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Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: I need a store card...

[ Edited ]

beamMEup wrote:

 

The FICO hit is "Too few bank revolving accounts"

CU accounts don't meet these criteria, neither do national merchant cards i.e. Macy's or Sears.

To avoid losing points here, you must have one bank (or national credit card meaning CapOne, AmEx, Discover - not co-branded but direct from those companies [these guys are actually national banks] to you).

 

That's one of the reasons HSBC (or other various favorites) is a good rebuilder card - it's score-building to have at least one "bank" card.  For FICO scoring purposes, there is no benefit to a store or merchant card per se.


Actually it was Macy's and Sear's in the same sentence. Your awfully sure about the Sear's MC's. They are Citi and HSBC products. Two chances to be wrong here...

Message Edited by creditwherecreditisdue on 09-08-2009 01:20 AM
Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008

Re: I need a store card...

[ Edited ]

Scamp wrote: many who've obtained their first of such cards have reported a bigger-than-expected score increase as a result.

Fico buddies - that's exactly what I was hoping for.

Here’s our experience.  I added store cards to both my and DH mix as part of our rebuilding.  Here are the EQ FICO results from myfico, listed chronologically.  I only post inquiries if I had a score change accompanying them.  I bolded the first store card in each case.   

 

Me

None of these accounts resulted in a significant change in utilization at time of initial posting (<5% change).  AAofA went from 10 to 8.

Started with no current revolving credit, two installment loans.

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

Added Macy’s Store Card ($1,000 CL – $148 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

None of these accounts resulted in a significant change in utilization at time of initial posting (<5% change); AAofA went from 9 to 6.

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

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

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

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

Added Macy’s Visa ($1,200 CL - $0 balance):  0 pts.

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.

 

YMMV.  That variation (and not constant) tells me there's not an unspoken standard FICO hurray for having a merchant (store) card.  I know it's hard for all of us trying to track this, including AAofA, utilization, number of accounts reporting and other sundry things changing on your report - but we've been carefully screening for those things as we've been monitoring our reports.  One thing we myfico'ers know is that we benefit greatly from these forums and the mods and posters who so willingly (and most often, kindly) are willing to post info for us all to learn from.  The other thing we know for sure is that the FICO gods do want us to have at least one bank card - and will defniitely grant us FICO points for doing so.  Now I'm done with math for the day & think I'll head back to taking care of the lovely peaches on our tree that HAD to be just SO ripe today - I'm thinkin' freezer jam......yep. 

 

edited for punctuation   

 

Message Edited by beamMEup on 09-08-2009 12:22 PM
Message Edited by beamMEup on 09-08-2009 12:23 PM
Just puttin' syrup on something, don't make it pancakes.
Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008

Re: I need a store card...

[ Edited ]

creditwherecreditisdue wrote:

Actually it was Macy's and Sear's in the same sentence. Your awfully sure about the Sear's MC's. They are Citi and HSBC products. Two chances to be wrong here...


Oh, I looked at my original post - guess I did refer to Sears in the next post. 

I don't understand your question or your "two chances to be wrong???"

(That would be a good day -- if I only had two chances - I think I'd use them up by 7 AM!!!)

Citi cards and HSBC cards are major bank cards if they are direct to the consumer - not through a co-branded merchant entity like Sears or Macy's.  Store cards are often serviced by national banks, but that doesn't make them national bank cards.  HSBC Orchard cards may be confusing the issue because Orchard Bank is a national bank.  Hope that helps, credit. 

Message Edited by beamMEup on 09-08-2009 07:13 PM
Just puttin' syrup on something, don't make it pancakes.
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: I need a store card...


beamMEup wrote:

creditwherecreditisdue wrote:

Actually it was Macy's and Sear's in the same sentence. Your awfully sure about the Sear's MC's. They are Citi and HSBC products. Two chances to be wrong here...


Oh, you're looking at another thread.  Didn't know that.  Somehow I don't seem to explain this clearly.  Citi cards and HSBC cards are major bank cards if they are direct to the consumer - not through a co-branded entity like Sears or Macy's.  HSBC Orchard Bank is co-branded but Orchard Bank is a national bank.  Store cards are often


 

Orchard Bank is not a co-brand!
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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: I need a store card...

fyi, the Sears MC counts as a major CC. Even though we all know how lame it really is. ;-)

The straight Sears store card does not register as a major bank card.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: I need a store card...


haulingthescoreup wrote:
fyi, the Sears MC counts as a major CC. Even though we all know how lame it really is. ;-)

The straight Sears store card does not register as a major bank card.

Thank you for clarifying the matter. I was virtually certain it did. I just don't have one to prove it.

 

It is a MC issued by a major bank = Citi! Equally, by extension, the Sears Solution MC, issued by HSBC, also should be a major bank card.

 

Unfortunately they are both lamish products. Why Her Ladyship recently got both a Sears store and Sears MC is beyond me. Not worth it for the piddling in-store discount in my book. Neither one of them is going anywhere!

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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: I need a store card...


creditwherecreditisdue wrote:

haulingthescoreup wrote:
fyi, the Sears MC counts as a major CC. Even though we all know how lame it really is. ;-)

The straight Sears store card does not register as a major bank card.

Thank you for clarifying the matter. I was virtually certain it did. I just don't have one to prove it.

 

It is a MC issued by a major bank = Citi! Equally, by extension, the Sears Solution MC, issued by HSBC, also should be a major bank card.

 

Unfortunately they are both lamish products. Why Her Ladyship recently got both a Sears store and Sears MC is beyond me. Not worth it for the piddling in-store discount in my book. Neither one of them is going anywhere!



The way it works is that if a card has a Visa/ MC/ Discover? AmEx logo, it counts for FICO scoring as a bank card.

If it doesn't have the logo, it's scored as a retail card.

That's pretty much the only difference -- the presence or absence of a bank card logo.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: I need a store card...


haulingthescoreup wrote:

creditwherecreditisdue wrote:

haulingthescoreup wrote:
fyi, the Sears MC counts as a major CC. Even though we all know how lame it really is. ;-)

The straight Sears store card does not register as a major bank card.

Thank you for clarifying the matter. I was virtually certain it did. I just don't have one to prove it.

 

It is a MC issued by a major bank = Citi! Equally, by extension, the Sears Solution MC, issued by HSBC, also should be a major bank card.

 

Unfortunately they are both lamish products. Why Her Ladyship recently got both a Sears store and Sears MC is beyond me. Not worth it for the piddling in-store discount in my book. Neither one of them is going anywhere!



The way it works is that if a card has a Visa/ MC/ Discover? AmEx logo, it counts for FICO scoring as a bank card.

If it doesn't have the logo, it's scored as a retail card.

That's pretty much the only difference -- the presence or absence of a bank card logo.

I think the issue here was that certain Visa/MC's do not qualify as major bank cards. We know that CU cards do not. USAA does not. I also don't believe Macy's Visa does either. I'd love to know I was wrong about Macy's - is there any way to tell from a CBR?


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