with a few key differences. While standard credit cards can be used at almost any retailer, store cards are typically categorized as “closed-loop” or “open-loop.” Closed-loop means they can only be used at the partnered store, while open-loop can be used outside the specific store as well. This can be limiting, but store cards often offer strong rewards and perks when shopping at the retailer.

Additionally, store credit cards generally have higher-than-average interest rates compared to traditional credit cards. They can also be easier to get approved for. Although these cards can be used to build credit, you’ll need to be extra careful to pay on time and avoid the impacts of those high APRs.

Conventional credit cards often have more favorable financial terms and earn stronger rewards compared to store cards, but there are niche times when a retail card could make sense for you.

“One is when you get a nice discount off a big purchase,” says Bankrate senior industry analyst Ted Rossman.

Store cards that provide a set percentage off your order when signing up could work if you’re making a large enough purchase this Black Friday or Cyber Monday.

“If you’re saving 20% on a bunch of pricey kitchen appliances or electronics, that can really add up,” Rossman says. But he cautions against applying for cards that only offer $10 or $20 coupons to an already relatively cheap order.

Store cards can also provide some great value over time to dedicated shoppers who are loyal to certain stores. For instance, the OnePay CashRewards Card earns 3% cash back on in-store and online Walmart purchases, or up to 5% back if combined with a Walmart+ membership.

If you do more of your shopping at Target, the Target Circle™ Card provides 5% off in-store and online Target purchases, with the exception of gift cards and a few other similar items.

For online shoppers, the Prime Visa (see rates and fees) earns 5% back at Amazon.com, Amazon Fresh and Whole Foods Market (with an eligible Prime membership). Plus, as a welcome bonus, it comes with an automatic $250 Amazon gift card upon approval.

For some of these cards, like the Target card, the level of rewards is “likely more than you would earn using any other card,” says Rossman.

If you manage your spending and pay off the card each period, you can rack up meaningful rewards related to the store. All of these cards are open-loop, but they don’t earn the strongest rewards outside of their specific stores.

Store cards can unlock some steep discounts and helpful perks, but they have a few negatives to be aware of.

“Store credit cards charge really high interest rates,” Rossman says. This is evident as the average interest rate for store-only cards (closed-loop) is 31.64%, while the average rate for retail cards in general sits at 30.14%, according to Bankrate’s 2025 Bankrate Retail Cards Study. That’s almost 10% higher than traditional credit cards. These higher APRs can trap people in debt cycles, where interest is piling up faster than they can pay down their balance.

It’s also more common for retail cards to offer deferred interest promotions, which is vastly different from 0% or no interest. With deferred interest, if you don’t pay off the full balance by the due date, the card retroactively charges all of the interest that would have accrued, Rossman explains, making these offers much riskier.

Rossman also cautions against applying for too many cards at once. Although this isn’t a problem exclusive to store cards, it can be tempting to take out multiple lines of credit, especially around the holidays. This can hurt your credit score and potentially lead you into some bad financial habits.

If you’d prefer credit cards that aren’t tied to a specific store or want to earn stronger rates on more generalized purchases, here are a few non-store card alternatives.

The Wells Fargo Active Cash® Card earns an unlimited 2% cash rewards on purchases, removing the need to track categories. This can be a great option if your holiday shopping is spread across various hobbies or stores, as you’ll earn rewards no matter where you spend.

The Blue Cash Everyday® Card from American Express earns 3% back on U.S. online retail purchases on up to $6,000 in eligible purchases per year, then 1%. Cash back is received in the form of Reward Dollars and can be redeemed as a statement credit or at Amazon.com checkout. The card also comes with *purchase protection, which protects covered purchases made against accidental damage and theft for up to 90 days after purchase.

* Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

If you’re looking for an option that’s more available to those with lower credit, the Capital One Quicksilver Secured Credit Card earns 1.5% cash back on all purchases. Its rewards rate is slightly lower than the Wells Fargo card’s 2% cash rewards rate, but the Quicksilver Secured is available to those with limited to fair credit, as long as you can make at least a $200 deposit.

At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Ted Rossman, Senior Industry Analyst of Credit Cards at Bankrate.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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For rates and fees of the Blue Cash Everyday® Card from American Express, click here.