Have you ever walked into your favorite retailer and wondered, «How do store credit cards work? Store credit cards are offered with nearly every purchase you make at a store—primarily with department stores, but now you can get them from home improvement stores and chain stores such as Target. Store credit cards work similarly to traditional credit cards. You make purchases on the card, which you can pay off over time. Each month you will be required to make a minimum payment. The interest rates on store credit cards tend to be higher than you would have on a traditional card. Many stores will offer discounts if you use the credit card to make a purchase and they may also offer incentives like additional money off on your next purchase. Many store credit cards are offered by banks through the store. It is important to carefully read the credit card agreement so that you know which bank is handling the card and how to make payments on time. You may be able to apply for a store credi...