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Why Do Retail Stores Have Private Label Credit Cards?

February 3rd, 2020 | 4 min. read

By Steve Sheinkopf

Ever wonder why every company you shop at is trying to push its own store credit card?

Like us, for example? 

The Yale Card

Whether you buy a blouse or a Thermador kitchen with your credit card, every store will have the same problem - accepting credit cards. This issue is becoming a more significant problem every year.

Here's that Thermador kitchen you're going to put on your credit card, for example:


In this article, we will tell you what that problem is and how to use it to your advantage (even if it’s against us).

Then you'll read about our plans and other stores' to solve this problem. At the end of this article, you will understand the dynamics of credit cards and how to incorporate this into your purchases to save money (in some cases, lots of it).

Your Credit Card Then And Now

Your father and grandfather mostly likely had the first bank cards from Baybank or Bank of Boston decades ago. My first credit card was from Shawmut Bank back in 1982. I was so proud.

However, your card is now probably JetBlue MasterCard or a Disney Visa, for example. I have a Marriott Card from Visa. Almost every card has reward points, whether its flights, rooms, or other perks.

Thirty years ago, the bank would charge a store 1.5% because it was just a transaction. Now your points cards can cost a store an additional 2.7-3.5% depending on the purchase.

In the appliance business, 15% of the profit can be lost on a card swipe for many appliances.

That is important for you to remember as a consumer with that credit card. 

Private Label Store Cards

Store cards are all underwritten by three companies, CitiFinancial, Wells Fargo, and Synchrony Bank (used to be GE).

They charge stores anywhere from 0% - 0.99%, which is significantly less than a credit card. When you look at tons of transactions, 2-3% adds up to be a ton of money.

That’s why you will always get 10% off or some other freebie to open a store credit card.

What the store is hoping you will do is to continue shopping with their store card instead of your regular credit card going forward. 

Read the Fine Print

Store cards usually have great opening offers. However, they should only be used if you can pay the balances.

Interest rates can be as high as 27% for private label store cards, depending on where you live. It’s almost impossible to pay off with that kind of interest being charged.

Regular credit cards are typically a bit less, but not much. In fact, credit cards, in general, should be paid off monthly. 

The Yale Card

We paid over 2 million dollars to credit card companies in 2019.

That’s enough to match the company contribution to medical at l 1.6 million for staff and more than doubled our charity outreach at $400,000.

I think about it in those terms.

So rather than paying the banks, we will give you a better option and more on an ongoing basis. 

The Yale Card

Apply now for the all-new Yale Card by clicking here. 

Here are the top five benefits we are introducing with the new Yale Card:

1. Free, Great Delivery on purchases over $799

Sure, everyone advertises free delivery, but it's never really “free.” There's always a charge for removal, stairs, removing packaging, and basic installation. 

Our delivery will include:

  • Removing your old appliance
  • Connection of your new electric range, dryer, freestanding refrigerator with existing fittings
  • Delivering up to 2 flights of stairs is included
  • Removing of product packaging and boxes
  • Protecting your floor with Masonite to avoid damage

We’re not just dropping it off at your door. By the way, we only have a 2-hour window, and you can track the truck right to your house within thirty minutes. 

To learn more about our delivery policy, click here. 

2. 10% off Yale Backed Warranties

You can now buy warranties at 10% off and still get 50% back at the end of the warranty if it's unused. In case you do need service, we have 33 trained service technicians to fix your appliances.

Here is the team that will do it: 


Yale Appliance Service Team

3. Early Access to Tent Sales and Outlet Sales

The average discount is 20-60% on perfectly good appliances at our Outlet and Tent Sales. In fact, the two sales lasted 39 and 57 minutes last year. The average product sold was about $1,100, meaning you could save $400 on average per product. 

As a Yale cardholder, you get early access before anyone. 

Subscribe anytime for our sales and events notice by clicking here. 

4. 5% off Outlet

The outlet in Dorchester is customer returns, floor displays, and overstock at discounted prices. You will save another 5% on top of using the Yale card. 

5. Cardholder Specials

There will be specials periodically for cardholders only.

If you're remodeling or need appliances or kitchen plumbing, click here for all of our benefits to the Yale Card. 

That’s it (for now). We are doing what every store is trying to do - namely, to get you out of the habit of reaching for your points card and offering more value for you at less cost for us.

Should You Use A Private Label Store Credit Card?

That all depends on what the advantages are. If the store isn’t offering any incentives, use your points card.

Then you should weigh the advantages of that store versus the points advantages.

For example, I am a Platinum Points member for Marriott (whatever that means), and I've had free hotel nights over 3+ years. The real value is about $600-900 per year.

For what we sell, you should consider our card. You save the $79 delivery and another $30 on the warranty. If you go to the outlet, you will save $400 plus the other benefits.

These are just single purchases. There is more when you buy more.

You also have a flexible payment options like 6 months of minimum payments versus 30 days for a credit card.

Credit has become a big problem for all of us, stores and people. It's starting to be prohibitive to accept as a business and to pay the interest as a person.

So choose wisely.

Additional Resources 

Want more information on appliances? Get the Yale Appliance Buying Guide with features, specs, buying strategies, and the answers to the top 10 appliance questions. Well over 620,000 people have read and trusted a Yale Guide.

View our appliance buying guide

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Steve Sheinkopf

Steve Sheinkopf is the third-generation CEO of Yale Appliance and a lifelong Bostonian. He has over 38 years of experience in the appliance industry, and he is a trusted source of information for consumers on how to buy and repair appliances.

Steve has also been featured in numerous publications, including the New York Times, Consumer Reports, The Boston Globe, Bloomberg Radio, the New York Post, The Wall Street Journal, and Entrepreneur, for his knowledge of how to buy appliances and appliance repair.

Steve is passionate about helping consumers find the best appliances for their needs, and he is always happy to answer questions and provide advice. He is a valuable resource for consumers who are looking for information on appliance buying, repair, and maintenance.

Despite being the worst goalie in history, Steve is a fan of the Bruins and college hockey, loves to read, and is a Peloton biker. The love of his life is his daughter, Sophie.

A Note About Pricing

Pricing on this blog is for reference only and may include time sensitive rebates. We make every attempt to provide accurate pricing at time of publishing. Please call the stores for most accurate price.