2024 Store Credit Card Report: Average APR Tops 30%, Even As Consumer Interest Grows

The average APR for a new store credit card is nearly 31.00%, according to a new LendingTree report. However, despite sky-high rates, consumer interest in these cards has grown in the past year.

This is the seventh straight holiday season in which LendingTree has reviewed the most popular store credit cards in America and asked consumers how likely they are to apply for one of them.

Here’s what we found.

Key findings

• The average APR for a new store credit card offer is 30.78% — the highest since we began tracking in 2018. That’s about a point and a half higher than last year, more than four points higher than in 2022 and a whopping six-and-a-half-plus points higher than in 2021. It’s also far higher than the average for all new credit card offers of 24.61%.
• Despite rising rates, consumer interest in store cards grew in the past year. Nearly 3 in 10 consumers (29%) are at least somewhat likely to apply for a store credit card this holiday shopping season. That’s up from 27% a year ago but down from 35% in 2022. That 29% this year includes 13% who say they’re highly likely to apply, the highest since we started tracking this differentiation in 2021.
• More Americans prefer store cards over buy now, pay later (BNPL) loans. Just 42% of Americans prefer BNPL loans, while 58% prefer store cards. However, the younger you are, the more likely you are to say you prefer BNPL.
• 46% of store cardholders say the credit card they use most is a store card. Men are far more likely than women to say so (52% versus 38%). Also, the younger you are, the more likely you are to say so.

Average store credit card APR nears 31.00%

APRs of 30.00% or higher were once a rarity. Sure, there have long been cards that topped that rate, but they were relatively few and far between. They were also typically only sought by those with damaged credit and few other options.

Today, 30.00% is the norm among store credit cards. Of the 106 cards reviewed, 75% had a possible APR of 30.00% or higher. The average APR we found was 30.78% — by far the highest we’ve seen in the seven years we’ve been tracking this. That’s up about a point and a half from 2023, more than four points from 2022 and six-and-a-half-plus points from 2021.

It’s also more than six points higher than the average APR for all new credit card offers of 24.61%. It isn’t surprising that store cards have higher rates than other cards — we’ve consistently seen a difference of at least four percentage points since tracking began — but this spread is the biggest we’ve seen.

Average APR for new store cards vs. average APR for all new credit cards (2018 to 2024)

Source: LendingTree analysis of issuers’ publicly available websites. The credit card averages were the most current when that year’s store card report was released.

We found 12 store cards with possible APRs of 35.99% and 14 others with possible rates of 34.99%. Of these 26 cards, only four offered a range of possible rates. That means that with the vast majority of these cards, all those who got the card got the same rate, whether you had an 800 credit score or a 500.

Not every card topped 30.00% APR, though. There were 18 cards that had a possible APR of 19.99% or lower. Two cards even had APRs of 10.00% or lower, though there were caveats. One was a secured card, meaning a deposit was required before receiving the card. The other offered a 9.99% APR on purchases made at the retailer but a range of up to 31.74% APR on all other purchases.

Consumer interest in store cards grows

Despite those sky-high rates, Americans still seek store cards.

Our survey finds that 29% of consumers say they’re at least somewhat likely to apply for a store credit card this holiday season, including 13% who say they’re highly likely to do so. That 29% is up two percentage points from last year, though still well below levels in 2022 and 2020.

Men are far more likely than women to say they may apply for a store card. More than 1 in 3 men (37%) say so, including 16% who are highly likely. Compare that to just 23% of women, including 10% who say it’s highly likely.

There’s an even bigger disparity between age groups. Almost half of Gen Zers ages 18 to 27 say they’re likely to apply for a store card this holiday season (48%, including 19% who say it’s highly likely). That’s a bit higher than millennials ages 28 to 43 (43% and 21%) but far higher than Gen Xers ages 44 to 59 (22% and 9%) and baby boomers ages 60 to 78 (7% and 2%).

Also, the highest-income Americans are the most likely to say they’ll apply for a store card this year.

Store cards or BNPL? Consumers lean this way

In recent years, buy now, pay later loans have emerged as a popular alternative to credit cards. LendingTree’s monthly BNPL tracker has consistently shown that about 1 in 3 Americans are at least considering applying for a BNPL loan in any given month. We’ve also seen many retailers offer BNPL as an option on online checkout pages.

With that in mind, we asked consumers whether they agreed with the following: “I prefer buy now, pay later loans over store credit cards as a payment option.”

Nearly 6 in 10 respondents disagree.

Those in all household income brackets prefer store cards over BNPL. However, again, there was a significant difference among generations. Nearly 6 in 10 (59%) Gen Zers and 51% of millennials prefer BNPL, while only 38% of Gen Xers and 22% of boomers say the same.

Parents with young kids slightly prefer BNPL over store cards, with 53% agreeing with the above statement.

Many use store card as their primary card

The higher your income, the more likely you are to currently have a store credit card. Two-thirds (67%) of those making $100,000 or more have one, versus just 28% of those making less than $30,000.

Still, it’s one thing to have a store credit card, but it’s something else to say that it’s the card you use most. We asked those who currently have a store card whether they agreed with the following: “The credit card I use the most is a store credit card.”

Just fewer than half of store cardholders (46%) agree.

Men are far more likely than women to say so (52% of men, versus 38% of women). Also, the younger you are, the more likely you are to say so. More than 7 in 10 Gen Zers (71%) agree, compared with 60% of millennials, 35% of Gen Xers and 19% of boomer store cardholders.

Store cards can be useful, but proceed with caution

Like any credit card, the right store credit card, used wisely, can be incredibly useful. However, our survey shows there’s one reason that stood above the rest when it came to driving people to apply.

It’s probably not surprising: 56% of those who’ve applied for a store card in the past say they did so for the discounts and rewards associated with the card.

That’s the most common reason given regardless of gender, income, age, parental status or political party. However, the second most common is the person needs a credit card and is confident they’d qualify to get it.

Regardless of your motivation, here are a few things you should know before applying for that store credit card.

• If you carry a balance, store cards aren’t for you. It’s as simple as that. The interest rates on these cards are simply too high. With an average APR of nearly 31.00%, any discounts or rewards you earn will be quickly outweighed by any interest you accrue.
• Don’t let yourself be pressured. The person behind the counter wants you to feel pressured to make a quick, uninformed decision about getting a card. It’s all part of the game. Don’t play along. If you plan to go shopping, do your homework about the card before you go. Or if you’re offered a card in the store and are interested, say no and go home and read up on it. Chances are that when you go back to the store, all the things you liked about the card will still apply, but you’ll be able to make a more informed call.
• Beware of special financing. Many store cards come with so-called special financing offers. These deals may offer 0% interest for six, 12 or 24 months, for example, when you buy with your new store card. However, many of these deals come with fine print that says that if you don’t pay off your purchase in full during the introductory period, you’ll get hit with a bill for all the interest that would’ve accrued since the purchase date. That’s big — especially with a big purchase — and can be an unpleasant surprise.
• Make sure you know where you can use the card. Some store cards can be used anywhere that takes credit cards, but many other store cards can only be used with that retailer and perhaps its sister companies. That distinction can make a big difference in the value of the card, so it’s important to understand before you apply. How do you know whether the card can be used elsewhere? If it has a Visa, Mastercard, American Express or Discover logo on it, it can likely be used elsewhere. If it doesn’t, it’s likely only to be used with that retailer and its family of stores.

Methodology

LendingTree commissioned QuestionPro to conduct an online survey of 2,040 U.S. consumers ages 18 to 78 from Sept. 13 to 17, 2024. The survey was administered using a nonprobability-based sample, and quotas were used to ensure the sample base represented the overall population. Researchers reviewed all responses for quality control.

We defined generations as the following ages in 2024:

• Generation Z: 18 to 27
• Millennial: 28 to 43
• Generation X: 44 to 59
• Baby boomer: 60 to 78

LendingTree also reviewed 106 credit card offers — including cobranded and noncobranded cards — from 73 of the nation’s biggest retailers, including brick-and-mortar and online-only stores. We reviewed basic terms and conditions, including APRs, online through issuers’ publicly available websites. Credit card offer data is accurate as of Oct. 25, 2024.