You've Been Warned: These Popular Retailer Credit Cards Are Simply Terrible

In today's economy, building credit is a necessity, particularly with both prices and interest rates staying high. This is particularly important for young people, with multiple great ways to strengthen your credit through your 20s tied to credit cards. While there are some favorable cards for people building credit, there's one kind that will undoubtedly pose a considerable risk. 

As Bankrate reported in late 2025, while annual percentage rates (APR) on many cards have gone down with Fed cuts, retail cards remain unprecedentedly high, with an average APR above 30%. The Federal Reserve reported in the third quarter of 2025 that credit card delinquency rates are on the way down after spiking to 3.22% in mid-2024. The total amount of debt held by Americans has increased over the same time period, reaching over $18 trillion according to the Federal Reserve Bank of New York. This debt is expected to increase in the final quarter of the year, driven by holiday retail shopping with predatory retail credit cards. While any retail card is a red flag, brands such as GameStop, Zales, DICK'S Sporting Goods, and T.J. Maxx offer some of the worst. The main issues here are APR, poor rewards programs, and some form of deferred financing – which can act as a Trojan horse for unsuspecting debt.

The TJX Rewards Card is offered by TJX Companies Inc., a house of brands that includes TJ Maxx, Sierra Trading Post, Marshalls, and HomeSense. Best known for its cost-saving approach while offering gift selections at a low price for the season, the company is heavily advertising its credit card. Those on a holiday spending spree may be incentivized by getting 10% off their first purchase when signing up for the card, but that is basically the only incentive. Those who sign up for the card to ease the costs of a holiday purchase are in for a rude awakening, as the TJX Rewards Card has an APR of 30.74% with an even higher penalty for missed payments.

The card falls prey to a common issue with its reward points. Its points structure is highly limited, as rewards can only be applied to purchases made with the company. Additionally, points are worth just one cent, with cardholders earning only five points on $1 purchases from TJX stores and a measly one point outside the house of brands. Ultimately, this lends itself to a card that levies massive penalties with minimal rewards.

Signing up for a GameStop credit card might be like buying into a ship that is actively sinking, similar to signing up for a Big Lots or Sears credit card. The once-major retailer shut down hundreds of stores across the nation in 2024 and has been facing financial issues for over a decade. To make things worse, the card holds little value in the form of returns on risk, as many of the advertised perks are tied to GameStop's own Pro program. Those who sign up for the card get a free year of it, but they're automatically charged $25 for the following year.

The credit card earns points only on purchases at the struggling store. Plus, those without a Pro account would need to spend vast sums to earn enough points just to buy one game. The card also has a 35.99% APR, making simply buying into GameStop Pro less risky and almost just as rewarding for gamers.

The Zales Credit Card is clearly targeted at individuals who hope to buy diamonds without incurring immediate costs. The value of the card is in the "special financing", which is basically another word for deferred interest. Zales advertises that cardholders who make larger purchases receive longer periods of deferred interest, with individuals who spend more than $1,500 receiving a 36-month special financing term. The red flags here are that purchases must be made with the card, and in a single transaction.

While holding this card may be lucrative for upper-class individuals, who surprisingly make this credit card choice more often, failure to pay within a financing term is devastating. If you were to buy an engagement ring from Zales using this card and fail to pay it off in 36 months, the card's terms of use reveal that the APR would be 35.99%. To make matters worse, Zales doesn't list this APR on the webpage where one signs up for the card.

On the surface, the Scorerewards card is a friendlier option than others on this list, with a 30.74% APR. Even so, the card sounds major alarm bells, as it offers similar deferred financing options to Zales, with 12-month, 18-month, and 24-month terms. Consequently, the card falls into the same traps as those who make significant purchases with it and can quickly accrue debt. 

This is made worse by the points structure, which highly incentivizes spending at DICK'S stores, offering nearly 6% back on most store purchases. However, redeeming points is hard, with $150 of expenditures getting you just a $10 certificate, which cannot be applied to financed purchases. These certificates are also tied up in red tape with limits on the number you can earn both each month and online. Ultimately, the card creates a feedback loop, only letting you earn points from purchases at the store, and only letting you redeem rewards there, too.