How Shop Your Way Payment Works and What It Costs

What Shop Your Way Payment Is

Shop Your Way Payment is a store card issued by Synchrony Bank that you use at Sears, Kmart, and Sears Home & Life stores. When you use it, the purchase goes on your card and you receive a bill from Synchrony, not from Sears directly. The card also earns rewards points that you can redeem for discounts on future purchases at those same stores.

The card works like any other store credit card: you swipe it at checkout, the merchant sends the transaction to Synchrony, and Synchrony charges your account. Your monthly statement comes from Synchrony, and you send your payment to Synchrony. The rewards program is built into the card—you don't sign up separately or enter codes. Points accumulate automatically on every purchase.

Key Takeaways

• Shop Your Way Payment is a Synchrony Bank credit card used only at Sears, Kmart, and Sears Home & Life stores, and you receive your bill and make payments to Synchrony, not to the store.
• The card charges interest on unpaid balances, and the interest rate (APR) varies based on your credit score and history, so you should ask Synchrony what rate you will receive before you accept the card.
• Rewards points accumulate on every purchase and can be redeemed for store discounts, but points have no cash value and expire if you don't use them within a set period.
• Late payments to Synchrony damage your credit score and trigger late fees, so setting up automatic payments or calendar reminders reduces the risk of missing a due date.
• The card is only useful if you shop regularly at these three store chains; if you don't, the rewards don't offset the interest cost and annual fees if any apply.

How Interest and Fees Work on This Card

Shop Your Way Payment charges interest on any balance you don't pay in full by the due date. The interest rate (called the APR, or annual percentage rate) is not fixed—it depends on your credit score, payment history, and income. Synchrony will tell you the specific APR when you open the account, and it appears on your monthly statement. If you carry a balance from month to month, interest compounds daily, meaning you pay interest on the interest.

The card may also charge an annual fee, though this varies. Some versions of the card have no annual fee, while others charge a small yearly amount. Check your cardmember agreement or call Synchrony at the number on the back of your card to confirm whether your specific card has an annual fee. Late payments trigger a late fee, typically $25 to $40 depending on how late the payment is, and a late payment also damages your credit score for up to seven years.

How Rewards Points Work and What They're Worth

Every dollar you spend on Shop Your Way Payment earns points automatically. The exact earning rate varies—some purchases earn more points than others, and Synchrony occasionally runs promotions that double or triple points on certain categories. You don't need to register for these promotions; they apply automatically if you're a cardholder.

Points have no cash value. You can only redeem them as discounts on future purchases at Sears, Kmart, or Sears Home & Life. For example, 100 points might equal a $5 discount on your next purchase. Points expire if you don't use them within a certain time frame—typically 12 to 24 months of inactivity, though you should confirm this with Synchrony. If you stop shopping at these stores, your points will eventually disappear, so they only have value if you plan to return.

When This Card Makes Financial Sense

Shop Your Way Payment is worth using only if you shop regularly at Sears, Kmart, or Sears Home & Life and you pay the full balance every month. If you pay in full, you avoid interest charges entirely, and the rewards points become pure savings. For example, if you spend $1,000 a year at these stores and earn points worth $50 in discounts, you've gained $50 with no cost.

The card becomes expensive if you carry a balance. If you spend $1,000 and pay interest at 20% APR on half of it, you'll pay roughly $100 in interest over a year—far more than the $50 in rewards. Store cards typically charge higher interest rates than general-purpose credit cards, so comparing the APR to what you'd pay on a Visa or Mastercard is worth doing before you open the account.

How to Manage Your Account and Avoid Debt

The safest way to use Shop Your Way Payment is to treat it like a debit card: only charge what you can pay off in full when the bill arrives. Set up automatic payments through Synchrony's website or app so the full balance pays automatically on your due date. This removes the risk of forgetting and incurring late fees or interest.

Check your statement every month, even if you set up automatic payments. Verify that all charges are yours and that the payment went through. If you notice a charge you didn't make, contact Synchrony immediately—the sooner you report fraud, the sooner they can investigate. Keep your contact information current with Synchrony so you receive statements and payment reminders on time.

What Happens If You Miss a Payment

If your payment arrives after the due date, Synchrony charges a late fee and reports the late payment to the three credit bureaus (Equifax, Experian, and TransUnion). A single late payment can lower your credit score by 50 to 100 points, depending on how late it is and your overall credit history. Late payments stay on your credit report for seven years, affecting your ability to borrow money at good rates.

If you fall behind by 30 days or more, Synchrony may freeze your account, preventing you from making new charges. If you fall behind by 60 days or more, the account may be sent to a collection agency, and you could be sued. If you're struggling to pay, contact Synchrony before the payment is due—some cardholders can negotiate a temporary lower payment or a hardship plan.

Comparing Shop Your Way Payment to Other Store Cards

Store cards like Shop Your Way Payment typically offer higher rewards rates than general-purpose cards, but they also charge higher interest rates and work only at one retailer or chain. If you shop at multiple stores, a cash-back credit card (like a Visa or Mastercard) gives you rewards everywhere and usually charges lower interest. If you shop almost exclusively at Sears or Kmart, the store card's rewards may outweigh the higher APR—but only if you pay in full every month.

Another option is to use a general-purpose rewards card at these stores and skip the store card entirely. You'll earn fewer points per dollar, but you'll avoid the higher interest rate and the risk of overspending because you have a store-specific card. The choice depends on your shopping habits and your ability to pay the full balance monthly.

Frequently Asked Questions

Can I use Shop Your Way Payment at stores other than Sears and Kmart?

No. Shop Your Way Payment works only at Sears, Kmart, and Sears Home & Life. If you try to use it elsewhere, the transaction will be declined. If you need a card that works everywhere, you'll need a different credit card.

What's the difference between Shop Your Way Payment and a regular Sears gift card?

A gift card is prepaid money you load once and spend down. Shop Your Way Payment is a credit card that you can use repeatedly, and you pay Synchrony a bill each month. The credit card earns rewards points; a gift card does not. The credit card builds your credit history if you pay on time; a gift card does not.

Do I lose my rewards points if I close the card?

Policies vary, so check your cardmember agreement or call Synchrony. Some issuers let you redeem points after closing; others cancel unused points when the account closes. If you have a large balance of points, redeem them before you close the account to be safe.

What should I do if I can't pay my full balance?

Contact Synchrony before your payment is due. Explain your situation and ask whether they offer a hardship plan or temporary payment reduction. Paying something on time is better than paying nothing late. If you're in financial hardship, Synchrony may work with you rather than send your account to collections.

How do I check my rewards balance?

Log into your account on Synchrony's website or mobile app, or call the customer service number on the back of your card. Your rewards balance also appears on your monthly statement. Some statements show how many points you've earned and how many you have available to redeem.