Synchrony Bank Store Credit Cards

Prepaid cards are cards that you load money onto, typically through direct deposit, cash or check deposits, and online transfers from a checking account.

There’s no line of credit, so you can’t run up debt on the card.

But it’s important to be aware that these cards won’t help you build credit. Since you’re not borrowing money from a credit card issuer, your account activity isn’t sent to the credit bureaus. If you want to build your credit, consider applying for a secured credit card.

Here's how it works: You purchase a prepaid debit card online or at a retailer. Then you load cash onto the card and use the balance for purchases.

The most egregious fees are “transaction fees”. None of the prepaid debit cards on our above list will charge you a fee each time you use them to pay for something. However, it is not unheard of for some cards to charge as much as $1 for each swipe of your card.

Checklist for evaluating a prepaid debit card offer:

--Does the card have a monthly fee? If so, it should not be greater than $5.95

--If a card charges a monthly fee, what do you get out of it? Why this card, instead of a "no fee" option

--On the topic of fees, make sure the card does not charge you a fee with every purchase

--Before applying, search for online reviews. Some cards may charge hidden fees that may not be immediately obvious, and other users might have reported them

You should consider getting a prepaid debit card in these four cases:

If you can’t open a free or low-cost checking account. People who have a history of not paying bank fees or overdrawing their account will get flagged in ChexSystems, which is a special credit system that banks use.

1. If you can’t open a free or low-cost checking account. People who have a history of not paying bank fees or overdrawing their account will get flagged in ChexSystems, which is a special credit system that banks use.

2. If you don’t like certain bank fees, like overdraft or service fees. Most banks offer some free checking options but, if you overdraft your account often, you’ll rack up fees.

3. If you don’t want online purchases to have any link to a bank account or credit card. You can limit the amount of money on the card so, if anyone got ahold of your information, your downside is limited to what’s on the card instead of your entire bank account!

4. If you want to use a prepaid card to issue your kids gas money, allowance, or college-spending cash. This ensures your kids don’t go rogue and overspend on the family credit card.

1. Shopping around for the best prepaid credit cards on the market

Compare the different features available on a card alongside the fees being charged to see if it’s worthwhile for you. We’ve done the majority of the work for you and made a chart of the better cards available below.

2. Setting up direct deposit

Since many cards will forgive the monthly fee if you load a certain amount of money onto your prepaid credit card each month, it’s a good idea to set up a direct deposit that automatically goes onto your card. This way you’ll always have that money in the account for you to access and reach the monthly load limit with ease. This can be your paycheck, social services payments, etc.

3. Using free online services

Some prepaid credit cards will charge you for checking your balance over the phone, while others do not. You can avoid these charges altogether by using the free online resources that let you manage your account on the computer or mobile devices.

4. Avoiding ATM withdrawals

Many prepaid credit cards will charge you for ATM withdrawals. Plus, you’ll have to pay whatever service charge the ATM provider charges. This makes each transaction more expensive than other options. In general, purchases are the best way to spend money with your prepaid credit card.

The only difference between store credit cards and regular credit cards is that store credit cards are branded and associated with a specific retailer and its rewards program. Store credit cards offer in-store discounts, allow cardholders to earn and redeem points when making purchases.

There are two basic types of retail store credit card:

• Open-loop cards: These cards with a Visa, MasterCard or American Express logo in the bottom-right, can be used anywhere.

• Closed-loop cards: These cards without a Visa, MasterCard or American Express logo only can be used at their co-branded stores, online stores or affiliates.

For example, there are three types of Best buy credit cards, My Best Buy Credit Card, My Best Buy Visa Platinum Credit Card and My Best Buy Visa Card. My Best Buy Credit Card is a closed-loop card, so you can only use it at Best Buy. My Best Buy Visa Platinum Credit Card and My Best Buy Visa Card are open-loop cards, you can use them anywhere that Visa is accepted.

Easy to get and can help you to build credit

Because of store credit cards’ high interest rates and low credit limits, they are easy to get with fair or poor credit. If you can use it responsibly, this is an opportunity to build up your score.

A reasonable annual fee

Many great store rewards cards don’t have an annual fee.

Save money at your favorite stores

Store rewards cards have different rewards programs which are great ways to save money, especially you are a frequent customer of that shop. For example, My Best Buy Credit Card offers as much as 5% cash back.

Additional sign-up bonuses and benefits

Many store reward cards attract new customers with a sign-up bonus. What’s more, some store reward cards offer extra benefits, such as discounts, free shipping, a birthday gift and extended return policies.

Open-loop cards can be used anywhere as normal credit cards.

Low credit limits

This means that you have the risk of going over your credit limits.

High interest rates

Most store credit cards’ interest rates are higher than the industry average (17%).

Closed-loop cards are limited to single store

Many store credit cards can only be used at their store or online shop. But some store credit cards can be used anywhere like normal credit cards, such as Amazon Prime Rewards Visa Signature Credit Card.

Customer service problems

Some store credit cards are not issued by major cards issuers, so the quality of customer service is difficult to guarantee.

Some store credit cards can’t be used for balance transfers

Credit score

Banks approve much lower credit scores for store cards. Therefore, applying a store card is an ideal way for someone with a fair or poor credit score to rebuild his or her credit.

Credit card application

You can apply for a store credit card online, in-store or by email depending on the card. And you just need to fill in your personal information and submit your application. The credit card issuer will consider your credit reports and several different factors when reviewing your application to get an idea of your creditworthiness.