Cancellation of credit cards from stores

[Anonymous]

It is recommended to cancel the store cards... (example: A & E, Walmart, OldNavy) with 712 at Experian. How would it affect me?

[Appleman]

Hello,

There is not enough information available to make a recommendation.

A few to consider:

Do you have a balance you carry month to month or that is reported each month? If so this will increase the utilization ratio.

What is the age of your accounts? Although the trade line will stay on for up to 10 years, having long term cards will be helpful. (IMO)

[Anonymous]

Use 25% and I have 2 years with them. According to Credit Karma my payment history is excellent

[Anonymous]

I have no bankruptcy or any account in loss

[Scupra]

What other accounts do you have?

[iheartwings]

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@Appleman wrote:

Hello,

There is not enough information available to make a recommendation.

A few to consider:

Do you have a balance you carry month to month or that is reported each month? If so this will increase the utilization ratio.

What is the age of your accounts? Although the trade line will stay on for up to 10 years, having long term cards will be helpful. (IMO)

---

Agree with Appleman.

I assume you are asking this question because you are looking to improve your scores and credit report to get that Chase Freedom! 

Also, don't forget that there three major companies that provide credit reporting. You've mentioned your Experian score when you applied for your American Express card. Scores fluctuate with any changes in your credit report.  I know you're interested in Chase, and they will actually pull more than on credit report (typically, Equifax and Experian). You also mentioned in one of your posts that Chase cited that you had too many requests for new credit, which means it isn't your scores that held you back. You should consider gardening for the time being to get the credit card you want!

Remember that the bulk of what drives your credit score are your payment history and amount of debt (utilization). To a lesser but significant extent are length of credit history, amount of new credit, and credit mix. So, there are general themes when it comes to improving your scores. Things that come to mind: (1) Pay your bills on time, (2) Keep your utilization low (1-9% on one card reporting), (3) The ideal number of credit card accounts would be at least 3, (4) Avoid opening accounts willy-nilly as they can lower your AAoA and increase number of hard pulls. 

Having store cards are typically not recommended, but they have been helpful in rebuilding files because it can be easier to get them.  Some have a great deals and can be worth keeping. For example, I have a Target Redcard, which I keep because of the 5% off on purchases. 

To answer your question about closing store cards, getting a better idea of your portfolio would be very informative. Remember, each card you close means you would be reducing your total available credit, so if you're carrying balances, your utilzation will go up (and that's also not good for your score either!).

Hope that helps.

[AverageJoesCredit]

Hey Yaidyr22, in my humble opinion i find nothing wrong with having store cards. Walmart especially can be a good one for helping with your utilization as you progress up the ladder of clis. Also to me they show good credit habits when i make nice regular payments, whether it be pif or monthly. As stated above they can help your utilization depending on limits and as you say you have 2 years good payment history wven better. Sometimes they can even lead to upgrades to a visa ir mc version!. Now im learning its probably not ideal to have a ton of them but for me personally, i like to have the major store cards that i know at least i will shop at on ocasion like Sears Penny and Macys. But thats just me, im sure there are different factors to consider but if they are helping build a stronger profile i say keep them, unless you dont plan on using them . Cheers !!

[RonM21]

If those cards are working for you, and mixing in fine with your overall profile, I see no reason to get rid of them.

[Anonymous]

Do not say the card Chase I say this because I already got to my goal of having a credit card where I can use in any store and withdraw from ATMs

[Anonymous]

I would have to agree with keeping the cards if they are working for you. I have half of my cards are store cards. Most of which i do not carry a balance on. Walmart store card is a great utilization CLI card. I have Amazon store card i use religiously and a Home Depot store card. There are a lot of good store cards out there. A lot will offer 12mo no interested on purchases over XXX amount. This is why i keep them. You can never beat free money for a 12 + month period!! 2 cents