Upgraded Points, the travel and credit card site, has released a new report about the most popular store-issued credit cards in each U.S. state.
Among the dozens of common retail credit cards available, the nation’s most popular cards originate from six big-box retailers — Best Buy, Costco, The Home Depot, Lowe’s, Target and Walmart – based on Google Search data over the past 12 months that found the home improvement sector to be the prime driver of interest in these cards.
Of these, Best Buy, the electronics retailer, claims the title of having the most popular store credit card in 22 U.S. states, predominantly in the Midwest and West – although it’s tops in New York, too. New England, including Connecticut, prefers The Home Depot, while the South in general goes for Lowe’s. Only two states chose the Costco card over the others – Hawaii and Idaho.
Retail credit cards often carry more restrictions, lower credit limits and higher rates and fees than standard bank-issued cards. Challenges to retail cards have also emerged from the growth of “buy now, pay later” services such as Klarna, Affirm and Afterpay. Amid recent shifts in the credit industry – including a proposed federal rule that would curb how much card issuers can charge in fees – retail card companies are facing serious headwinds.
But while consumers now have more options than ever, there may still be good reasons for shoppers to use store-issued credit cards. These are generally easier to obtain, making them appealing not only for loyal shoppers but also for those with limited or middling credit.
