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Valued Member
Posts: 45
Registered: ‎11-04-2008
0

Add store card for credit mix?

I have 9 branded credit cards (VISA, MC, Discover by HSBC).  Does it pay to burn an inquiry for a store card such as Kohl's?  I get conflicting advice whether or not that is hurting my credit mix.  I do also have student loans (for installment credit) reporting as well.

 

Some say yes, some say no.  Any ideas?

FICOs (4/7/09): TU-749 (WOW!); EQ-698; EX-?

FICOs (as of 11/1/08): TU-690, EQ-678, EX-646

FICOs (3/13/09): TU-698; EQ-696; EX-662
Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Add store card for credit mix?

I've always been deeply skeptical about this --I mean, it's so illogical; it's usually easier to get a store card than a bank card --but I've read enough feedback here to think that it must be so.

Sounds like you've done the research, but just to recap:

--the store (or gas) card can't also say Visa/ MC/ Discover/ or AmEx to count
--pick one for a store that you actually go to; you'll have it for a long time
--find one that gives cardholders deals that you will actually use
--always plan to PIF unless they give you 0% APR or something; store cards usually have ungodly interest rates
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Member
Posts: 45
Registered: ‎11-04-2008
0

Re: Add store card for credit mix?

Thanks.  I only let one card report a balance of 1-5% at most.  The only downside is that my AAoA is 3 years, 8 months.  I have 2 accounts under a year old that will have birthdays by June and thus no new accounts after that.  If I decided to app for a Kohl's card, wouldn't that negate the points I would gain in June without having any new accounts?
FICOs (4/7/09): TU-749 (WOW!); EQ-698; EX-?

FICOs (as of 11/1/08): TU-690, EQ-678, EX-646

FICOs (3/13/09): TU-698; EQ-696; EX-662
Frequent Contributor
Posts: 368
Registered: ‎02-07-2008
0

Re: Add store card for credit mix?

Since it doesn't have a logo, does PayPal Buyer Credit(GEMB) count as a store card?
"Knowledge is of no value unless you put it into practice."- Anton Chekhov
4/11 TU 743 4/11 EQ 763
Valued Member
Posts: 45
Registered: ‎11-04-2008
0

Re: Add store card for credit mix?

So, I decided to go ahead and take the plunge to apply for a store charge card.  I like the clothes at Kohl's and figure I could use it there a decent amount.

 

I was approved instantly online which was a good feeling.  I haven't applied for anything since June of last year.  Hopefully this should help my scores out.

FICOs (4/7/09): TU-749 (WOW!); EQ-698; EX-?

FICOs (as of 11/1/08): TU-690, EQ-678, EX-646

FICOs (3/13/09): TU-698; EQ-696; EX-662
Established Contributor
Posts: 739
Registered: ‎06-30-2007
0

Re: Add store card for credit mix?

my understanding is store cards have will bad effect on the mix, not to say their worthless they are a revoving trade line, but if a bank card . you don't need it
People say "Only apply for credit you NEED"

I say "apply for credit you have PRATICAL use of"

I don't have AMEX card because I don't want a card that suffers from PMS
Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Add store card for credit mix?


rbbyrbsn wrote:
my understanding is store cards have will bad effect on the mix, not to say their worthless they are a revoving trade line, but if a bank card . you don't need it

Sorry, this is incorrect. You can check the Credit Education materials they have linked on the dark blue (teal?) bar at the top of the screen.

That being said, one is all you need. A dozen store cards with $500 limits aren't going to do you any good.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Add store card for credit mix?


NavyLifter wrote:

So, I decided to go ahead and take the plunge to apply for a store charge card.  I like the clothes at Kohl's and figure I could use it there a decent amount.

 

I was approved instantly online which was a good feeling.  I haven't applied for anything since June of last year.  Hopefully this should help my scores out.



Congrats! I like Kohl's, and you get great insider deals with their card. I'll start the rush by asking you to let us know your CL when you find out, and which CRA they pulled. Smiley Very Happy

You do realize that the 3/13 EX score you listed can't be a FICO, right? Unless you belong to that Pennsylvania credit union or have been mortgage shopping.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Regular Contributor
Posts: 107
Registered: ‎04-23-2008
0

Re: Add store card for credit mix?

my understanding is store cards have will bad effect on the mix, not to say their worthless they are a revoving trade line, but if a bank card . you don't need it
 

 

------------------------------------------------------------

 

In my case, after adding the Nordstrom retail card (my first and only store card -- I have five bank cards) all my three scores increased by 7 points in average, not much but it was an increase after all. So there was no "bad effect", however, it may vary from one person to another, in my case adding it was a positive one.

 

Zar Smiley Happy

Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Add store card for credit mix?

I personally do not believe that store cards help your credit, except to build credit when you cannot obtain other types, such as Visa, MC, etc.  These cards are less useful, usually get you to spend more on items you don't need and are higher interest rates.

 

If you have established credit, I would not go out of my way for a store card unless there is a reason:  Lowes or Home Depot because you do a lot of home repair and they offer certain incentives, or from a store that you actually shop and get other incentives that you deem worthy.

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