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Store Cards: Still Necessary?

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kdm31091
Super Contributor

Re: Store Cards: Still Necessary?

I do not think store cards are ever "necessary". If you have some "regular" credit cards and perhaps an installment loan, managed well, you'll have a high score. You don't need a store card to accomplish this.

 

Now, if there's a store card you'll benefit from, by all means, get it if you want it. But the "mix of credit" portion of your score is relatively small, so don't expect any huge improvements.

Message 41 of 71
Anonymous
Not applicable

Re: Store Cards: Still Necessary?


@kdm31091 wrote:

I do not think store cards are ever "necessary". If you have some "regular" credit cards and perhaps an installment loan, managed well, you'll have a high score. You don't need a store card to accomplish this.

 

Now, if there's a store card you'll benefit from, by all means, get it if you want it. But the "mix of credit" portion of your score is relatively small, so don't expect any huge improvements.


IMO, sometimes u need those small boost just to get into the next tier. 

Message 42 of 71
EdMan63
Established Contributor

Re: Store Cards: Still Necessary?

I hear what Credit Flunky is saying about the hit to AAoA and all but I guess for me, the whole point is to build slowly. Slow and steady wins the race the way I look at it however you decide to do it. With credit it really just comes down to whatever your goal and objectives are. In CF's example about taking a big hit in 5 years by adding 1 card, if you stagger your apps to say 1 or 2  a year, your tradelines will grow and  your AAoA will remain more consistent as opposed to app sprees. Isn't the whole point to have a portfolio of long term cards that benefit you that you can grow over time? Be that 5 or 25. Every article you read will tell you to add credit sparingly and only as needed. myFico members are not the norm of everyday consumers of credit.

 

Many people here talk about getting many cards at once and letting it grow which is ok, but are they really going to not want anymore cards over time? The way I see it, it's more fun to have something to look forward to and keeps you more on track with long term goals. The truth is many just want to app and they rationalize it by saying they're "rebuilding". Rebuilding takes time. Sure I would love for my score to hit 750 in a month. But I know its not going to happen. But I can't force it by being irresponsible to myself, epecially if that behavior got me in trouble in the first place.


Message 43 of 71
jamesdwi
Valued Contributor

Re: Store Cards: Still Necessary?

Walmart 10k  CL

Sams Club MC was store card at 10k

5x Comenity cards each with a CL between 2.5k and 3.4k

Paypal   6k 

Amazon Store card  5k 
Home Depot store 4k

Best Buy  store 3k

all at least 1 year old except Bestbuy (6 months), some as old as 4 years. 

 

Making my AAoA nearly bullet proof

 

 

Has not effected my ability to get good CL's   or approvals

 

20k Southwest card

15k BCP

15k Venture

14.8k  FNBO discover

12k Fidelity AMEX

10k CSP

8.5k Discover IT

...

 

all with just 6 years of credit card history. 

 

Cards: Chase Southwest 20k & CSR 17k & CSP 10k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Landmarkcu Personal Loan 10k
Message 44 of 71
Anonymous
Not applicable

Re: Store Cards: Still Necessary?

Isn't considered an "upgrade" to turn you store card into a similarly branded visa/MC/AMEX? Is there some significance in how that card is judged by other lenders that look at your report? Does it even show a distinction? 

Message 45 of 71
jamesdwi
Valued Contributor

Re: Store Cards: Still Necessary?


@Anonymous wrote:

Isn't considered an "upgrade" to turn you store card into a similarly branded visa/MC/AMEX? Is there some significance in how that card is judged by other lenders that look at your report? Does it even show a distinction? 


depends on the lender and the card, for example  Walmart store to the MC version creates a new TL with a new open date, so the store card appears closed. and wouldn't be taken into consideration unless the underwriter was looking for that, I also doubt any automated approval system gives it any special weight. 

but other cards may just change the type of the card, like in the case when you are upgraded from a regular visa card to a signature card. 

 

 

Cards: Chase Southwest 20k & CSR 17k & CSP 10k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Landmarkcu Personal Loan 10k
Message 46 of 71
Anonymous
Not applicable

Re: Store Cards: Still Necessary?


@EdMan63 wrote:

Slow and steady wins the race .


Slow and steady costs you money.

 

When rebuilding credit, the quicker you can get to a higher score, the better your rates.  Because I did a fasttrack to a higher score,   I already get the best rates on most credit cards I get except for a few odd exceptions like my 16% USAirways card.  Most of the time I'll get the lowest advertised rates.

 

Also, If you are purchasing a home or a car, that difference in rates you get with a higher score is thousands if not tens of thousands of dollars.  

 

Remember when you add credit cards slow and steady (in rebuilding), you take 2 steps forward but 1 step back due to AAoA hit every time.  

 

Hardworking hare beats the tortoise every time.

 


@EdMan63 wrote:

The way I see it, it's more fun to have something to look forward to and keeps you more on track with long term goals


I agree, but that's the beauty of store cards.  I don't shop at most of those places, I got them as a tool to rebuild quickly. I don't care about most of my store cards; they are a tool and that's it.  I don't sit there and "manage" them...they manage themselves in the bottom of my sock drawer.  Smiley Happy

 

As for waiting in anticipation, I would like the Ritz Carlton card but recently got the IHG card so I'm waiting a bit...and it's pretty exciting.  

 

The fun is still there, it's even more fun when I can add cards without worrying about denials AND I don't have to worry about lowering my AAoA..

Message 47 of 71
chalupaman
Super Contributor

Re: Store Cards: Still Necessary?


@Anonymous wrote:

@EdMan63 wrote:

Slow and steady wins the race .


Slow and steady costs you money when rebuilding credit.  The quicker you can get to a higher score, the better your rates.  Because I did a fasttrack to a higher score,   I already get the best rates on most credit cards I get except for a few odd exceptions like my 16% USAirways card.  Most of the time I'll get the lowest advertised rates.

 

Also, If you are purchasing a home or a car, that difference in rates you get with a higher score is thousands if not tens of thousandsd of dollars.

 


@EdMan63 wrote:

The way I see it, it's more fun to have something to look forward to and keeps you more on track with long term goals


I agree, but that's the beauty of store cards.  I don't shop at most of those places, I got them as a tool to rebuild quickly. I don't care about most of my store cards; they are a tool and that's it.  I don't sit there and "manage" them...they manage themselves in the bottom of my sock drawer.  Smiley Happy

 

As for waiting in anticipation, I would like the Ritz Carlton card but recently got the IHG card so I'm waiting a bit...and it's pretty exciting.  

 

The fun is still there, it's even more fun when I can add cards without worrying about denials AND lowering my AAoA..


I'm glad you're able to explain the logic behind your methodology. I've seen someone who started out just getting store cards to get discounts off stuff and using for that purpose and gradually getting more overtime and now that person has double digit limit Discover and Amex cards but they did it over several years. I also see your point that it's really hard to get your AAoA lower when you've had a bunch of accounts age at the same time but I think other people here raise good points as well.

Tradelines: Macy’s - $18k, Penfed Power Cash Rewards - $10k, Ethan Allen (TD Bank) - $5.7k, Kay Jewelers - $5.5k, Appliances Connection - $5.3k, Jared - $5.25k, Best Buy (Citi) - $5k, Dell Preferred Account - $3.5k, Samsung - $3.2k, Firestone CFNA - $3.2k, Capital One Platinum - $3k, Mercury MC - $2.25k, Williams Sonoma - $2.1k, Wayfair (Fortiva) - $2k, Amazon Store Card - $1.8k, Apple Card - $1.7k, NFCU cashRewards - $1.5k, CareCredit - $1.5k, B&H Photo - $1.5k, Adorama - $1.25k, Ebay MC - $1k, Sam’s Club MC - $1k, American Eagle - $1k, Ollo MC - $600, Mission Lane Visa - $500, NY & Company - $500, Walgreens - $500, Home Depot - $500, Target RED Card - $500, CapOne Secured MC 0 AF - $500, Penfed Overdraft LOC - $500

Current FICOS: Mid 640s-50s on all reports, Ch 7 BK D/C Aug 2019
Starting scores: EX - 534, EQ - 574, TU - 516 | Total TLs: $91k approx | Total Utilization: 17%, getting this back down
Message 48 of 71
Repairman
Established Contributor

Re: Store Cards: Still Necessary?


@Anonymous wrote:
 I don't sit there and "manage" them...they manage themselves in the bottom of my sock drawer.  Smiley Happy
Do you not have a problem or concern of creditors closing your accounts for lack of activity? Is it ok to not use some of your cards...ever?

 

Message 49 of 71
Anonymous
Not applicable

Re: Store Cards: Still Necessary?


@Repairman wrote:

@Anonymous wrote:
 I don't sit there and "manage" them...they manage themselves in the bottom of my sock drawer.  Smiley Happy
Do you not have a problem or concern of creditors closing your accounts for lack of activity? Is it ok to not use some of your cards...ever?

 


Some gets closed for inactivity and some don't. 

Message 50 of 71
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