 TITLE: Can Store Credit Cards Build Credit? CONTENT: What Is a Store Credit Card?\n----------------------------\nA store credit card works like a traditional credit card—you can use the card to make purchases you pay off at a later date, potentially with interest. You may be offered a store credit card by a cashier at a checkout counter and be instantly approved right then and there.\nWhen you use a store card with the retailer that provided it, you may receive discounts, increased credit card rewards, free shipping or other perks you wouldn't receive if using a different payment method.\nThere are two types of store credit cards:\n*   **Closed-loop retail cards**: These cards can typically only be used with the retailer. However, some can be used with other brands and partners of the retailer.\n*   **Open-loop retail cards**: These cards are co-branded by both the retailer and a major payment network, like American Express, Mastercard or Visa. You can use open-loop retail cards with the specific retailer or anywhere that accepts the payment network displayed on the front of your card.\nYou can expect to pay more in interest on a store credit card than a traditional credit card. However, it may be easier to be approved for a store credit card versus a traditional, unsecured credit card. Closed-loop credit cards tend to have lower requirements than open-loop cards and can help you build credit just the same.\nSome retailers only offer closed-loop cards, while others provide both types of store credit cards. Inquire before you apply to determine if you can choose between the two. You're likely to get more use out of an open-loop card, but closed-loop cards can also be appealing if the perks are generous and you frequent the merchant providing it. END