Shoppers now can choose between a traditional store card and cards that combine the perks of a private-label credit card with the power of a brand-name credit card.

For example, Target has a Visa card. Sears offers a MasterCard.

The new cards can be used anywhere, not just in the store that issues them, said Tom O'Donnell, a senior vice president at Bank One, which offers co-branded cards for chains including Avon, Starbucks and Borders Group Inc.

"What consumers are looking for in a credit card is the best match between their lifestyle and the rewards they can receive to support their interests," O'Donnell said.

Traditional store credit cards are seeing sales increase in recent years, thanks to more aggressive bonuses like $10 gift cards and special sales just for cardholders.

According to the Nilson Report, a consumer-payment research firm in Oxnard, Calif., purchases on store credit cards have increased 14 percent to an estimated $129.2 billion this year from $112.9 billion in 1999.

But critics say the cards have some of the highest interest rates in the industry and hurt consumers' credit from the moment the account is opened, regardless of how much credit they have.

"There is no reason to have a store credit card," said Steve Rhode, co-founder of MyVesta, a nonprofit consumer education organization in Rockville, Md.

Rhode said a consumer's credit rating drops when he or she has too many lines of credit open at one time.

Lawana Brown of Detroit said she finds store credit cards helpful while shopping, especially with large purchases. The 42-year-old plant supervisor opened a Best Buy account last week to buy a stove.

"At 20 percent, the interest is high," Brown said. "But I make sure my payments are on time."

Store credit cards have been available for decades, providing consumers with an alternative way of paying for purchases instead of using cash or a check.

The cards are relatively easy to get, even for people with poor credit histories. Stores make them tempting, offering incentives at the time customers sign up, like 10 percent discounts, as well as long-term promotions like zero percent financing offers.

"We know customers have lots of credit options," Sears spokesman Bill Masterson said. "So if you're buying a big-ticket item like a refrigerator and you need a discount, you can buy it with a Sears card and have no interest payments."

Historically, store credit cards have been profit drivers for retailers, mostly because stores typically charge higher interest rates on the balances owed.

But retailers are finding that running a credit card company can be a drain.

In recent months, Saks, Sears and Circuit City have sold off all or a portion of their credit card portfolio to raise money and shift the focus to the core business.

Wall Street has been critical of retailers who run their own credit card businesses because of the number of delinquent accounts.