The offer of a big discount can make it quite tempting to sign up for a retailer’s credit card.
Be cautious, though: High interest rates and low spending limits mean that store cards aren’t always the best deal for consumers. However, if you visit the store often, aren’t worried about a temporary ding to your credit score and plan to pay off the balance in full right away, there are several store cards with rich rewards that are worth a look.
Related: The 20 Most Expensive Shopping Streets in the US
WalletHub analyzed the current offers from more than 100 retailers to determine which have the most favorable terms right now.
These are the top five store cards for 2016, according to WalletHub:
* Amazon.com: $10 initial bonus, plus 5 percent cash back on all purchases.
* Toys R Us: 15 percent off first purchase, plus 2 points for every $1 spent (125 points =$5).
* TJX: 10 percent off first purchase; 5 points per $1 spent (1,000 points = $10).
* GAP: 15 percent off first purchase; 5 points per $1 spent ($500 points = $5).
* Target: 5 percent back on all purchases, plus free shipping and 30 extra days for returns.
The average store credit card that offers rewards provides a 19 percent discount, and 2.9 percent off future purchases. Nine in 10 store cards do not have annual fees.