Cato Credit Card

The Cato Corporation, a leading specialty retailer of value-priced women’s fashion apparel with corporate offices located in Charlotte, North Carolina, operates three concepts: Cato, It’s Fashion and Versona. This company offers their customers the latest styles in fashion for any occasion. It has over 1,300 stores throughout the United States and a diverse workforce of over 10,000 associates. The Company’s stock is traded on the NYSE under the symbol “CATO”.

Unlike other stores, Cato only offers one credit card option. The credit card they offer does not come with any type of rewards system in place and offers no special financing options. Penalty fees included with the Cato credit card include late payment fees of up to $20 and returned payment fees of up to $25. The grace period listed for the Cato Credit Card is at least 28 days*. So interest charges will not be applied for new purchases during this time. This is a store or catalog card, not a traditional credit card. Acceptance of this card is normally bound to the merchandiser.

The application is very simple and easy. All you have to do is to fill a short online form and submit it. You will be given a Short guide on how to apply for the credit card without going through a lot of processes.

1. This card access your account balance, available credit, payment information or make a payment by phone.

2. The 20% discount is really handy.

3. No finance charge if the balance is paid in full on or before your next billing date.

4. No annual fee is charged.

5. Regular APR rate is 22.9% and no interest will be charged for new purchases.

If the credit card offered by Cato doesn’t seem very appealing, or you simply don’t enjoy shopping at Cato, one of these other cards might be a better option.

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.