Why are people so against store cards

[Kb109]

Probably because the APRs are so ridiculously high. The only store card I have is Overstock. They gave me a starting credit line of $14,000!!!!  That alone is reason enough for me to keep it, plus I shop on there frequently and take advantage of the 6-12 month 0% financing.

[Anonymous]

My wife and I are rebuilding, and we were able to triple our available credit thanks to overstock and jcrew. I got an express for me and she got a VS for her as well. AAoA isn't that important to us as the only open account we have is a 5 month old capital one. Everything else is new (was also approved for quicksilver last month). Our scores are only improving and in a year the AAoA will be meaningless, but our available credit and low utilization will be excellent. Additionally, as we are improving so we can buy a house, having a few thousand available with 24 months no interest from overstock will help when we move in and need a variety of small things. 

Long story short, for my situation, they are helpful (and soft pulls aren't bad either). But we aren't getting anymore than we have now (total 4). Going to garden everything for a few months while my last 2 paid baddies fall off my report, then going to start going for something like a venture or chase card, then lock up tight and prepare for the housing process next summer. 

[Anonymous]

 The problem I see with this theory is that available credit on store cards doesn't raise your ceiling on bank cards. You will still have utilization issues with bank cards regardless of limits on store cards.

[Anonymous]

Everyone has a different journey to get to the same score range. Two people with 740 scores, one might be marching along with a tidy amount, one might have played "go fish" and has an armload of new tradelines. Depending on what type of credit is desired next, those 2 consumers may be treated differently.

[CreditCuriosity]

Biggest problem I see with store cards are the apr%..  If someone is to start carrying balances on them they are committing financial suicide if they get in to deep, just like with any credit card if you run up balances, but it is just alot more dangerous with store cards if you can't control yourself.

[Striker1]

I don't think store cards are BAD.  Bad habits are bad, and people can develop bad habits with any card.  Most people I know do not know much at all when it comes to credit scores, how credit works or what cards they should apply for, etc.. They do however, have store cards which provide some great benefits, if you actually shop at those stores and only use it if you were going to buy something there anyway. 

Years ago, before I found this forum and educated myself, we took part in a course at our church (I'm sure many of you know what I am referring to).. and one week people were encouraged to cut up their credit cards to keep them from using them. Looking back I am sure many people probably did NEED this as they weren't disciplined enough to pay them in full, but knowing what I know now I would not do that. However, it was shocking to me to see how many store cards people had, and all with balances (with high interest). I think the coupons/discounts that come along with having certain store cards encourage unwarranted/unecessary spending, spending that would not occur had you needed to pay cash for it. But that is not the fault of the store card, that's just bad habits.

Store cards can be very useful and provide the consumer with a great deal, but just like any other card you need to use them wisely.

[Anonymous]

IMO nothing at all wrong with store cards from stores you actualy frequent and make purchases. Loading up on a bunch of useless cards is what a lot of the pros see as unneccessary. But this is your credit journey, your finances and ultimately, your decision.

[Anonymous]

This is only my personal opinion but I see the word "addiction" used in this thread and often in others.  If I use the term in the "dictionary" sense, I should best use another word or phrase since I'm neither a qualified doctor or psychologist who can make that determination.  Maybe "addiction-like" is a better term to use.

[Anonymous]

Once upon a time, when I was 18, my dad told me to start building my credit - he also said he wasn't co-signing anything and didn't like being asked a lot of questions.

My credit journey had begun 

Got a credit card from a local CU aimed towards students; $500 SL, easy.  Fast-forward a year or so.  I was at Nordstrom buying a jacket I couldn't find anywhere else and the cashier asked if I wanted to sign up for their "store card".  She explained to me that it was "just like a credit card" AND I would get a one-time discount on my purchase as well as some other perks.  I did it for the discount.  Put in my SSN and a few minutes later I walked out the door with my Nordstrom store card with a $2,000 limit.  Easy peasy.

A few weeks later,  I tried to use my Nordstrom store card again.  Cashier ran my card and it declined (forgot what the message was - error/invalid/???)  Multiple times.  I was upset.  Ended up using my CU credit card.  

When I got home, I jumped on my computer and started searching for answers.  I found them.

In my head I was thinking:  "Ohhhhhhhh.  THAT'S why my Nordstrom store card didn't work at the grocery store."

I cancelled the card a month or two later after I paid it off and made sure the reported balance was $0.  I never told anyone.  The internal embarassment...  I vowed from that day on to "hate" store cards.

True story.  

All jokes aside, store cards just aren't for me.  I don't shop at one location enough to apply for their card;  or one of my other credit cards would earn nearly as much in rewards to negate any reason for applying.  

[Anonymous]

If it doesn't offer any sort of incentive, I wouldn't keep it.  I would probably try to get Amazon Store Card in the not too distant future since they now offer 5% uncapped to Prime members (i.e. Me!)  Before that the card was pretty useless which is why I canceled it.  Walmart I have now, but will probably drop.  

Likely I'll have 3 regular prime cards (including the Chase Freedom I have now) and 1-2 useful store cards (maybe getting Amazon back and keeping Care Credit which isn't really a store card, but tons useful for stuff that would be in collections right now).

Most store cards don't offer the kind of incentives that major banks do.  Therefore, the great majority are useless.  Great for rebuilding, but otherwise unless it's Amazon or Lowe's or something that offers those kind of benefits, it's not worth it.