With the Holidays Here, Kohl’s Is the Most Popular Store Card in Americans’ Wallets

Gift-buying season is here, so shoppers may be inundated more than usual with on-the-spot offers for retail credit cards. The latest LendingTree study of store card usage across the 100 largest U.S. metros reveals which cards are the most popular, which areas have the most cardholders and where cards are most likely to get maxed out.

Choosing the right store card is all about doing your homework to make an informed decision, says Matt Schulz, LendingTree chief credit analyst.

“People tend to make bad decisions when rushed, and that can certainly be the case with credit cards,” Schulz says. For this reason, we include tips on how to utilize store cards this holiday season.

Key findings

• The most popular store card across the 100 largest metros is from Kohl’s. Based on an analysis of anonymized credit reports of LendingTree users, 9.5% of all store cards held by these users are from Kohl’s. Lowe’s (6.3%) and Amazon (6.2%) follow.
• Store cards are most common in Tennessee and Louisiana. More than 40% of cardholders have at least one store card in just four metros — and they’re in these two states. Nashville, Tenn., tops the list, with 47.5% of credit cardholders having a store card, followed by Baton Rouge, La. (47.2%), Knoxville, Tenn. (46.0%), and New Orleans (45.2%). Two California metros — San Francisco (12.3%) and San Jose (12.4%) — are at the bottom.
• The average credit limit for store cardholders across the 100 largest metros is $2,241. The average is highest in Kansas City ($3,255), Albany, N.Y. ($2,969), and Omaha, Neb. ($2,916). The average is lowest in Little Rock, Ark. ($1,686), Harrisburg, Pa. ($1,733), and Fresno, Calif. ($1,765).
• Nearly 1 in 5 (17.1%) credit cardholders in Bakersfield, Calif., have at least one maxed-out store card. The closest metros to Bakersfield are Scranton, Pa. (14.9%), and Ogden, Utah (14.3%). At the bottom among the 100 metros are Syracuse, N.Y. (5.5%), Raleigh, N.C. (5.8%), and Albany, N.Y. (5.9%).

Most popular store cards: Kohl’s, Lowe’s and Amazon

The king of store cards in the U.S., based on the anonymized credit reports of LendingTree users, is Kohl’s, representing 9.5% of all retail cards. With more than 1,100 retail locations across the U.S.., it makes sense. Rounding out the top five are Lowe’s, Amazon and Macy’s (each representing just over 6% of all store cards), with Target just behind at 5.3%.

What makes these cards so popular are their generous, ongoing rewards for cardholders, not to mention the overall popularity of the stores. For example, Schulz says the Prime Visa is probably the best store card in the country.

Cardholders can earn unlimited 5% back at Amazon.com, Amazon Fresh, Whole Foods Market, and on Chase Travel purchases with an eligible Prime membership, unlimited 2% back at gas stations, restaurants, and on local transit and commuting (including rideshare), and unlimited 1% on all other purchases. The card also comes with a valuable sign-up bonus: Get a $150 Amazon Gift Card instantly upon approval exclusively for Prime members.

Both the MyLowe’s Rewards Credit Card and Target Circle™ Card offer an automatic 5% discount on eligible purchases, which can add up if you’re a frequent shopper. And shoppers enjoy perks like free shipping and points-earning on purchases.

Source: Analysis of about 300,000 anonymized credit reports of LendingTree users in the 100 most populous U.S. metros.

Store cards most common in Tennessee, Louisiana metros

The metro where the highest percentage of people have store credit cards — nearly 1 in 2 — is Nashville, Tenn. (47.5%). Next is Baton Rouge, La. (47.2%), Knoxville, Tenn. (46.0%), and New Orleans (45.2%), making Tennessee and Louisiana the biggest hubs for retail cards.

Four New York metros are also in the top 10 — Rochester, Buffalo, Syracuse and Poughkeepsie.

At the bottom of the list are two California metros — San Francisco (12.3%) and San Jose (12.4%) — followed by Atlanta (12.5%) and Seattle (14.0%). Miami and Jacksonville also represent Florida in the bottom 10.

Higher incomes and/or higher credit scores in San Francisco and San Jose might play a role, Schulz says. For instance, a 2021 FICO Score study found that San Francisco residents had an average credit score of 746 — highest in the U.S. and well above the national average of 716. The two California metros also have the highest median household incomes in the U.S.

“Though higher incomes don’t always mean higher credit scores, they often mean more options when it comes to credit,” Schulz says. “In many of these metros, I’d suspect that lots of folks simply don’t need to use a store credit card and choose to use other cards in pursuit of better interest rates and more lucrative rewards.”

Source: Analysis of about 300,000 anonymized credit reports of LendingTree users in the 100 most populous U.S. metros.

Where average store card limits are the highest and lowest

Overall, store cardholders in the top 100 metro areas have an average credit limit of $2,241, but there’s a much wider range by metro. Kansas City has the highest in the nation at $3,255, followed by Albany, N.Y. ($2,969), and Omaha, Neb. ($2,916). Areas with the lowest store card credit limits include Little Rock, Ark. ($1,686), Harrisburg, Pa. ($1,733), and Fresno, Calif. ($1,765).

“Store credit cards don’t usually come with sky-high credit limits regardless of who applies for them,” Schulz says. However, those with lower credit scores and lower incomes will likely be offered lower credit limits when applying for a new card, he says.

With regular spending and good payment history, however, store cards increase cardholder credit limits over time.

Source: Analysis of about 300,000 anonymized credit reports of LendingTree users in the 100 most populous U.S. metros.

Nearly 1 in 5 residents in Bakersfield, Calif., have a maxed-out store card — here’s a look at the most populous metros

Bakersfield, Calif., store cardholders aren’t managing their store cards well, with 17.1% of them having maxed-out balances. Right behind them are Scranton, Pa. (14.9%), and Ogden, Utah (14.3%), cardholders. The metros least likely to have a maxed-out store card are Syracuse, N.Y. (5.5%), Raleigh, N.C. (5.8%), and Albany, N.Y. (5.9%).

One thing worth noting is that store cards generally start with fairly low limits. And in areas that tend to have lower-income or credit-challenged folks applying, those initial offers may be even lower. So even a balance that doesn’t seem so terrible — say, a couple of hundred dollars — could quickly approach maxed-out territory.

Source: Analysis of about 300,000 anonymized credit reports of LendingTree users in the 100 most populous U.S. metros.

How to utilize a store card this holiday season

When shopping for the holidays, being strategic with your credit cards, including store cards, can help you save money, earn rewards and stretch your budget. However, you always want to tread carefully whenever applying for a new credit card. Here’s what you need to know.

• Don’t get baited by the initial discount offered. Last holiday season, a LendingTree survey found that just 29% of people planned to apply for a store credit card. With high inflation, it’s not surprising that the percentage jumped to 35% this year. While initial store card discounts may be enticing, you can easily negate savings if you spend beyond your means and carry a balance, so make sure to be careful.
• Only open cards for stores that you shop at frequently. “The right store credit card, used wisely in a place where you shop frequently, can be a good deal,” Schulz says. In recent years, stores have done a better job at tailoring their offerings to the needs of their customers, including offering greater discounts and more lucrative perks to those who spend more in their stores, he says. In other words, if you do the bulk of your holiday (and year-round) shopping at a particular retailer, that card is worth considering. But if you’re picking up a sweater for your nephew from a fashion brand you don’t shop otherwise, it’s not worth getting.
• Plan to pay the bill in full each month. “If you carry a balance, store cards probably aren’t for you,” Schulz says. “All credit card rates are sky-high these days, but rates for store cards are even more so.” For example, while the national average APR on new credit cards is 22.40%, the APR on the is , while the MyLowe’s Rewards Credit Card APR is 31.99% variable.
• Limit yourself to just one store credit card. “It’s OK to open a new store credit card while you’re out,” he says. “Just don’t do it in every store you visit.” Opening multiple lines of credit during the short holiday season will likely tank your credit score since new credit is one of the main factors impacting credit score calculations. Applying for a lot of credit at once can signal that you’re having cash flow problems. Not to mention that juggling multiple store card balances can get tough to manage.
• Choose the best card for the holidays. If you’re in the market for a new card and a store card would unlock an exclusive deal, it could be worth opening. But if you’re pretty sure you won’t be able to pay holiday balances off right away, you may be better off with a regular credit card with a 0% APR introductory period.

Methodology

Analysts calculated the percentage of credit cardholders with at least one retail or store card by analyzing about 300,000 anonymized credit reports of LendingTree users in August 2022 in the 100 most populous U.S. metros.

Specifically, analysts calculated the most popular store cards, the percentage of credit cardholders with at least one store card, the average credit limit for store cards and the percentage of credit cardholders with at least one maxed-out store card.

The information related to the Kohl's Charge, MyLowe’s Rewards Credit Card and Target Circle™ Card has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.