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Store cards

The last post in this topic was posted 2476 days ago. 

 

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How many of these cards are considered too many?

 

 

 

 

 

I have always read not to get too many as they do not help fico much and that because they generally have low limits that this sets you up to continue to only get these low limits even when applying for visa/mc/ discover/ amex.

Edited by parisamour

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I myself have the Amazon store card -- got it way before getting the proper visa one -- and the wally world one. Both are GECRB, with $6K and $2K limits respectively. Interest rates on them are worst than in my normal cards, so there is that incentive to PIF. That said, the Amazon does offter the 6 month no interest for purchases of I think $150 or more, and I've had it for a few years. And the wally world offers free TU Fico 08, which is my main reason to have it.

 

Honestly I think I have about as many store cards as I would want.

 

FYI, originally I think my Amazon was like $600 and the Wal Mart one $700. Calling the GECRB backdoor/whatever helped me raise them; I've never had any luck with the love button.

 

If you already have store cards, keep them primarily for AAOA, specially if they have no AF. Then every few months buy something cheap or buy and return an item just to show activity.

Edited by SmellyMonkey

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I myself have the Amazon store card -- got it way before getting the proper visa one -- and the wally world one. Both are GECRB, with $6K and $2K limits respectively. Interest rates on them are worst than in my normal cards, so there is that incentive to PIF. That said, the Amazon does offter the 6 month no interest for purchases of I think $150 or more, and I've had it for a few years. And the wally world offers free TU Fico 08, which is my main reason to have it.

 

Honestly I think I have about as many store cards as I would want.

 

FYI, originally I think my Amazon was like $600 and the Wal Mart one $700. Calling the GECRB backdoor/whatever helped me raise them; I've never had any luck with the love button.

 

If you already have store cards, keep them primarily for AAOA, specially if they have no AF. Then every few months buy something cheap or buy and return an item just to show activity.

 

IMHO the only reason to have store cards are:

 

(1) You can't get approved for a major (although this is generally untrue for anyone... get a secured MC or V instead);

(2) There are tremendous discounts that are only available by using the store's card, AND those discounts vastly out-value the rewards you could get with a major credit card. Even my CU secured card offered rewards. Tepid rewards, but rewards! Note that this has nothing to do with your credit per se... it's more a spending preference.

 

Whenever possible if you MUST get a store-branded card for reason (2), generally speaking, for your credit, you will be better served in the long-run to get the MC/V/AE/D version of the merchant's credit card (PayPay Extras MasterCard instead of the SmartConnect account; the Macy's American Express instead of the Macy's store card, etc.).

 

I still have three store cards, and I can only defend keeping one of them. I have the other two for age and nostalgia purposes.

Edited by cv91915

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I would say no more than 2, and choose them wisely. Something like GECRB's Amazon card is a good one because it's known to get higher limits. I also have the J. Crew credit card from Comenity through the no-hard pull shopping cart trick. It's slowly growing, but it's still my second smallest credit line. The benefit is I can keep requesting CLIs without having a hard pull.

 

Do your research before choosing.

Edited by jonson

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I agree with jonson, two is enough.

 

I recommend you only get a card from a favored store that you will shop at often, and whose use provides some type of reward (store gift certificates from Nordstrom, discount savings passes from Macy's, extra sales from Banana Republic, free shipping from Williams-Sonoma, etc).

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Yes, a lot of low limit store cards can keep you from getting higher approvals. Make sure it serves a purpose before getting it and that you are not just trying to add as many accounts to your credit reports as possible.

 

I have 2 store cards, Walmart for the free TU FICO and Lowes because it gives a 5% discount.

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I have a Lowes card with a $12.5K limit, a CareCredit Card with a $11K limit among a few other GECRB cards.

 

I get 5% off everyday purchases at Lowes and interest free purchases up to 24 months depending on purchase amount.

 

CareCredit financed $2.3K in dental work for my Wife at 0% interest for 18 months.

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I myself have the Amazon store card -- got it way before getting the proper visa one -- and the wally world one. Both are GECRB, with $6K and $2K limits respectively. Interest rates on them are worst than in my normal cards, so there is that incentive to PIF. That said, the Amazon does offter the 6 month no interest for purchases of I think $150 or more, and I've had it for a few years. And the wally world offers free TU Fico 08, which is my main reason to have it.

 

Honestly I think I have about as many store cards as I would want.

 

FYI, originally I think my Amazon was like $600 and the Wal Mart one $700. Calling the GECRB backdoor/whatever helped me raise them; I've never had any luck with the love button.

 

If you already have store cards, keep them primarily for AAOA, specially if they have no AF. Then every few months buy something cheap or buy and return an item just to show activity.

 

IMHO the only reason to have store cards are:

 

(1) You can't get approved for a major (although this is generally untrue for anyone... get a secured MC or V instead);

(2) There are tremendous discounts that are only available by using the store's card, AND those discounts vastly out-value the rewards you could get with a major credit card. Even my CU secured card offered rewards. Tepid rewards, but rewards! Note that this has nothing to do with your credit per se... it's more a spending preference.

 

Whenever possible if you MUST get a store-branded card for reason (2), generally speaking, for your credit, you will be better served in the long-run to get the MC/V/AE/D version of the merchant's credit card (PayPay Extras MasterCard instead of the SmartConnect account; the Macy's American Express instead of the Macy's store card, etc.).

 

I still have three store cards, and I can only defend keeping one of them. I have the other two for age and nostalgia purposes.

 

Hate to disagree with you on this one cv., I'm quite sure you'll know that if you are in the rebuild stage with low scores in the 500ish, rarely if ever they will approve

anyone with the AE/V/MC/DISC, version of any store card.

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I myself have the Amazon store card -- got it way before getting the proper visa one -- and the wally world one. Both are GECRB, with $6K and $2K limits respectively. Interest rates on them are worst than in my normal cards, so there is that incentive to PIF. That said, the Amazon does offter the 6 month no interest for purchases of I think $150 or more, and I've had it for a few years. And the wally world offers free TU Fico 08, which is my main reason to have it.

 

Honestly I think I have about as many store cards as I would want.

 

FYI, originally I think my Amazon was like $600 and the Wal Mart one $700. Calling the GECRB backdoor/whatever helped me raise them; I've never had any luck with the love button.

 

If you already have store cards, keep them primarily for AAOA, specially if they have no AF. Then every few months buy something cheap or buy and return an item just to show activity.

 

IMHO the only reason to have store cards are:

 

(1) You can't get approved for a major (although this is generally untrue for anyone... get a secured MC or V instead);

(2) There are tremendous discounts that are only available by using the store's card, AND those discounts vastly out-value the rewards you could get with a major credit card. Even my CU secured card offered rewards. Tepid rewards, but rewards! Note that this has nothing to do with your credit per se... it's more a spending preference.

 

Whenever possible if you MUST get a store-branded card for reason (2), generally speaking, for your credit, you will be better served in the long-run to get the MC/V/AE/D version of the merchant's credit card (PayPay Extras MasterCard instead of the SmartConnect account; the Macy's American Express instead of the Macy's store card, etc.).

 

I still have three store cards, and I can only defend keeping one of them. I have the other two for age and nostalgia purposes.

Hate to disagree with you on this one cv., I'm quite sure you'll know that if you are in the rebuild stage with low scores in the 500ish, rarely if ever they will approve

anyone with the AE/V/MC/DISC, version of any store card.

If I could do things differently I would skip the store cards. I should have stuck to three secured V//MC/AE cards to get started instead. There are some secured cards that don't require a credit check.

 

If you're rebuilding, it's more important to have durable tradelines than to get an extra 5% off XXXXL clam diggers at Woman Within.

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one store card that is definitely OK is Nordstrom since you can later have it upgraded to the Visa and it will be backdated to your original date.

 

Macy's doesn't do that when you upgrade to the Amex.

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If I could do things differently I would skip the store cards. I should have stuck to three secured V//MC/AE cards to get started instead. There are some secured cards that don't require a credit check.

If you're rebuilding, it's more important to have durable tradelines than to get an extra 5% off XXXXL clam diggers at Woman Within.

 

 

Secured cards are definitely key in rebuilding. I really don't think I would be where I am today without my Capital One secured card. And it's much faster than getting a small credit line and constantly begging for CLIs. Just add money to your deposit for a higher credit line!

 

one store card that is definitely OK is Nordstrom since you can later have it upgraded to the Visa and it will be backdated to your original date.

 

Macy's doesn't do that when you upgrade to the Amex.

 

 

Oooh, I like your Nordstrom advice!

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