Store charge cards offering more rewards -- page 2

Folks who carry a plain old account with Bloomies may get advance notice of sales and private preview days, but they can't earn a single rewards point -- not until they charge $1,000 in a single calendar year.

So when you think about it, to earn a $25 reward at Bloomingdale's you'd have to spend at least $1,834 or $1,417 if you shop during a double rewards event. That's not much of a reward is it? And the interest rate on a Bloomingdale's card is nothing to brag about either: a hefty 21.6 percent.

At Banana Republic, store card customers that charge $800 in a single year qualify for a special Luxe card. Luxe customers get free alterations on all purchases and snag a $25 reward each time they pile up 500 reward points on their cards. Luxe customers earn one point for every dollar they charge on their cards except during double points week when they earn two points for every dollar they spend. To earn a $25 reward, you'd need to spend $500 on your Luxe card or $250 during a double points sale, after spending $800 to earn the card. On special Luxe days, you may be able to earn triple points on some purchases.

Folks with a regular Banana Republic card can earn rewards points as well. Banana Republic cardholders earn one point for every dollar they charge expect during double points weeks when they earn two points for every dollar they spend. To qualify for a $15 award, you need to rack up 350 points. You could earn that in a snap by spending $175 during a double points week.

But before you go on a Banana Republic shopping spree, consider the fixed 17.4 percent interest rate you pay if you carry a balance on your Banana Republic or Luxe card.

Don't forget that every store card program has a single aim: tempting you to spend more money. That's why you're alerted to all those "exclusive" sales and previews.

A rewards program, even a good one, is just another way to entice you into spending more money in a particular store.

"Retailers want you to visit the store again and again," says Gerri Detweiler, author of The Ultimate Credit Handbook. "You may end up spending more on things you don't really need or want just to build up rewards."

The trick is to take advantage of store card perks and rewards without going overboard with your spending. Buy things that you need during special sales and pay off your balance every month. If you earn points toward a future reward or discount, that's great.

If you do go overbroad with your spending and find yourself stuck with a hefty balance on a store card with a high interest rate, consider transferring the balance to a lower rate card. Why not snap up a card deal with a zero-percent teaser rate?

Paying zero-percent interest for a year sure beats paying more than 20 percent interest on a store card. For a closer look at those zero-percent credit card offers and tips for making a pain-free balance transfer, check out this article from Bankrate.com.

Co-branded perks
Want store card perks and rewards without the steep interest rate? Look for co-branded store credit cards. Unlike traditional store cards, you can use these cards to make purchases outside a department store or specialty shop. They also tend to have lower interest rates and more robust rewards.

Consider the TJX Platinum Visa card from Capital One. You earn 5 percent rewards when you shop at any T.J. Maxx, Marshalls, HomeGoods or A.J. Wright store and 1 percent rewards when you shop anywhere else. Whenever your rewards dollars reach 10, a $10 certificate is mailed to you.

Spend $200 on your TJX Platinum Visa at a T.J. Maxx store and a $10 certificate will be headed your way. That's not a bad deal. And neither is the 1.9 percent APR you pay on card purchases for the first six months. After that, a fixed 9.9 percent, 12.9 percent or 19.8 percent interest rate kicks in, depending on your credit.

The interest rate on BJ's Platinum MasterCard from First USA is even more impressive. You enjoy a zero percent teaser rate on purchases and balance transfers for six months, followed by a variable APR of 9.9 percent, 11.9 percent or 15.9 percent depending on your credit. It's too bad the rewards on this card are so puny.

You earn just 1.5 percent rewards when you use the card at any BJ's Wholesale Club. When your reward dollars, called BJ's Bucks, total 20, a $20 check is mailed to you. To reach the $20 rewards mark, you'd need to spend about $1,334 at BJ's Wholesale Club.

You also earn rewards when you use the card outside of BJ's, but it's nothing to get excited about. If you carry a balance on your BJ's card, you earn 1 percent rewards on any outside purchases you make. If you pay your balance in full each month, you earn a measly .5 percent rewards when you shop outside of BJ's.

Loyal Nordstrom customers may want to consider signing up for the Nordstrom Platinum Visa instead of a Nordstrom store card. The rewards and the interest rates on the Nordstrom Platinum Visa are a whole lot better.

With a Nordstrom Platinum Visa you earn two points for every dollar you charge at Nordstrom. Once you pile up 2,000 points, you receive a $20 certificate good at any Nordstrom store. True, you'll need to spend $1,000 at Nordstrom before you earn a $20 certificate, but that still beats the $2,000 you would have to spend on a Nordstrom store card to nab the same $20 reward.

Plus, with a Nordstrom Platinum Visa you pay an interest rate of 8.15 percent, 11.15 percent, 15.15 percent or 19.15 percent, depending on your credit. All of those deals beat the 21 percent interest rate you pay on a Nordstrom store card.