Store cards differences

[Anonymous]

Good Morning!

So I am have been reading the forums, and something tickled my curiosity.

It seems that many people feel store cards are a waste of time and hurt your report (some people, not all)

But when talking about the above mentioned cards it looks like Comenity Bank and Synchorny are the ones to blame.

What about store cards backed by Cap1, Citi, Chase, etc..?

DH Has a Kohls charge, A menards- all reporting like normal cards because they are backed by cap1.

When I looked at his older accts that we IIB,  the comenity and synch report differently.

So, if a card is backed by a major bank, is it still considered a "store card"

[takeshi74]

A store card is a store card regardless of the creditor.  Whether it "hurts" or not depends on the condition of the tradeline and not the name.  Whether a store card is a waste of time is for each individual to determine based on the specific needs/wants of the individual -- just as it would be with any credit or charge card.

It's the consumer finance accounts that are known to have a negative impact.

[Anonymous]

Hmmm, that makes sense.

Thanks for the clarification.

DH is having a hard time rebuilding due to burning so many bridges. Cap1 is the only one giving him love, store cards and regular tradelines.

I had hoped I was wrong.  Oh well, he will just be a longer rebuilder it seems, Thanks!

[Anonymous]

I'll also add that the store cards from Comenity can be bad when people overdose on the Shopping Cart Trick and end up with lots of cards with $250 limits.  A couple of them are fine to help rebuilding but just don't go crazy with them.

[Anonymous]

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@Anonymous wrote:

Good Morning!

It seems that many people feel store cards are a waste of time and hurt your report (some people, not all)

So, if a card is backed by a major bank, is it still considered a "store card"

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Store cards are basically any card you can only use in a certain chain of stores,shops,services.  Whereas a "real" credit card like VISA/MC/AMEX/DISCOVER are pretty much accepted everywhere.

"Store cards" are supposed to report on your credit  as "charge account"

"Credit cards" report as "credit card" on your credit report.

Although there are exceptions like Target and Shell cards which report as "credit cards" even though they're pretty much store cards.

I ain't gonna lie, I have probably 45 store cards from my $250 Buckle up to my $7500 care credit store card.

I also have Discover, BofA, USBank, Chase and AMEX.  I'm gardening now but will apply for a Sallie Mae and Ring card in June.

Everybody has different opinions and I respect that.  

For myself,I gobble up any and all credit as long as it's not costing me money to have it (Annual fee)

[chwebb1]

My understanding is that it's actually helpful to have at least one store card to help with your credit, because of the mix of account types. I personally don't have any (because with an AMEX, Discover, MasterCard and Visa, who really needs one?) although I have considered getting one for scoring purposes. The only store I personally shop at enough is Target, but I know that most people get crap limits at Target, and someone else said it reports as a credit card, so I guess that's out for me. And I get 5% cash back at Target on my Sallie card anyway (up to $250/month in purchases). And the BoA cash rewards gives you 2% CB at Target (or more if you have accounts with them, or if you are a member of Preferred Rewards).