Store card denials???

[icyhot]

One time I applied for an Amex and one of the denial reasons was 

TOO MUCH OWED ON RETAIL ACCOUNTS

my utilization at the time was very low but most of my balances WAS from my Kohls and Macy's card. Do prime banks really not like to see store cards on a CR? This freaked me out so I closed all but 2 of the 7 I had.

[Anonymous]

You need to keep a good mix if cards and keep balances below 30 percent. That would take care of that but I would recon

[TheGardner]

There has been a post here and on another forum with analysts who both said having more store than majors does hurt.

[Anonymous]

I am I correct in assuming that the 2 you did not close are the ones with balances (Macy's and Kohl's)?  If they say "too much owed" I would think closing cards with no balance would not make a difference...they didn't say "too many retail accounts".

just my thoughts...

[icyhot]

Yeah but I didn't wanna run the risk of having too many and running up the balances for whatever reason, so I just closed the ones I didn't really want

[TheGardner]

Having a few would be fine. If they out weight your majors you will be considered more risky. I don't know why and don't recall anyone asking if they did I don't remember the answer, maybe profiles historically default more often with more store cards. Or perhaps a sign of previous credit trouble.

Good rule if the store you shop at often AND it has Better rewards than what another card would give then get it. Home Depot, Lowes, Walmart or target are places you may shop regularly and often times gives 0% interest for your larger purchases. All tires bad or mechanical issues and there's a card with 0% available not a bad idea..

Kohls or Victoria Secret where you shop 2x a year but nothing special outside the 1x discount probably not too worth it.

Of course everyone will have to decide on their own what makes sense to them. I wouldn't RUN from all store cards but definitely wouldn't apply for easy approvals. CCC also know how easy they are so they aren't impressed by 143 store cards and 2 capital ones and a credit one card

[Anonymous]

i just have one store card amex Macy's and maybe Lowe's soon!

[chalupaman]

Any store cards I have can actually grow or are at high limits already, though I did close two of those recently.

[ddemari]

I think store cards are fine if you shop at the places, pif and can manage lots of cards.

my impression of store cards has changed over the past few years. A lot of store cards offer some really good benefits, can grow SUPER high and a lot are cobranded mc/visas. I am an authorized user on an old navy visa opened up with my mom in 2003, it was just a store card then but a few years back received a visa. that card has a 25,000 credit line.

all of my store cards have nice credit lines except target. never any love, will be stuck at 300 for ever. 

[kdm31091]

Store cards are okay in moderation as long as they are not making up the majority of your file. Sure you'll see success stories on here from people with 20, 30, or even more store cards, but IMO, it's not the right way to go. Your profile should consist of mainly "regular use" cards, not store cards.

Now if you shop somewhere constantly and the store card would offer you a great benefit, it makes sense. Kohl's is a decent store card that gives out pretty good discounts to those who shop there frequently, for example. But if you only shop somewhere once in awhile, it's probably not worth it, and many stores offer free loyalty card programs that give you discounts without a credit card (Kohl's for example again, I have their free loyalty card and get plenty of emailed coupons).

So in short, if something really appeals to you, go for it. In moderation. As a general rule though, don't expect huge growth (though there are exceptions). Don't let it overrun your profile, and you'll be fine.