Branded benefits: How consumers can make private label credit cards work for them

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When it comes to shopping for anything, big or small—from furniture to apparel—consumers have a few options to get the goods they need. They can use cash to pay in full, pay with a general-purpose credit card, use digital payment options (think: PayPal and Apple Pay), or apply for a store-branded private label credit card.

The first option requires actually having that cash on hand. The second allows some financial flexibility, but doesn’t typically come with any special benefits or provide the opportunity to earn rewards. The third is a convenient, mobile solution that serves the needs of today’s consumer. And the fourth gives consumers an alternative that may come with exclusive benefits—and an opportunity to earn rewards, depending on the retailer.

A store-branded credit card—or a private label credit card—can help qualifying shoppers take advantage of brand promotions and may sometimes offer special financing options to pay off the balance of those big purchases over time. A private label credit card can also help shoppers earn serious in-store rewards. But like any smart financial decision, education is key.   


  • Before applying for a private label credit card, understand what it means.
    Some private label credit cards give qualifying shoppers the option to finance purchases or offer special perks and benefits for being a loyal customer. The credit card can only be used at a particular brand’s retail stores.


  • Private label credit cards can help build a stronger credit profile.
    It’s important that consumers use private label credit cards responsibly. On-time payments are crucial to keep your account in good standing. Issuing banks that service credit card programs, like Comenity Bank, report to the credit bureaus. So, if consumers keep their credit card account in good standing, they can use private label credit cards to help bolster their credit score.


  • Find out if the retailer offers special financing.
    For qualifying cardmembers, special financing may be available. Make sure to read the credit card agreement for more details and to learn more about the terms and interest rates.


  • Take advantage of brand benefits.
    What private label credit cards offer over conventional credit cards is the brand-specific rewards. Frequency matters, of course. Regular shoppers of the brand can earn rewards and special offers exclusive only to cardmembers. And that can lead to significant opportunities for savings.


Looking for more tips for better credit and money management? Check out Comenity’s financial resources.

This page and the information contained herein is for educational purposes only. The information is not intended to provide legal, investment, or financial advice or to indicate the availability or suitability of any product, service or strategy to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any links to other websites are included for your convenience only. Comenity does not endorse any product or service, and is not responsible for the accuracy or reliability of the information, made available through such sites.