EXHIBIT 99.1


[GRAPHIC OMITTED]
  The
CREDIT STORE

CONTACT:          MICHAEL PHILIPPE
                  CHIEF FINANCIAL OFFICER
                  (605) 339-7520

FOR IMMEDIATE RELEASE
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     THE CREDIT STORE, INC. UPDATES LIQUIDITY ISSUES AND SETTLES LITIGATION

SIOUX FALLS -- JULY 9, 2002 -- The Credit Store Inc. (AMEX- CDS) today provided
an update as to its liquidity status and announced the settlement of previously
disclosed litigation.

         The Company is currently engaged in discussions with its various
institutional creditors and possible new sources of funding looking toward
extensions of maturity dates or refinancing of its existing indebtedness. It is
also in the process of negotiating receivable sales. If these discussions and
negotiations are not successful, the Company will be unable to meet its existing
obligations maturing during July and would likely be unable to continue to fund
its operations by the end of the month. There can be no assurance that these
discussions will be successful. Accordingly, the Company is reviewing the
alternatives available to it to preserve its liquidity if its funding
discussions are not successfully resolved this month, including filing a
petition for reorganization under Chapter 11 of the federal bankruptcy act.

         The Company has also settled the Renaissance Trust I litigation
previously described in the Company's filings with the Securities and Exchange
Commission. Pursuant to the settlement, the Company has agreed to pay
Renaissance $4.0 million plus interest over a four-year period. The recording of
this settlement agreement will likely result in the Company reporting negative
net worth. Further, the Company will likely be required to accrue additional
funds as a reserve in connection with a similar dispute with the O.
Pappalimberis Trust.

ABOUT THE CREDIT STORE, INC.
The Credit Store, Inc. is a technology and information based financial services
company that provides credit card products to consumers who may otherwise fail
to qualify for a traditional unsecured bank credit card. The company reaches
these consumers by acquiring their defaulted debt. The Company acquires
portfolios of non-performing consumer receivables and offers a new credit card
to those consumers who agree to pay all or a portion of the outstanding amount
due on their debt. The new card is issued with an initial balance and credit
line equal to the agreed repayment amount. After appropriate seasoning, the
Company seeks to sell or securitize these credit card receivables.

This press release may contain certain forward-looking statements regarding
indicators of future results. Because actual results may differ, readers are
cautioned not to place undue reliance on forward-looking statements. Factors
that may cause our actual results to differ from those projected include: our
ability to achieve positive cash flow from operation, our ability to obtain
additional capital to finance our operations, our ability to sell or securitize
our performing credit card receivables and general economic conditions. These
and other risk factors are more fully discussed in the Company's Annual Report
on Form 10-K for the year ended June 30, 2001. We caution you that the list of
factors above is not exhaustive and that those or other factors, many of which
are outside of our control, could have a material adverse effect on us and our
results of operations. All forward-looking statements attributable to persons
acting on our behalf are expressly qualified in their entirety by the cautionary
statements set forth herein and in our Annual Report on Form 10-K. We assume no
obligation to publicly release the results of any revision or updates to these
forward-looking statements to reflect future events or unanticipated
occurrences.