--- title: Should I get a store credit card? date: 2025-09-03T11:28:00-04:00 canonical_url: "https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-should-i-get-a-store-credit-card" section: Articles --- [ Back to the hub ](https://grantthorntonlimited.ca/en/debt-help-resources/articles) # Should I get a store credit card? ![A woman in a yellow shirt holding a credit card in one hand and a phone in the other](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleHero/33322/store-credit-card-blog-image-square.webp) Store credit cards—like those from grocery stores or even coffee shops—can seem like a smart way to save money while shopping. Signing up may earn you bonus points, cash back, or exclusive discounts. But these cards are more than just loyalty programs; they're real credit cards that come with real consequences if they’re not paid. Store credit cards can lead to high-interest debt, damage to your credit score, and can create [financial stress](https://grantthorntonlimited.ca/en/debt-help-resources/articles/mental-and-financial-health) that can be hard to manage. ## What’s a store credit card? A store credit card is different from a rewards or loyalty card. A loyalty card might give you discounts, points, or other perks—but they don’t let you borrow money. Store credit cards function exactly like your regular credit card. They require a credit check, they charge interest if you don’t pay off the balance in full, and they can [impact your credit score.](https://grantthorntonlimited.ca/en/debt-help-resources/articles/what-affects-your-credit-score) In Canada, most retailers co-brand their store cards. This means the retailer partners with a major credit card company such as Visa or Mastercard. You can use them anywhere, but the store that issued the card usually ties the perks and benefits to your purchases from their store. ## Why do stores offer credit cards? Large retailers and smaller businesses are always looking for ways to gain and keep customer loyalty—and make money. Store credit cards are designed to: - **Encourage spending:** you’re more likely to shop where you get discounts, cashback, or earn points that can be redeemed. - **Build loyalty:** if you have points or discounts at a certain store, you’re more likely to continue shopping there compared to a different store where you don’t receive these same perks. - **Boost profits:** the store might make money off the application, annual fees or receive a portion of the interest if you fall behind on monthly payments. ## What are the benefits of getting a store credit card? Some credit cards offer appealing benefits—especially if you shop regularly at the same retailer. Stores may tie their best rewards to their credit card programs, letting you earn more points, cashback, or instant discounts at checkout. Store credit cards are often easier to qualify for than traditional credit cards, which makes them a tempting option if you have a low credit score or you’re trying to rebuild your credit after a financial setback. ## What are the risks of store credit cards? These cards might seem appealing at checkout, but they might not be your best option. Most store credit cards have much higher interest rates than traditional credit cards, which means falling behind on payments can get expensive fast. If you’ve signed up for multiple store cards, it’s easy to forget a due date or lose track of balances. Store credit cards also tend to have lower credit limits, which can lead to high utilization that can hurt your credit score. For example, spending $400 on a card with a $500 limit means you’ve used 80% of your available credit, while the same purchase on a card with a $2,000 limit would only be 20%. This matters because credit card companies typically focus on your utilization rate—not the dollar amount spent—when assessing your creditworthiness. On top of that, store credit cards may also come with extra fees like account setup charges, annual fees, or penalties for late payments and cash advances. While signing up might take just a few minutes at the register, cancelling can be a hassle. You’ll likely need to call customer service and ensure you pay off the balance and any interest before you can close the account. ## Do store credit cards affect your credit score? Yes. Store credit cards report to [credit bureaus](https://grantthorntonlimited.ca/en/debt-help-resources/articles/how-to-read-your-credit-report) like any other credit card. They also run a credit check when you apply which can decrease your score. Having multiple credit cards can make you look high risk to lenders, so multiple store cards can limit your ability to qualify for other loans or credit. ## Should you get a store credit card? The answer to “should I get a store credit card?” depends on how you're going to use it. There are plenty of options for credit cards out there, but which one to get depends on your individual goals. If you’re trying to manage debt or reign in [bad spending habits](https://grantthorntonlimited.ca/en/debt-help-resources/articles/avoid-overspending-with-this-simple-mindset-shift), consider using a secured credit card instead. These are great for [rebuilding credit](https://grantthorntonlimited.ca/en/debt-help-resources/articles/how-to-build-credit-in-canada-a-guide-for-beginners) after a bankruptcy or consumer proposal. Prepaid cards are a good option for those that require the functionality of a credit card (such as online shopping), but they don’t have interest, and you won’t accumulate any debt. If you’re thinking about getting a store credit card, consider these [debt warning signs](https://grantthorntonlimited.ca/en/debt-help-resources/articles/debt-danger-signals)—and try asking yourself these 5 questions to better understand if getting that store credit card is the best option for you: - Can I afford to pay the balance in full every month? - Is the interest rate higher than my current credit card? - Will this card help or hurt my credit score? - Am I signing up just for today’s discount or perk? - Do I need another credit card? If you answered no to any of these—hold off. No discount is worth the long-term debt. If you’re already caught up in overspending or have [credit card debt piling up](https://grantthorntonlimited.ca/en/debt-help-resources/articles/options-for-getting-out-of-credit-card-debt), there are solutions. [Book a free consultation](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) and talk to one of our debt solutions professionals to understand the best option for you. ## Latest articles [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/65155/recreational-vehicle-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [### What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/63555/influencer-survey.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [### Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/63201/cp-annulment-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) [### What happens if you miss a consumer proposal payment? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) ## Subscribe to our newsletter Get tips and tools to help manage your finances and live debt free. \*I agree to receive communications from Doane Grant Thornton. I understand that I can unsubscribe at any time. ## **Take the first step** to debt freedom Speak to one of our debt solutions professionals during a free, no-obligation consultation. [ Book a free consultation ](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) ## Related articles ![Marina filled with sailboats and recreational boats along the Charlottetown waterfront on a sunny day.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/65155/recreational-vehicle-square.webp) ### [ What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) For many Canadians, recreational vehicles offer freedom, adventure, and unforgettable family memories. But if you’ve financed an RV, travel trailer, boat, ATV, snowmobile, or side-by-side, those monthly payments can become difficult to manage if life takes an unexpected turn. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) ![A woman in scrubs sitting on a park bench looking at her phone, with imagery of social media likes and spending surrounding her.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/63555/influencer-survey.webp) ### [ Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) While social media may be free to use, the things it influences us to buy often come at a cost. As influencer marketing continues to grow, more Canadians are making purchases based on what they see online. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) ![A woman sitting with papers and a calculator in front of her](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/63201/cp-annulment-square.webp) ### [ What happens if you miss a consumer proposal payment? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) Missing a payment during your consumer proposal can feel scary—but it’s not the end of the road. This article explains exactly what happens if you miss a consumer proposal payment, how to avoid annulment, and what to do if your consumer proposal is annulled. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) ![A young woman sits with and supports an older woman holding a cane.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/Web-image-square/_articleThumbMedium/58677/caregiver-article-square.webp) ### [ Tips to avoid debt as a family caregiver in Canada ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-tips-to-avoid-debt-as-a-family-caregiver-in-canada) With the rising cost of living and long waitlists for long-term care, more Canadians are becoming family caregivers, but it can come with an emotional and financial cost. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-tips-to-avoid-debt-as-a-family-caregiver-in-canada) ![Person packing a box for moving](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/57664/adult-child-moving-home-square.webp) ### [ How to budget when your adult child moves back home ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-budget-when-your-adult-child-moves-back-home) Adult children moving back home isn’t just a trend—it’s quickly becoming the norm. While the cost of living continues to climb across Canada, many Gen Z and millennial Canadians are packing up their apartments and returning to the nest as “boomerang kids.” [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-budget-when-your-adult-child-moves-back-home) ![Person looking down at bills with head in hand, surrounded by paperwork and an open laptop.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/56923/utilities-square.webp) ### [ What happens if you don’t pay your utility bills in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-dont-pay-your-utility-bills-in-canada) If you’re worried about unpaid electricity, heating, or water bills, you’re not alone. But disconnection isn’t immediate, and you usually have options to protect your service while you get back on track. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-dont-pay-your-utility-bills-in-canada) ![An older aged couple sitting together on the couch looking at their laptop and phone](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/55588/BLOG-retire-debt-free-square.webp) ### [ How to plan a debt free retirement ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-plan-a-debt-free-retirement) Retirement should feel like a reward, not something to stress about. But with the cost of living rising across Canada, more people are tapping into retirement income earlier than planned. A comfortable, debt-free retirement is still possible with the right mix of planning, realistic expectations, and support when you need it. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-plan-a-debt-free-retirement)