TREE - 35% of Americans Likely to Apply for a Store Card This Holiday Season Big Jump from 2021

PR Newswire

LendingTree Report Shows Kohl's as Most Popular Store Card in Consumer's Wallets

CHARLOTTE, N.C. , Dec. 15, 2022 /PRNewswire/ -- A year after consumer interest in store credit cards plunged, more Americans say they're considering applying for one this holiday season. New data from LendingTree finds that store cards are the most common in Nashville, Tenn. and Baton Rouge, La. , with Kohl's being the king of all store-branded cards, topping the list as the most popular in American's wallets.

• 35% of Americans say they're at least somewhat likely to apply for a store credit card this holiday season, up from 29% a year ago and the second-highest percentage in the five years of data from LendingTree.
• Store cards are most common in Tennessee and Louisiana . Nashville tops the list (47.5%), followed by Baton Rouge (47.2%), Knoxville (46%) and New Orleans (45.2%).
• The most popular store card across the 100 largest metros is from Kohl's (9.5%). Lowe's (6.3%) and Amazon (6.2%) immediately follow.

To save big and earn rewards, more than a third of Americans say they're eying store credit cards this holiday season. However, the magic of those new cards might wear off as soon as the holiday decorations are put away. Nearly 4 in 10 people who have a store card say they've regretted getting at least one of them, and 14% say they've regretted getting several store cards.

"Life is so expensive right now, and everything seems to be getting pricier by the day," says Matt Schulz , LendingTree's chief credit analyst. "That's causing many Americans to rely more heavily on credit to make ends meet, so it shouldn't be surprising that folks would take a closer look at store credit cards, too."

1. Kohl's / 9.5% of all store cards
2. Lowe's / 6.3% of all store cards
3. Amazon / 6.2% of all store cards

The average credit limit across the country for store cards is $2,241 . The lower the credit limit, the more easily cardholders can max out, especially if balances aren't paid off in full each month. Schulz says the right store card may help consumers slightly stretch their holiday shopping budget but using it wisely is key. "If you ever carry a balance, store cards probably just aren't for you because their interest rates are sky-high, even by credit card standards."

• Be wary of the initial savings offerings. The rewards might be enticing, but it's easy to rack up debt if you spend beyond your means and carry a balance.
• Pay the bill in full each month. Right now, credit card rates are high and even higher for store cards. Paying the card off every month will secure your rewards while keeping you out of debt.
• Pick your favorite store and stick to it. Opening multiple lines of credit during the holiday season will likely plummet your credit score in the new year.
• Consider other types of credit cards depending on your financial goals. The best credit card for you may not be a store card.

To view the full reports, please visit:
https://www.lendingtree.com/credit-cards/study/store-card-analysis/
https://www.lendingtree.com/credit-cards/study/popular-store-cards/

LendingTree (NASDAQ: TREE) is one of the nation's largest, most experienced online marketplaces, created to give power to consumers so more people can win financially. LendingTree strives to provide consumers with easy access to the best offers on home loans, personal loans, insurance, credit cards, student loans, business loans, home equity loans/lines of credit, auto loans and more, through its network of over 500 partners. Founded in 1996 and launched nationally in 1998, LendingTree has helped over 111 million consumers obtain financing, save money, and improve their financial and credit health with transparency, education, and support throughout their financial journey.

LendingTree, Inc. is headquartered in Charlotte, NC . For more information, please visit www.lendingtree.com .

MEDIA CONTACT:
Morgan Lanier
morgan@lendingtreenews.com

SOURCE LendingTree.com