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Store card to improve my credit mix.

Senior Contributor

Re: Store card to improve my credit mix.

Comment applies to Macy's/Bloomingdale's.

 

There always has been a suspicion. Finally an insider came right out and said it.

New Contributor

Re: Store card to improve my credit mix.

Well the "damage" has been done already. I applied online last week and was approved for $600. I can live without the Macy's Visa, as long as the store card grows with me. By the way, I called their credit department today (the number they email to you to verify your identity and such) and asked about the advantage of applying in the store. She said it was all the same. I'll call a few more times during different shifts to see what the "consensus" is.
Senior Contributor

Re: Store card to improve my credit mix.

The insider also states that the greater proportion of the DSNB CSR's aren't very good.
Established Contributor

Re: Store card to improve my credit mix.

all store cards subtract from credit mix, they provide a revovling trade line for those that  don't have a major credit , any one with a pulse can get one if you a major credit card , don't get one for the sake of credit mix
People say "Only apply for credit you NEED"

I say "apply for credit you have PRATICAL use of"

I don't have AMEX card because I don't want a card that suffers from PMS
Senior Contributor

Re: Store card to improve my credit mix.


rbbyrbsn wrote:
all store cards subtract from credit mix, they provide a revovling trade line for those that  don't have a major credit , any one with a pulse can get one if you a major credit card , don't get one for the sake of credit mix

That's a pretty bold statement and generally incorrect. What about all the store credit that is available out there that offers you a 0% APR for 6 or 12 months? Is that bad? And no, unfortunately not everyone with a "pulse" can get a store credit card. 

Highlighted
Valued Contributor

Re: Store card to improve my credit mix.

They don't subtract from your mix, they HELP your mix. As a matter of fact, if you do not have a store card you could gain 10-15 points on your report, especially if a new account will not hammer your AAoA. I gained 10 points when I opened my Macys store card (1st store card) which more than balanced out the hit in the new credit and AAoA portions of the score. I am not saying this tradeoff is true for everyone but if someone is building a credit profile, I would recommend *ONE* store or gas card.

Moderator Emeritus

Re: Store card to improve my credit mix.

True, a lot of people see gains in their scores when they add cards.  I have and DH has.  You will see the same score change whether the card is a merchant (store) card or another card.  My second card was a store card (Macy's) and I lost 5 pts.  (Worth it!)  DH saw jumps as he added cards - but not when he added a store card.  All new cards affect your AAofA (negatively - so do some math and see how you'd fare) and your utilization (only a plus here - if you PIF).

 

Credit mix refers to combination of cc and installment loans.  There is no FICO ding for not having a store card.  FICO codes are published and there is not a code for "not having a merchant cc."  You can have scores in the 800's without a single merchant card on your CR's.

 

FICO does care whether or not you have a bank or national credit (CapOne, AmEx, Discover) card.  You only need one of these for FICO score happiness.

 

I love my Macy's card as well - absolutely great discounts on top of sale prices. App'd in store and received a $1,000 CL.  It's only a few months old and I am eager to sit back and let it age and watch it grow.  I don't know your scores but Macy's are known to be easy to get and are a good rebuilder card.  If this is only your second card, I would strongly consider other rebuilder cards that are more flexible than a merchant card.  A bank or CU builder card will be a great option for you to look at, as well.

 

Happy CC hunting!

Just puttin' syrup on something, don't make it pancakes.