09-06-2009 11:05 AM
09-06-2009 01:42 PM
09-06-2009 01:49 PM
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.
09-06-2009 06:58 PM
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.
09-07-2009 04:09 AM
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!