Where else can you get a shirt you'd actually wear for $5 or an entire outfit for less than $30? People love Old Navy for its stylish clothes at low prices. The store also has its own branded credit cards. Like most stores that have one, you’re likely to get the sales pitch for a card at the checkout. Should you say yes?

Not One Card – Two

Old Navy offers two similar but different cards. The Old Navy store card is easy to get, but if your credit is exceptional, you might qualify for the Old Navy Visa card. Both come with similar benefits. The Visa card, however, allows you to earn rewards at any place your Visa card is accepted. The store card is only accepted at Gap stores.

The Bank

The cards aren’t offered by Old Navy’s parent company. Synchrony Bank (SYF) is the card issuer. Synchrony Bank, once known as GE Capital Retail Bank, is owned by General Electric.

The company found itself in some legal hot water because of questionable financial practices, but settled the case with the Consumer Financial Protection Bureau and the Department of Justice in June 2014. It might help to know that company turned itself in rather than hoping regulators wouldn’t find out.

The Card

Since Old Navy is owned by Gap (GPS), your card is good at all Gap owned stores – Athleta, Banana Republic, Gap and Piperlime. Receive a $5 reward card for every $100 you spend at any Gap store or online. For any purchases outside of Gap stores with your Old Navy Visa card, you receive one point for every $1 you spend. Once you earn 500 points, you receive a $5 reward card for redemption at any Gap store. 

When you sign up for the card you earn 2,000 bonus points and 15% of your purchases that day.

You will also receive advanced notice of sales and offers that are good on or around your birthday.

The Fine Print

The annual percentage rate is a pricey 23.99% for the Visa (24.99% for the Old Navy store card), but will vary based on the prime rate. Don’t expect the special introductory rate that some cards offer. However, there is no annual fee. 

If you pay late, you'll be charged between up to $35 based on payment history, but there is no penalty APR. If you use your Visa card outside of the United States, you will pay a 3% foreign transaction fee. If you’re a frequent international traveler, there are better cards to have in your wallet than this one.

Cash advances for the Old Navy Visa card cost $10 or 4%, whichever is greater, and an APR of 25.99% applies (see How A Cash Advance Works). If you have a store card, cash advances aren’t available.

The Bottom Line

As a general rule, store cards are bad for your bank account. With high interest rates and rewards that are tailored to the specific store, you can easily find cards that aren’t store-specific that have better terms. Check your bank and read Find The Top Cash Back Credit Cards to find cards that have APRs that are 6% to 10% lower in some cases. On the other hand, if you are trying to build back your credit, the Old Navy store card could be a way to get started (see How To Improve Your Credit Score).

Finally, don’t carry a balance. With an either 23.99% or 24.99% APR, and a less-than-ideal rewards structure, any interest payments you make will wipe out the value of your rewards.