AARP Credit Cards

AARP is known for the senior discounts it has won for its members, and this card continues that tradition. It pays an unlimited 3% cash back at restaurants and at gas stations. Three percent would be a pretty good rate in those categories for any card, but it’s excellent on a card with a $0 annual fee. You get a mundane 1% back on all other spending, so if you don’t spend much on restaurant dining or gas, this isn’t your card.

You don’t have to be an AARP member to apply for this card, although you have the option to redeem your cash back directly with AARP to pay for membership in the organization. Rewards can also be redeemed for a credit on your statement, a deposit into a bank account, gift cards or travel, among other options. There’s a modest sign-up offer: $100 bonus cash back rewards after you spend $500 on purchases in the first 3 months from account opening.

Unfortunately, the card does charge a 3 percent fee for foreign transactions. If your travel plans mostly include trips outside of the U.S., you are better off searching for a travel card with no foreign transaction fee.

You appreciate a card that gives a portion of the card’s earnings to charity.

You’re an AARP member and want a card that supports the organization.

AARP Credit Card from Chase cardholders get access to benefits including:

• Giving back – For each restaurant purchase you make, 10 cents will be donated to support AARP’s Drive to End Hunger, up to $1 million in 2017.

• Purchase protection – New purchases are covered for 120 days against damage or theft, up to $500 per claim and $50,000 per account.

• Sign-up bonus: With the AARP Credit Card from Chase, when you spend $500 on purchases in the first three months from account opening, you will earn $100 cash back.

• Charity donation: Chase donates 10 cents to the AARP Foundation for the Drive to End Hunger for every purchase you make at restaurants using your card.

• Extended warranty protection-Eligible warranties of three years or less are extended by one year.

• Zero liability protection – You will not be responsible for fraudulent charges made using your card or account information.

If you have shakier credit, you may receive a purchase and balance transfer APR as high as 24.74% variable. Check your terms and conditions to see your interest rate.

• Fees.

Making late or returned payments could result in fees as high as $35. You’ll incur fees for balance transfers, cash advances and foreign transactions.

You may prefer a different card if you’d like a higher cash back rewards rate for different types of purchases.

In the end, this card is a solid option for seniors who dine out or hit the highway regularly and want to earn cash back without paying an annual fee.

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.