In https://money.stackexchange.com/q/6842/2640 several people seem to assume that store-based credit cards are a bad idea. What is the reason for that? Is there something about them that I'm missing? ~~EDIT~~ A little background. We just got a Target credit card. We'd moved to a new area a couple years ago, and found that we were doing most of our shopping at the Target right around the corner from where we live. The card is 5% off all in-store purchases except for gift cards. Our other credit cards don't have better than 5% cash back. We never carry a balance, so the rate of the card is a non-issue for us.