What You Need To Know About Old Navy's Navyist Credit Card

If you're an avid shopper and are looking to build your credit while also cashing in on some deals at your favorite stores, then maybe you should consider a rewards-based credit card. There are plenty of companies that offer store credit cards to their shoppers, and these typically come in two types: closed-loop and open-loop. There are many similarities between the two, as well as major differences, and it's always important to read the fine print of any type of financial lending card before you apply for it.

Closed-loop credit cards are unique in that they can only be used for purchases at a particular store or family of stores. These cards will look just like a normal credit card (only, they'll feature the name of the store where the card can be used) and carry a set spending limit. With an open-loop credit card, it'll look a lot like the closed-loop version (featuring the store logo); this card, however, will have a major lender backing it, such as Visa, Mastercard, or American Express.

Because of this, an open-loop store credit card is exactly the same as a traditional lending card where you can use it anywhere the payment network is accepted. The added bonus with this type of branded credit is that you may collect specific reward points every time you make a purchase. Now let's take a look at Old Navy's Navyist credit card and how it might be a good option if you already frequent Old Navy, Athleta, Gap, and/or Banana Republic.

The difference between Old Navy's Navyist credit cards

Old Navy offers two types of reward credit cards to shoppers and both come with bonuses for fans of their clothing outlets. First of all, the Navyist credit card can be used online or in-store only at Old Navy and its family brands such as Gap, Banana Republic, and Athleta. However, the card does come with benefits. You get 30% off of your first purchase with the card, free shipping on online orders that are over $50, and no annual fee. You also earn five points for every $1 spent at any of Old Navy's affiliated brands, according to Old Navy. Although there's no sign-up fee to get the card, you should know that it currently comes with a 25.99% variable annual percentage rate (APR) and you could be charged up to $41 for every late payment or payment that's returned.

When applying, the company considers you for the Navyist Mastercard first and if you're not accepted for that, then you're enrolled in the Navyist credit card instead. To earn the Mastercard version of this rewards-based program you must have a good credit score, just like you should when being considered for a traditional credit card. The Navyist Mastercard carries all the same benefits as the other store card, however, now you can use it outside of the branded stores, wherever Mastercard is accepted.