Store Card

[kal9988]

I have a Macys card, which I use maybe twice a year. I always pay it off, so it pretty much has a $0 balance. Since I only use it every 6 months, I get a score bump when I use it. What's the best way for me to utilize this card to improve my credit? I can't always keep a balance on it as I don't shop there often enough.

[laz98]

you don't have to carry a balance, just buy something maybe every 3 months instead of every 6 months. 

[kal9988]

haha ok

[Wolf3]

Alternately, apply for a store card where you do shop regularly.

[haulingthescoreup]

Two different ways of looking at store cards:

• Do they do something special for your credit mix? --probably not, although the argument will go on forever.
• Do they do something special for your wallet? --if it's a store where you regularly shop, CC or no, and you get good discounts, heads up on sales, etc etc, then maybe, sure. That's something that only you can decide.

In terms of scoring, most store cards have relatively low CL's, so if you let balances report, that can bite you on the patootie. Some store cards tend to have higher CL's. Think expensive stores with expensive toys: Home Depot, Best Buy, Guitar Center, etc. You might get a CL that's comparable to bank cards from a store like these.

But store cards typically have obscene APR's. (Exception: when using the card for over a certain amount gets you 0% for X number of months.)

I think that basically you shouldn't bother with a store card, unless it's going to benefit you as a shopper. As always, though, YMMV.

[kal9988]

Should I close it? Or will that negatively affect my credit?

[haulingthescoreup]

I was just trying to say that adding a store card probably won't do any magic to your scores. But since you already have one, why would you want to close it?

Just use it maybe every 4-6 months to keep it open, only for something that you can pay off right away. You don't want to carry a balance on it.

Alternatively, if you actually do shop at Macy's, use it every time you go to generate the $10 coupon thingies.

If you want to understand the effects of closing, read fused's Closing Credit Cards.

[Anonymous]

Patootie bwahaha

[haulingthescoreup]

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@Anonymous wrote:

Patootie bwahaha

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Well, this is a family site, with people from all backgrounds, although some folks don't seem to realize this, and I'm trying to post less-offensive language.

[Anonymous]

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@haulingthescoreup wrote:

....patootie....

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Patootie© is certainly a new word in my dictionary. HTSU, you have certainly proved useful in normalizing my R-rated vocabulary