Store cards

[Allkindabroke]

 

Hindsight being 20/20, I would have only opened four of my nine store cards:

Best Buy - 6% back on BB purchased/promotional financing/Bump to the BBRZ benefits with the credit

Target - 5% off purchases

Walmart - Credit line /Financing

JCPenny's -Credit line/Double points at Sephora

Are the double points at Sephora worth more than say 2% back? Trying to find the cut-off point to justify a store card for DW.

 

The financial value is nowhere near 2% back. If beauty products and accessories are a way of earning income, a hobby or a compulsive fixation then the value is ∞%. If none of those apply to your wife then I would recommend sticking with your cash back rewards.

[Jon77]

 

 

 

Store cards are great for rebuilding and newbies since they are typically easier to get. While they CAN keep you down if you start with bad ones and ONLY have bad ones, they certainly don't do that as a rule. I have about 30% store cards which are made up of the good high limit lenders like Sync ($35k x2), Kay ($10k), Macy's ($17k), etc. Store cards do not hold you back, nor do the big boy lenders or FICO care that you have them. Only that you're using them well.

 

-1

 

Secured cards will do much more for you than store cards. They CAN hold you back. Also, store cards do not count as a "pry bar" account.

 

-1

 

Please tell me where I said store cards "do much more" than secured? Seems as though I agreed with the second statement. Where did I say they were "pry bars" for anything?

 

All I was getting at was that they are easy to get, add to FICO utilization and diversity of accounts. Nothing more.

 

 

You said they were great for rebuilding and newbies which it inaccurate. That is not the way to build a credit profile.

It was for me and boosted my scores significantly and almost instantly back when I had a 580. We may disagree, but I'm not inaccurate.

 

 

Store cards are also not needed for diversity. FICO won't reward you for opening a store card, although they do sometimes generate statements about having too many store accounts.

Again, FICO rewarded me for acquiring new store cards. They even included them in my UT when I carried a balance. That's a reward towards FICO in my view. You may not like them. Other people may not like them for not having great rewards. But, FICO liked them and that is fact, not my opinion.

 

 

Just because a card is easy to get does not mean you should get it.

I did not make it a hard rule of thumb that you should get nothing but store cards. I said "typically" they're easier to get. In addition, I would add that you should get one that rewards you and fits your shopping habits. I don't have any store cards that don't reward me in some significant way or another. I'm talking 5% or more.

Edited June 21, 2018 by Jon77

[Jon77]

 

Hindsight being 20/20, I would have only opened four of my nine store cards:

Best Buy - 6% back on BB purchased/promotional financing/Bump to the BBRZ benefits with the credit

Target - 5% off purchases

Walmart - Credit line /Financing

JCPenny's -Credit line/Double points at Sephora

Are the double points at Sephora worth more than say 2% back? Trying to find the cut-off point to justify a store card for DW.

 

All my store cards earn 5% or more. That's my cut-off line.

 

Target 5%

BBRZ 6%

Lowes 5%

Amazon 5%

Macy's ~10%

[Kat58]

My CC journey began in 2011. I have 13 CC's total.

 

Walmart (opened 2/2013) One of the 1st cards to offer a free FICO score.

Amazon/Sync (opened 9/2017) 5% and Prime stuff.

Ducks Unlimited (opened 2/2018) 5% gas.

[ezeus1]

I think it depends on your situation.
Store cards can be alright if you have zero AAOA already anyway.
I have 14 store cards that I opened when I was 19. Those 14 cards are all 20 years old now giving me a very solid anchor for churning sign up bonuses.
They hardly ever get used, but the benefit of having them anchoring my AAOA is huge.

[ezeus1]

 

 

Hindsight being 20/20, I would have only opened four of my nine store cards:

Best Buy - 6% back on BB purchased/promotional financing/Bump to the BBRZ benefits with the credit

Target - 5% off purchases

Walmart - Credit line /Financing

JCPenny's -Credit line/Double points at Sephora

Are the double points at Sephora worth more than say 2% back? Trying to find the cut-off point to justify a store card for DW.

 

All my store cards earn 5% or more. That's my cut-off line.

 

Target 5%

BBRZ 6%

Lowes 5%

Amazon 5%

Macy's ~10%

 

If you're an Amazon Prime Member, you can now use that Amazon 5% at Whole Foods. Changed my life.

[mendelssohn]

 

 

 

 

Store cards are great for rebuilding and newbies since they are typically easier to get. While they CAN keep you down if you start with bad ones and ONLY have bad ones, they certainly don't do that as a rule. I have about 30% store cards which are made up of the good high limit lenders like Sync ($35k x2), Kay ($10k), Macy's ($17k), etc. Store cards do not hold you back, nor do the big boy lenders or FICO care that you have them. Only that you're using them well.

-1

 

Secured cards will do much more for you than store cards. They CAN hold you back. Also, store cards do not count as a "pry bar" account.

-1

 

Please tell me where I said store cards "do much more" than secured? Seems as though I agreed with the second statement. Where did I say they were "pry bars" for anything?

 

All I was getting at was that they are easy to get, add to FICO utilization and diversity of accounts. Nothing more.

You said they were great for rebuilding and newbies which it inaccurate. That is not the way to build a credit profile.

It was for me and boosted my scores significantly and almost instantly back when I had a 580. We may disagree, but I'm not inaccurate.

 

 

Store cards are also not needed for diversity. FICO won't reward you for opening a store card, although they do sometimes generate statements about having too many store accounts.

Again, FICO rewarded me for acquiring new store cards. They even included them in my UT when I carried a balance. That's a reward towards FICO in my view. You may not like them. Other people may not like them for not having great rewards. But, FICO liked them and that is fact, not my opinion.

 

 

Just because a card is easy to get does not mean you should get it.

I did not make it a hard rule of thumb that you should get nothing but store cards. I said "typically" they're easier to get. In addition, I would add that you should get one that rewards you and fits your shopping habits. I don't have any store cards that don't reward me in some significant way or another. I'm talking 5% or more.

FICO rewarded you for adding revolving accounts, not because they were store cards.

[Konrad2012]

 

 

 

 

 

Store cards are great for rebuilding and newbies since they are typically easier to get. While they CAN keep you down if you start with bad ones and ONLY have bad ones, they certainly don't do that as a rule. I have about 30% store cards which are made up of the good high limit lenders like Sync ($35k x2), Kay ($10k), Macy's ($17k), etc. Store cards do not hold you back, nor do the big boy lenders or FICO care that you have them. Only that you're using them well.

-1

 

Secured cards will do much more for you than store cards. They CAN hold you back. Also, store cards do not count as a "pry bar" account.

-1

 

Please tell me where I said store cards "do much more" than secured? Seems as though I agreed with the second statement. Where did I say they were "pry bars" for anything?

 

All I was getting at was that they are easy to get, add to FICO utilization and diversity of accounts. Nothing more.

You said they were great for rebuilding and newbies which it inaccurate. That is not the way to build a credit profile.It was for me and boosted my scores significantly and almost instantly back when I had a 580. We may disagree, but I'm not inaccurate.

 

 

Store cards are also not needed for diversity. FICO won't reward you for opening a store card, although they do sometimes generate statements about having too many store accounts.Again, FICO rewarded me for acquiring new store cards. They even included them in my UT when I carried a balance. That's a reward towards FICO in my view. You may not like them. Other people may not like them for not having great rewards. But, FICO liked them and that is fact, not my opinion.

 

 

Just because a card is easy to get does not mean you should get it.I did not make it a hard rule of thumb that you should get nothing but store cards. I said "typically" they're easier to get. In addition, I would add that you should get one that rewards you and fits your shopping habits. I don't have any store cards that don't reward me in some significant way or another. I'm talking 5% or more.

FICO rewarded you for adding revolving accounts, not because they were store cards.

I rebuilt from a 500 FICO and have 2 stores cards. A $35K Lowes, a $6K Victoria's Secret. There's no need to load up on garbage cards. Edited June 22, 2018 by Konrad2012

[Konrad2012]

Where'd Selena go?

[Sidewinder]

Where'd Selena go

mez.

[wwanderer]

If store cards help in rebuilding, because theyre revolving accounts, then obviously they do help some. So much arguing and nitpicking. Sheesh.

[cv91915]

If store cards help in rebuilding, because theyre revolving accounts, then obviously they do help some. So much arguing and nitpicking. Sheesh.

 

You could eat a roll of toilet paper for dinner and feel full afterward.

[Big Bear]

Main point with store cards, IMO: They never pass the quality > quantity litmus test.

[shifter]

If store cards help in rebuilding, because theyre revolving accounts, then obviously they do help some. So much arguing and nitpicking. Sheesh.

Because any "help" is very short term and they can have a long term negative effect. Short sighted credit building is not what we recommend around here.

[mendelssohn]

 

If store cards help in rebuilding, because theyre revolving accounts, then obviously they do help some. So much arguing and nitpicking. Sheesh.

Because any "help" is very short term and they can have a long term negative effect. Short sighted credit building is not what we recommend around here.

+10000000000000000

[wwanderer]

Do yall not realize how off putting it is to come to these forums and see so much arguing, nitpicking, etc? Not to mention frustrating weeding through all the arguing to find actual information. There is a ton of info here, but yall make it hard to find with all your arguing and one-upping etc. Lordy.

[mendelssohn]

Do yall not realize how off putting it is to come to these forums and see so much arguing, nitpicking, etc? Not to mention frustrating weeding through all the arguing to find actual information. There is a ton of info here, but yall make it hard to find with all your arguing and one-upping etc. Lordy.

Keep reading here. Its not nitpicking.

[mendelssohn]

If you want to slow down your rebuilding, go on a store card app spree and find out what toy card hell is.

[Big Bear]

To be fair, there is a lot of "insert reasons to have people on ignore here" on CB.

 

But as for the "arguing" against store cards specifically in this thread it's to combat long-term effects from short-term decisions. The intentions are good and founded in experienced facts.

 

CB isn't good with participation trophies. MFF has us beat in that category.

[wwanderer]

Its one thing to point out they are *less helpful* for long term credit building, and that getting too many of them may be detrimental. Its entirely another to just argue argue argue with so much crap attitude. And 2 applications is hardly an app spree.

 

Telling people to just ignore people is not helpful. Maybe try being a lil less curmudgeonly. Maybe that might help encourage people to stick around instead of just dig for whatever info they can and leave.

Edited June 24, 2018 by wwanderer

[MarvBear]

We won't survive if people just come and leave and never come back.

 

I hid most of the rude banter in this thread.

 

And

 

This board is not about being an elitist.

 

Well paid revolving lines look good on a credit file. Fortunately, I don’t think FICO has a personality that is elitist and scores accordingly.

 

I believe this thread has served its purpose.