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Benefits of Diversifying Credit Card Accounts?

Frequent Contributor

Benefits of Diversifying Credit Card Accounts?

I currently have all Visa cards along with a Discover card but no Store Cards. I've seen some conflicting statements that having a store card is good while others say it makes no difference, etc. So I've been contemplating on maybe adding a few cards sometime in 2013 once some of my inquiries hit 1 year (January-March) and a few others drop off at the 2 year mark (June-August). So do store cards actually have any benefits for FICO and what store cards are good. 

 

Currently have: 

1) Discover More 

2) Capital One Journey 

3) Chase Freedom 

4) Citi Forward 

5) Citi Dividend

 

I don't have any GE Card...so I was looking at the Lowes Card.  Any thoughts?

Message 1 of 9
8 REPLIES
Established Contributor

Re: Benefits of Diversifying Credit Card Accounts?


CC365 wrote:

I currently have all Visa cards along with a Discover card but no Store Cards. I've seen some conflicting statements that having a store card is good while others say it makes no difference, etc. So I've been contemplating on maybe adding a few cards sometime in 2013 once some of my inquiries hit 1 year (January-March) and a few others drop off at the 2 year mark (June-August). So do store cards actually have any benefits for FICO and what store cards are good. 

 

Currently have: 

1) Discover More 

2) Capital One Journey 

3) Chase Freedom 

4) Citi Forward 

5) Citi Dividend

 

I don't have any GE Card...so I was looking at the Lowes Card.  Any thoughts?


One of the benefits to having store cards is that you don't have to worry about having to charge up one of your major bank credit cards. Like with me i can charge up my walmart card at walmart instead of charging up my others at walmart and i can the use my others when i need them the most, also having a store card can be good for utilization purposes if your hardly shopping at the store, like with me i have an Amazon Store card at $1,200 and i rarely shop on Amazon and i may actually stop using it all together and by doing that it will help with my utilization so i can keep it low. I hope you understand what i am saying.

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Message 2 of 9
Established Contributor

Re: Benefits of Diversifying Credit Card Accounts?

I don't bother with store cards because they tend to have high APRs, few or no rewards, and I can only use them in that store. I have read that they do nothing for your FICO score, I am not certain about that. I prefer to use bank (or CU) cards because they generally have higher limits, offer (sometimes pretty substantial) rewards, usually have much lower APRs, and I can use any one of them anywhere I want. I do have one store card-JCP-which is the first card I ever got. I hardly ever use it and were it not for the AAoA issue, I would close it. I know some prefer, or at least don't mind, store cards, but you just do what works for you.

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Message 3 of 9
Established Contributor

Re: Benefits of Diversifying Credit Card Accounts?

Don't clog the wallet. You have some good cards. Keep on that path...

Message 4 of 9
Established Contributor

Re: Benefits of Diversifying Credit Card Accounts?


CC365 wrote:

So do store cards actually have any benefits for FICO  

 

 


I think your eye might be on the wrong prize.  You should be get credit that you need.  Not for the sake of a FICO.  

 

I echo those who say that you got good cards and no to getting store cards.

Message 5 of 9
Senior Contributor

Re: Benefits of Diversifying Credit Card Accounts?


adavis425 wrote:

I don't bother with store cards because they tend to have high APRs, few or no rewards, and I can only use them in that store. I have read that they do nothing for your FICO score, I am not certain about that. I prefer to use bank (or CU) cards because they generally have higher limits, offer (sometimes pretty substantial) rewards, usually have much lower APRs, and I can use any one of them anywhere I want. I do have one store card-JCP-which is the first card I ever got. I hardly ever use it and were it not for the AAoA issue, I would close it. I know some prefer, or at least don't mind, store cards, but you just do what works for you.


+1 I only have one, Walmart, which is primarily for util and FICO. Another consideration is the impact that adding several cards will have on your AAoA and FICO. You get a ding for new accts often - not always. And if it lowers your AAoA enough, you'll get dinged for that, too. There are a couple of store cards that I would like, but haven't gotten because I don't want to lower my AAoA.

 

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EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Message 6 of 9
Frequent Contributor

Re: Benefits of Diversifying Credit Card Accounts?

Thanks guys! I just figured that if it was benefitial to get a store card I can get one from Lowes since I do shop there a few times a year. (2 birds-1stone Smiley Wink) I think I'll hold off on it for now and get it only if I want to use a 0% offer on a "large purchase."

Message 7 of 9
Moderator Emeritus

Re: Benefits of Diversifying Credit Card Accounts?


CC365 wrote:

Thanks guys! I just figured that if it was benefitial to get a store card I can get one from Lowes since I do shop there a few times a year. (2 birds-1stone Smiley Wink) I think I'll hold off on it for now and get it only if I want to use a 0% offer on a "large purchase."


 

I agree with the previous posters that you don't need to have a store card to increase your FICO score, as having a major credit card vs. a store card does not factor into your mix of credit; they're both revolving accounts. That being said, if you do shop at Lowe's often enough, it may be a good card for you to consider for its own sake. My DH has one, and we get 5% off each and every purchase, unless we would want make a large purchase and take advantage of 0% financing instead. The 5% off at the register beats the rewards that we get from any of our other cards. It's just something to think about.


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Message 8 of 9
Highlighted
Valued Contributor

Re: Benefits of Diversifying Credit Card Accounts?

Amazon Store card is a great card to have since its backed by GE. It gives good CL and CLI like every few months plus its SPs that helps UTI. It also offers tiered zero percent financing. Store cards are a good mix just depends which ones IMO.

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Message 9 of 9