[S]tore credit cards are nice for a lot of users. They often come with special perks and rewards. You may get an added discount or special coupons on sales. You may gain points that can be used towards purchases. However, these benefits only work as long as your store is open. What happens to your card if the store closes?
If the store had multiple locations, you may be able to use your card at other locations or even online. In this case, nothing will change with your account. You just won’t have the option of shopping your local store. You may end up with shipping charges on your purchases though if online is your only option.
In some cases, the store may have been part of a family of brands. In this situation, you may be able to shop at the other associated brands with the same card. You may receive a new card to another store to replace this card. If this is the case, any rewards you had earned may or may not be transferred, but the rewards program may go away.
You No Longer Have a Card
If the entire company is gone, you may no longer have a working credit card. Your account will be closed. Realize that this may have a negative effect on your credit score even though it was not closed due to anything you did wrong. You will still have to pay the balance off in full or it will hurt your credit.
You can replace the card with a new one if you apply and are approved. Of course, this will also lower your credit for a while because of the inquiry from the new creditor. However, it will give you a new card with more available credit which can help offset the loss of the other card.
Most financial experts advise people to focus on major credit cards rather than store credit. However, you should know the impact if you choose to own one of these cards.
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