How to Obtain Store Credit

If you're interested in establishing credit or simply rebuilding your credit history, you should consider applying for store credit. Many department stores allow customers to apply for store credit--and you use the credit to purchase merchandise specifically from that merchant. Store credit cards come with many perks, such as coupons, discounts and special rewards. Obtaining store credit isn't very difficult to do. In fact, you can have a store credit card in your hands in a short period of time.

Instructions

1. Review your credit file. It is important to find out what is listed in your credit file before you actually apply for store credit. It is best to review your credit report from all three major credit bureaus---TransUnion, Equifax and Experian. You should check to see if there is any incorrect or outdated information in your credit file. Also, be sure to verify that your current address and telephone number is listed on each credit report.

2. Visit the store where you want to apply for credit. There are a variety of department stores that offer store credit. However, you should choose the two stores where you do most of your shopping and apply for credit at those locations. Applying for too many store cards at one time can have a negative impact on your credit score---especially if you are denied credit at any of the stores.

3. Make a purchase on the day you apply for store credit. Many stores offer a special discount to customers that make purchases on the day they apply for credit. However, you normally have to be approved for store credit, to receive the special discount.

4. Review the terms and disclosure statement. Be sure to find out as much information as possible about the store credit card before you actually submit your application. For example, ask the store employee what type of fees are associated with this type of card, such as an application fee, Annual Percentage Rate (APR), interest rates, finance charges, late fees and over-the-limit charges.

5. Apply for store credit. As with other types of credit cards, you will need to provide certain basic information about yourself, such as your full legal name, Social Security number, driver's license number, physical address, home telephone number, date of birth, place of employment and annual gross income. You will also need to agree to the terms and conditions of the credit card for the store employee to process the application.

6. Find out if you were approved for credit. It should only take a few minutes to process the application. So, the store employee can immediately tell you whether or not your application was approved or denied. If you were approved for store credit, you can begin shopping with your credit that same day. However, it may take up to two weeks to receive your actual credit card in the mail.

Tips & Warnings

• Be sure to pay at least the minimum amount due each month on your credit card statement.

• As with other types of credit cards, your payment history will be reported to the major credit bureaus.

• Store credit cards normally have a lower credit limit than standard credit cards.

References

• Free Annual Credit Report