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Why do store credit cards have such high APRs?

By CardTerms editorial team · 2026-06-25

In short: Store/retail-card issuers like Synchrony and Comenity reported the highest purchase APRs in the CFPB survey - frequently between 30% and 36%. They're approved with looser credit standards, are rarely your primary card, and lean on deferred-interest promotions, so issuers price in the risk.

Look at the highest-APR ranking and you’ll see the same names at the top: store and retail-card issuers like Synchrony, Comenity and Bread Financial. In the CFPB survey their maximum purchase APRs frequently sit between 30% and 36% — well above the roughly 21% national average.

How high, exactly

IssuerTypeSurveyed purchase APR (max)
Comenity BankStore / retail-cardup to ~35.99%
Synchrony FinancialStore / retail-cardup to ~34.99%
Comenity Capital BankStore / retail-cardup to ~34.99%

(See the live figures on each issuer page.)

Why they’re so expensive

  1. Looser approval. Store cards are designed to approve more applicants, including thinner or rebuilding credit — so the issuer prices in higher default risk.
  2. Not your main card. They’re typically used occasionally at one retailer, so issuers can’t rely on broad, low-risk spend.
  3. Deferred interest. Many run “0% if paid in full by [date]” promos. Miss the deadline by a dollar and interest is charged retroactively on the whole purchase at that 30%+ rate.

When a store card makes sense

Only if you’ll pay the balance in full every month and the rewards or financing clearly beat your everyday card. The moment you carry a balance, a 30%+ APR usually erases any discount. If you need to revolve a balance, a credit-union card capped at 18% is far cheaper — see the big banks vs credit unions breakdown.

Run the numbers yourself: a $1,000 store-card balance at 32% versus a credit-union card at 16% in the payoff calculator.

Sources

CFPB Terms of Credit Card Plans survey. Surveyed terms, not offers - verify with the issuer.

Frequently asked questions

What is the highest credit card APR in the CFPB survey?

Store-card issuers top the list. The highest reported maximum purchase APR was around 35.99% (Comenity Bank), with several Synchrony and Bread/Comenity products near or above 34.99%.

Are store cards ever worth it?

Occasionally, if you pay the balance in full every month and the rewards or financing genuinely beat your everyday card. If you ever carry a balance, the 30%+ APR usually wipes out any perk.

What is deferred interest?

A '0% if paid in full by X' promo where, if any balance remains at the deadline, the issuer charges interest retroactively on the entire original purchase. It's a common store-card trap.

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Last updated: 2026-06-25