Comenity (Bread Financial) Credit Cards

About Comenity Credit Cards

Comenity Bank is one of the largest issuers of co-branded retail credit cards in the United States. The bank, a subsidiary of Bread Financial (formerly Alliance Data Systems), isn’t the most recognizable name to those unfamiliar, but Comenity offers approximately 100 co-branded store cards with some of the most recognizable brands in the country, including the Victoria Secrets credit card.

Comenity cards come in two distinct varieties: open-loop and closed-loop. Open-loop credit cards feature a payment network like Visa, Mastercard, or American Express. These cards are usable almost anywhere the payment network is accepted.

Closed-loop credit cards lack a payment network. These cards are also known as private label or store cards, meaning they can only be used to make purchases with the brand – either in-store or online.

What Brands Offer Credit Cards Through Comenity?

As noted, dozens of brands offer co-branded retail cards through Comenity. The following is an example of the variety of open-looped credit cards available through Bread and Comenity Bank:

Beyond the Visa and Mastercard editions of cards with major brands, Comenity also offers many retail cards that are only for in-store or online use with that retailer. Store cards (the closed-loop variety) are a great way to access unsecured credit. This is because store cards have lower credit application rules than cards branded with the Visa, Mastercard, or American Express networks.

Here is a brief selection of examples of closed-loop store cards from Comenity:

There are additional credit card types through Comenity, including proprietary credit cards (the Comenity® Mastercard® and the Bread Cashback™ American Express®), plus credit cards tailored towards the following sectors:

• Health & Wellness
• Travel, including hotel and resort credit cards
• Home & Lifestyle
• Automotive
• Medical
• Educational

Common Features of Bread and Comenity Cards

There are common features to many of the Comenity and Bread credit cards. These factors typically include comprehensive protections from fraud through American Express, Mastercard, Visa, and many of the following:

Comenity Bank issues credit cards through four payment networks. These networks include co-branded credit cards that offer Visa, Mastercard, and American Express protections. The bank also issues store cards, which can only be used for purchases from a specific store or a family of brands. The bank formerly issued a co-branded Discover Card, the True Value Discover® credit card, but that card is no longer available to new applicants.

What are the Benefits of Comenity Credit Cards?

Since the majority of Comenity cards are retail or store cards, they are excellent options for those looking to build credit. Generally, retail credit cards have lower credit score requirements, meaning those with fair or average credit scores can apply.

Those with average credit scores also have better acceptance odds with Comenity because retail cards tend to have lower credit limits. These reduced lending risks make Comenity card options ideal for those trying to build their credit. With on-time payments and responsible usage, Comenity offers a straightforward route to better credit card offers in the future.

Store Rewards

Retail cards, like Comenity, earn rewards with the brands that issue the cards. Comenity cards are great for those who prefer to shop at specific brands and want to earn rewards with every purchase. Store cards also offer in-store discounts, savings on shipping, and other perks, which can provide significant value for loyal shoppers.

Drawbacks of Comenity Bank Credit Cards

Because they are retail cards, Comenity Bank credit cards also have some disadvantages. These shortcomings include:

Limited Acceptance: Store cards and closed-loop credit cards only work with one retailer. If a Comenity Bank Card lacks the Visa, Mastercard, Discover, or American Express logo, cardholders will find limited acceptability.

Higher APRs: Because store cards are available to a broader selection of credit scores, they have higher-than-average interest rates. The average APR for a store card is in the high 20s, with some rising above 30%. These high interest rates make Comenity Bank credit cards ineffective for those who may frequently carry a balance.

Low Rewards Flexibility: Because retail credit cards – and especially closed-loop store cards – are tied to a store’s rewards program, there are fewer redemption options versus an open-loop store card that allows other options like cash back, statement credits, or travel purchases.

Are There Other Alternatives to a Comenity Store Card?

Bread/Comenity is just one issuer of co-branded store cards. Several other store card issuers include big names like Citi, TD Bank, and Chase. Another major issuer of co-branded retail cards is Synchrony, which offers cards from brands like the Sam’s Club® Mastercard®, Amazon Secured Store Card, Belk Rewards, TJ Maxx, and more