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Credit Cards: Department Store vs Bank


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Let me start off thanking all the members who post here in creditboards. I'm learning a lot in a very short time frame.

 

I'm trying to rebuild my credit. I have one credit card with a low 500.00 CL. After some research on CB and a reply from a thread I started, I think its time for a short spree of 2 more cards (possibly 3?) . I'm trying to increase my score by obtaining more accounts, increasing my available credit and lower my credit utilization.

 

I just paid my 500.00 limit card down to 7.00 dollars, and I do NOT plan on using the additional cards that I apply for unless suggested otherwise.

 

As my credit will be in the 580 ball park when I start applying, I'm curious if there is a general rule as to whether traditional credit cards like amex, discover, captial one, etc.....or department store cards, such as lowes, kohl's, sears, etc, have the fastest CLI, and which are "easier" to obtain for someone with...shall we say FAR "less than perfect" credit.

 

Also, forgive my ignorance, but are they're any other differences I should be aware of between these 2 types of revolving credit?

 

Thanks to all!

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Your options will be limited if your FICO scores are below 600. Are you familiar with the CreditPulls database? Look for it near the top of the screen on the blue menu bar. If you click on it you will get to a page where you can type in 580 and see what comes up for past approvals.

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Almost all store cards are going to give you low limits which will be anchors later on. Stick with the best major credit cards (MC/V/AE) you can obtain, they make take longer to get but they will serve you better long-term.

 

I regretted the few store cards that I opened even before my credit was perfect. I still do.

 

Also, please don't get a Credit One or First PREMIER card. Ever.

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If you open store cards.. take my advice and make sure they are places that you actually shop... possibly have perks (Lowes 12-18-24 mos 0%) ... Target 5% back.. etc etc.

Do not go out and apply for crap you will never use...

I am still dealing with that. For one thing, if you don't use them, you'll find them closed for non use.

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If you open store cards.. take my advice and make sure they are places that you actually shop... possibly have perks (Lowes 12-18-24 mos 0%) ... Target 5% back.. etc etc.

Do not go out and apply for crap you will never use...

I am still dealing with that. For one thing, if you don't use them, you'll find them closed for non use.

^^^ This.

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When I started repairing a little over a year ago (July 2015), my scores were mid to low 500s. I was approved for a QuickSilver1 MC from CapitalOne (a lot of people here HATE Cap1, but they're a good option for someone starting the rebuilding process, in my opinion). It started out with a $500 limit. After 3 months, I hit the CLI button and was bumped to a $4,000 limit (totally blew my mind). Now a year later, my scores are all just over 700 (they should continue to inch higher as my new accounts start to age), I've got many (probably too many, but they all have/had a purpose) new accounts which I pay in full every month, and my little $500 QS1 card I started out with 13 months ago now has a limit of $8,500 (my highest limit so far)!

 

The QS1 *does* have an annual fee, but I believe it's only $49 and I was able to switch to a non-annual fee card after 6 months of using the account. This is also a cash back card. You get 1.5% cash back for every purchase. I used this card for everything, paid it off immediately (because it's easy to max out a $500 limit when you're using it for everyday expenses) and got some pretty sweet extra cash from the 1.5% CB. I earned back that initial $49 and then some pretty quickly. Just be aware that Cap1 does pull from all 3 credit bureaus.

 

And if you haven't done so already, I would suggest going over to Credit Check Total to sign up for their $1 trial. They'll give you all 3 of your actual FICOs (and credit reports) so you can see where you really stand and check your reports for any errors or baddies in need of attention (before applying for cards). It's DEFINITELY worth a buck and then just call to cancel before the week is up. No catch and very valuable info! Good luck!

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When I started repairing a little over a year ago (July 2015), my scores were mid to low 500s. I was approved for a QuickSilver1 MC from CapitalOne (a lot of people here HATE Cap1, but they're a good option for someone starting the rebuilding process, in my opinion). It started out with a $500 limit. After 3 months, I hit the CLI button and was bumped to a $4,000 limit (totally blew my mind). Now a year later, my scores are all just over 700 (they should continue to inch higher as my new accounts start to age), I've got many (probably too many, but they all have/had a purpose) new accounts which I pay in full every month, and my little $500 QS1 card I started out with 13 months ago now has a limit of $8,500 (my highest limit so far)!

 

The QS1 *does* have an annual fee, but I believe it's only $49 and I was able to switch to a non-annual fee card after 6 months of using the account. This is also a cash back card. You get 1.5% cash back for every purchase. I used this card for everything, paid it off immediately (because it's easy to max out a $500 limit when you're using it for everyday expenses) and got some pretty sweet extra cash from the 1.5% CB. I earned back that initial $49 and then some pretty quickly. Just be aware that Cap1 does pull from all 3 credit bureaus.

 

And if you haven't done so already, I would suggest going over to Credit Check Total to sign up for their $1 trial. They'll give you all 3 of your actual FICOs (and credit reports) so you can see where you really stand and check your reports for any errors or baddies in need of attention (before applying for cards). It's DEFINITELY worth a buck and then just call to cancel before the week is up. No catch and very valuable info! Good luck!

Very inspiring and thanks for the good advice. Someone from another thread recommended Credit Check Total as well. I'm gonna shoot over and sign up as soon as my credit card pay down is reported. Maybe I'll get lucky and the scores are a little higher than credit karma "estimates."

 

I know several friends who started rebuilding with the Quick Silver and all had good things to say....at least for the purpose of rebuilding.

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well, you can try to go for a secured CC (but it will be a 25-40$ AF). at that score there is nothing you can do than keep the accounts in good shape and let them age at least 12-24 months.

 

My secured pnc credit card boosted me over 30 points initially. About 45 days later I started receiving unsecured offers in the mail (Capital One and Merrick Bank.) I'm aware that they are only the cards offered to the "high risk" population, but they claim to report to all 3 bureaus, and at least they are willing to give me a chance. I make good money which is definitely in my favor. My low score comes from defaulted student loans at a point in my life that the money wasn't coming in and I regretfully gave up on them....as well as 4 collection cases mostly from 3-5 years ago that total less than 1200.00.

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I got sucked into getting a kohls card while in checkout today.

 

Over $400 in stuff, with 30% off if i got the kohls card.

Plus $10 kohls cash for every $50 spent, and i got a 20% off coupon on my next shopping trip.

 

So i got like $100 off my purchases today, $60 in kohls cash, and a 20% off coupon.

 

Oh, $900 cl. I do shop there. They have pretty much all my clothing need and some gadgetry stuff.

 

I have walmart, lowes, kohls as store cards. I wont get another.

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@getzbusy im mostly in the same place you are have removed the baddies from my account got a secured cc from cap1 which works no worries also a car loan from cap1 both in good standing. I just signed up for a citi secured card. My advice is work the utilization game as instructed in many places on this board. Myfico has 3 scores for 30 bucks a month. If you make good money its worth it to keep an eye on scores i use it as part of my motivation.

 

 

keep at it and welcome to the board.

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As my credit will be in the 580 ball park when I start applying, I'm curious if there is a general rule as to whether traditional credit cards like amex, discover, captial one, etc.....or department store cards, such as lowes, kohl's, sears, etc, have the fastest CLI, and which are "easier" to obtain for someone with...shall we say FAR "less than perfect" credit.

CLI's depend on your credit profile. You can't rely solely on the card. The card won't get you CLI's on its own if your credit does not qualify. If your credit is far less than perfect then you need to work on it versus relying solely on new accounts to solve all your problems.

 

Maybe I'll get lucky and the scores are a little higher than credit karma "estimates."

You need to consider the relevance of any scoring model. The CK VantageScores are only relevant to creditors that use a TU or EQ VantageScore in their decision. The same thing applies to any score out there. The FICO 8's provided by CCT are only relevant to creditors that use FICO 8's in their decision. Many do but not all do.

 

VantageScores are not estimates. They're just a different model. VS is not intended to mimic FICO 8 or other models. If you want to know what your score is for a given model & CRA then pull that specific score.

Edited by takeshi
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well, you can try to go for a secured CC (but it will be a 25-40$ AF). at that score there is nothing you can do than keep the accounts in good shape and let them age at least 12-24 months.

 

My secured pnc credit card boosted me over 30 points initially. About 45 days later I started receiving unsecured offers in the mail (Capital One and Merrick Bank.) I'm aware that they are only the cards offered to the "high risk" population, but they claim to report to all 3 bureaus, and at least they are willing to give me a chance. I make good money which is definitely in my favor. My low score comes from defaulted student loans at a point in my life that the money wasn't coming in and I regretfully gave up on them....as well as 4 collection cases mostly from 3-5 years ago that total less than 1200.00.

On your first thread it was mentioned that it's best to avoid Merrick Bank and that CapOne wouldn't be a bad choice for you. Don't be thick.

 

Store cards of are very limited use. As already mentioned, avoid them unless it is a store you regularly shop at and there are tangible benefits to the card. Several prime lenders when they look at your credit reports will complete ignore any store cards you have no matter how well you have handled them.

 

Look for another secured card that will graduate. Bank of America is good, but they can be picky. Discover has a secured card that graduates to unsecured as do several other prime lenders and credit unions. If it doesn't graduate, it's crap.

 

Don't worry about credit limit increases. It will be a long time before you see any. CapOne can be good if they stick you in a card that has Credit Steps. Other than that, worry about getting the crap stains off your credit reports. After your reports start looking better, you have a year under your belt of good credit management and your secured cards are graduating, then you are in a good position to make a quick rebound and go for some better products.

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As my credit will be in the 580 ball park when I start applying, I'm curious if there is a general rule as to whether traditional credit cards like amex, discover, captial one, etc.....or department store cards, such as lowes, kohl's, sears, etc, have the fastest CLI, and which are "easier" to obtain for someone with...shall we say FAR "less than perfect" credit.

CLI's depend on your credit profile. You can't rely solely on the card. The card won't get you CLI's on its own if your credit does not qualify. If your credit is far less than perfect then you need to work on it versus relying solely on new accounts to solve all your problems.

 

Maybe I'll get lucky and the scores are a little higher than credit karma "estimates."

You need to consider the relevance of any scoring model. The CK VantageScores are only relevant to creditors that use a TU or EQ VantageScore in their decision. The same thing applies to any score out there. The FICO 8's provided by CCT are only relevant to creditors that use FICO 8's in their decision. Many do but not all do.

 

VantageScores are not estimates. They're just a different model. VS is not intended to mimic FICO 8 or other models. If you want to know what your score is for a given model & CRA then pull that specific score.

 

Thank you for clarifying CLIs. I'm curious about your choice to reference FICO 8. Is that model more commonly used by lenders than FICO 9? I'm new to all this, but I did read that FICO 9 does not count paid/settled collection accounts against your score. Do you know if FICO 8 operates this way as well? I understand while my score may not be harmed by the paid collections, the negative accounts still don't look good....but I'm just curious. I'm thoroughly reading Psych Doc's Transcripts and the moment a recent large credit card payment (70% total credit utilization down to 2%) is reported I am going to get my official reports and implement the recommendations of Psych Doc and Whychat immediately. I'm definitely feeling empowered. LOL.

 

Thanks again for your reply.

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