Applications Rising for Store Credit Cards

Applications Rising for Store Credit Cards

January 28, 2020         Written By Lynn Oldshue

More Americans applied for store credit cards in 2019 than they did in 2018, according to a new study focused on holiday shopping experiences. Approximately 37% of Americans applied for a retail credit card over the 2019 shopping season compared to just 28% the year before. Only 6% of applicants said they were denied for a card.

Nearly half (45%) of shoppers said they applied for a store card to take advantage of a special discount. Another 27% said they would not have funds otherwise to cover their purchases, and 14% said they felt pressure from the cashier to apply. Men were almost twice as likely as women to apply for a store card: 40% vs. 22%.

Store credit cards typically have a very high interest rate which should be a major concern for consumers. This study found the average store credit card had an APR of 25.41%.

Well before the holiday shopping season, Americans were already stressed about holiday debt: 42% of shoppers said they were worried about stretching their budget to accommodate their costs. Entering the new year, only 28% of new store cardholders plan to pay off their card balances within one month. That is down from 49% the year prior.

For many, the solution to lingering holiday debt may be just around the corner. A Jackson Hewitt study from last year found that 41% of Americans planned to use their tax refunds to pay down holiday bills.

The information contained within this article was accurate as of January 28, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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lynn-oldshue

About Lynn Oldshue

Lynn Oldshue has written personal finance stories for LowCards.com for twelve years. She majored in public relations at Mississippi State University.