Do you really need store cards?

[jeffery581]

Do you really need store cards for best score possible?

[HiLine]

What makes you think that?

[jeffery581]

Because I remember seeing a blip from a CRA (don't remember what one) that said I had a good mix of credit with retail cards. I really dont want any store cards. And was just wondering if you really need them for scoring purposes. Something like a good mix of credit. and im not talking about installments. ect.

[HiLine]

You already have TONS of store cards. If anything I would suggest closing some that you don't need. At this point, adding another credit card of any sort isn't going to help with credit mix. You're way past that point IMO.

[jeffery581]

Im not wanting to add another...

so back to my original question...

[blondy250]

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@jeffery581 wrote:

Do you really need store cards for best score possible?

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Nonsense.

[longtimelurker]

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@blondy250 wrote:

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@jeffery581 wrote:

Do you really need store cards for best score possible?

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Nonsense.

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Actually, I don't think it is nonsense!  Look at http://www.bankrate.com/finance/credit-cards/closing-credit-card-dings-credit-score-3.aspx (interview with FICO product manager)

The credit mix (is) like 10 percent -- and that looks at the proportion of different kinds of credit. The big categories would be credit cardsand mortgages and auto loans. But then within credit cards, it breaks it down into whether you have bank cards or department-store cards. If you close off all your bank cards and they get deleted from your report in a few years, and all you're left with is department-store cards, that can hurt your score a little bit. Down the road that can hurt you, but that's a very minimally weighted part of the scoring. For most people, it's not going to matter a whole lot.

And it goes on to say this if you have to choose, having all bank cards is better than having all store cards, but there is a (small) benefit to having both, so the answer to the OPs question about the "best score" is probably "Yes", albeit small.

[jeffery581]

I wonder how many retail cards are needed for max effect. 3?

I am tired of looking over so many accounts and want to close some cards but just wanting to know how many I should leave open for max benefit.

[longtimelurker]

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@jeffery581 wrote:

I wonder how many retail cards are needed for max effect. 3?

I am tired of looking over so many accounts and want to close some cards but just wanting to know how many I should leave open for max benefit.

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One is all you need for that purpose.  In the same way you don't need 2 mortgages or 2 car loans.

[DrJim]

No.  You can see my scores and I don't have any store cards.  I don't need them, and I don't want them.  At one time they were helpful because there were some stores (like Macy's) that would not accept any other cards - debit cards have changed that forever, so now they accept the cards.