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Is it still advisable to get store cards to help your credit score? I've recently heard conflicting answers.
And any store cards have lower APRs or better benefits than others?
This is hard to answer without knowing your goals or current profile. Mind sharing more?
You will always get conflicting stories; many like store cards and others stay clear from them. As far as benefits I’d suggest googling and searching in the search box on the forum. I mean no disrespect but it gets highly annoying scrolling through the forum with the same questions being asked over and over or reading someone’s every thought.
If you shop often enough to merit having a dedicated credit account for the merchant. Some have loyalty programs for discounts.
@Anonymous wrote:If you shop often enough to merit having a dedicated credit account for the merchant. Some have loyalty programs for discounts.
Perhaps I wasn't specific enough. What my question is, is do you need a mix of regular credit cards and store cards to improve your credit.
@Anonymous wrote:I mean no disrespect but it gets highly annoying scrolling through the forum with the same questions being asked over and over or reading someone’s every thought.
No offense taken. But you don't have to read it and post to it if you are annoyed by it....also, no disrespect.
I like to have a couple store cards that I would use normally. They do give out much better rewards plus bigger bonus points when you shop on their sale days.
@Anonymous wrote:You will always get conflicting stories; many like store cards and others stay clear from them. As far as benefits I’d suggest googling and searching in the search box on the forum. I mean no disrespect but it gets highly annoying scrolling through the forum with the same questions being asked over and over or reading someone’s every thought.
This -I mean no disrespect but it gets highly annoying scrolling through the forum with the same questions being asked over and over or reading someone’s every thought.
Some people are new to the forum and may ask questions that have been asked over and over again. Yes, it can be frustrating but they need answers to their questions also. It is best to move on from the thread if you are bothered by the questions asked.
@Repairman wrote:
@Anonymous wrote:If you shop often enough to merit having a dedicated credit account for the merchant. Some have loyalty programs for discounts.
Perhaps I wasn't specific enough. What my question is, is do you need a mix of regular credit cards and store cards to improve your credit.
To answer what I bolded: no, you do not have to have a mix of store cards and bank cards. You can end up with an excellent credit rating with a couple credit cards and nothing else, but a perfect credit rating comes with a mix of revolving credit and installment loans and a long AAoA with a prefect payment history.
@Repairman wrote:
@Anonymous wrote:If you shop often enough to merit having a dedicated credit account for the merchant. Some have loyalty programs for discounts.
Perhaps I wasn't specific enough. What my question is, is do you need a mix of regular credit cards and store cards to improve your credit.
No.
Store credit cards are at the (almost) bottom of the credit hierarchy.
The credit lords live thusly (top to bottom) : mortgage, car loans, student loans, misc instalment loans, big-bank credit card, store credit card, consumer financial agencies.
It's good to have a mix but it's recommended to move up. If you have only store cards, get a few big bank cards. If you have only bank cards, get an instalment loan in the mix.
However, mix is a very small component of the overall picture. It's easy to get 750+ by not having more than one kind of debt. 800+ may be difficult. But when you're 750+, you'll start getting approved for most products and at pretty favorable rates.
That said, people like getting store cards because (a) they get good value (read: discounts) out of them and (b) they're easy to get sometimes, so people app for them when big banks aren't giving any cards.