How much do you get approved at American Eagle?

[Anonymous]

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@thrasher865 wrote:

beammeup, are you fairly confident in that?  I had always heard store cards were important to "improve your mix" on here.  Does this mean I couldve gotten the VISA?    I told the CSR that I wanted the store card, but I'm sure the VISA would've come with a much higher limit.  Too late now, I don't think they upgrade, and its not worth an inquiry.

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You may be referring to this text from myfico.com’s Credit Education Center tab, under “What’s In Your Score”

Types of Credit Used:  Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)

Although this is a list of the types of information the formula is evaluating, it is not a list of accounts that have positive impacts or that will yield score increases.  This is evidenced by consumer finance accounts being included in the list. 

When we’re trying to understand how different accounts affect our FICO scores, it helpful to look at the published info  -- the FICO Reason Codes.  Having access to these codes helps us understand FICO scoring and how we can affect our own FICO’s.  You can google them, or they are posted here. 

About a year and a half ago, a few of us did an experiment.  You can check out happy’s Team Guinea Pig results, which posted FICO results for opening a first merchant account.   Guinea Pig Results.

I kept data for a bit longer (six months) and have these results:

Started with no current revolving credit, two installment loans.

Added Orchard Visa ($500 CL – $104 to $0 balance):  +20 pts.

Added Macy’s Store Card ($1,000 CL – $148-0 balance):  -5 pts.

Added 3 inquiries all same day:  -3 pts.

Added 3 GEMB cards all same day ($2,400 CL - $235 balance):  +5 pts.

Added BofA ($500 CL – $0 balance): 0 pts

DH carried out the same experiment with similar results - zero points for him when adding the Macy's store card:

Started with no current revolving credit, one mortgage, one installment loan. 

Added Orchard Visa ($500 CL - $27 balance):  +28 pts.

Added Alliant CU Visa ($10,000 CL - $0 balance):  +2 pts.

Added Cabela’s Visa ($5,000 CL - $0 balance):  0 pts.

Added Macy’s Store Card ($1,200 CL - $0 balance):  0 pts.  (His Macy's Visa reported later and resulted in a minor score decrease)

Added GEMB Care Credit ($11,500 - $0 balance):  +1 pt.

Added Kroger’s Visa ($10,000 CL - $0 balance):  +6 pts.

Added BofA ($500 CL - $0 balance):  -2 pts.

Use store cards for convenience, discounts, long AAofA, decent CL's when building or rebuilding, stuff like that.  But remember there's no FICO Reason Code for "Number of Merchant Accounts"!

Yowzers.  That's enough data points for me for one day (and beyond).  I'm gonna go make me a fruit smoothie - heavy on the papaya. 

[haulingthescoreup]

+1

We think that the benefit of store cards has been pretty well shot down by now.

Back in the day, when many people only had store cards, there was a definite benefit in adding a bank card. That was a progression in credit. But now, when most people have all bank cards and no store cards, adding a store card doesn't seem to do anything, per posts by members who've done so.

Store cards are fine if they benefit you shopping habits (a store where you go a lot, special benefits to cardholders, etc.) but otherwise, they're not going to do anything special in credit land, other than being another (presumably) healthy tradeline.

[thrasher865]

Actually, now that you mention it, I do seem to remember some member experiments just before my FICO hiatus that pretty much shot down that myth.  I guess I just forgot.

I remember saying the same thing when hearing about it, that I was mad I got the store version of my AE card for nothing, when the Visa would have actually helped my score more, because it would have come with a higher limit.

Oh well, now I won't have to feel bad about closing it, when AE inevitably gets upset that I never use it.

[tata]

I also had CL of $100 back in 07, my lowest never used card, tried getting increases, impossible.  They are the WORST CC, still like the clothes. They eventually closed card due to inactivity. YEAH, didn't do me any good.  

[tata]

Never heard of CLI of $1 , talk about CHEAP, and nongenerous of AE.  LOL 

[clumsymoon]

 I also got approved (in store) for $150 CL on the American Eagle. I used it a few times over a period of two years but never for very much (maybe $30 each purchase). I ended up closing it last year because what can you do with $150? I have another clothing store's card and my limit is $2900 so I felt kind of ripped off with the $150 limit. Not sure why I never received automatic CLI but didn't care enough to request one.

[Anonymous]

I was approved a few weeks ago in store with a limit $500. I thought that seemed low until I read this thread.