Dear Clever Credit,
I applied for and got the Kohl’s Credit Card during the holidays for the 35% off promo. But now that the holidays are over, I’m not sure what to do with the card. Help!
Signed,
Buyer’s Remorse
Dear Remorse,
I totally get it! Those sign-ups at checkout will get you. Kohl’s was one of many department stores that offered a seasonal promotion to encourage customers to sign up for a retail store credit card. But now that the holiday haze has cleared, many consumers — including you — are left with new credit cards that they don’t really know what to do with.
The Kohl’s Credit Card is one option for consumers who frequent the department store. It has no annual fee and you can earn 7.5% in Kohl’s Cash on Kohl’s purchases. But the perks don’t really stack up when you take a closer look. As a Kohl’s Rewards member, you already earn 5% in rewards on purchases. So you’re technically only earning 2.5% in rewards with your Kohl’s card. Plus, certain brands are excluded from earning Kohl’s Cash — like Sephora.
Also, annual percentage rates on store cards tend to be higher than traditional credit cards. For example, according to the Federal Reserve, the average APR on new credit cards was 21.47% in November 2024. The variable APR on the Kohl’s card is 30.24%.
So, if you find yourself stuck with a store card you don’t think you’re going to use anymore, my advice would be to close it and replace it with something else (if you’re still in the market for a credit card). Your credit score shouldn’t suffer too much since you only just recently opened the Kohl’s card. If you’re after 2% back, I recommend credit cards you can use everywhere, not just at one store. Options include the Wells Fargo Active Cash® Card, Citi Double Cash® Card or even the Capital One Quicksilver Cash Rewards Credit Card. The Wells Fargo Active Cash® Card and Citi Double Cash® Card both earn a flat rate of 2% cash back on all purchases, no matter the store. Neither has an annual fee, and you only need a fair credit score to qualify for the Double Cash.
The Quicksilver has no annual fee and earns a flat rate of 1.5% cash back on all purchases Capital One Quicksilver Cash Rewards Credit Card, so the rewards rate is a little lower. However, you can use the card anywhere, and you’ve already established a relationship with Capital One since they’re partners with Kohl’s. The variable APR on all three of these cards is also lower than the Kohl’s card.
So, if you’re comfortable, I recommend one of these alternatives or another similar credit card. If you’re not sure which one best suits you, compare your favorites with our compare tool. Don’t pigeonhole yourself when it comes to credit card rewards!
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Dear Clever Credit: I Got the Kohl’s Credit Card for the Holidays. Now What? originally appeared on usnews.com
