Department Store Card

[Anitabetterscore]

I want to get some new furniture in before the holidays and I'm considering applying for a Store Card but I don't want the hit to be too great on my score. I was at 621 last month until I paid for car repair on a credit card simply because my daily limit at my bank wasn't enough. My score dropped to 617. I have paid the entire repair balance off so Im hoping to bounce back 621 or higher since other things continue to age. Any advise on department store cards and their impact?

[john398]

Well some store credit are actually installment loans and will not affect your util but I have heard you get dinged for an installment loan....

[birjest]

Hmmm, my question to you is, can you afford it?  Sure, you can probably be approved, but are you planning to pay this off in 6 months, or during a 0% period?  It is proven that 60% plus consumers do not pay the card off during this period and wind up paying 23% (depending on the furniture company) for 3 plus years.  I say, apply for a card that have 0% interest rate for 15months or more (Discover More: 0% for 15 months; Citi Platinum Select M/C: 0% for 21 months) and purchase your furniture this route. 

[Anitabetterscore]

I was planning to pay off in 6 months or less. Im concerned about applying for a Discover or Citi as I don't know if I'll be approved. I was thinking the score requirements would be less on a dept card

[birjest]

True, it might be lower.  However, have you pulled your scores from myfico recently?  Atleast you can get a true snapshot of your credit score..but since you say that you will pay it off in 6 months, then apply.  but go to the website: whogavemecredit.com

[Anitabetterscore]

I just pulled the scores... 622 TU 617 Exp how do I know (if at all) which they will pull 620 seems to be a magic number

[birjest]

Hey, these scores are good.  you are on the road to 650, then 700.  You won't know the magic number unless you go to the website I listed and get an idea of the scores people have when they applied for credit...

[Anitabetterscore]

Ok, Ill check it out, thanks  My goal is to reach mid 700's and stay there.

[MS00000000]

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@Anitabetterscore wrote:

I want to get some new furniture in before the holidays and I'm considering applying for a Store Card but I don't want the hit to be too great on my score. I was at 621 last month until I paid for car repair on a credit card simply because my daily limit at my bank wasn't enough. My score dropped to 617. I have paid the entire repair balance off so Im hoping to bounce back 621 or higher since other things continue to age. Any advise on department store cards and their impact?

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Just a side comment, but you mentioned that you used your credit card because your daily limit at your bank wasn't enough. In my experience, if you have the money available and you call your  bank, they will probably do a temporary increase on your limit if you explain what it's for. I've done this for car repairs or airline tickets, and other high dollar items in the past and never had an issue with my bank telling me "no."

[Anitabetterscore]

Thanks, I was so frustrated with the day I didnt think that far but great info to know!