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Why do people use store cards?

Valued Member

Re: Why do people use store cards?


j_casteel wrote:

soleilbabe wrote:

I don't like store cards b/c they force you to be loyal to a store, but I guess if you're already shopping there, why not? I still haven't convinced myself to apply though....VS and Macy's sound nice lol


they aren't forcing you to be loyal...you chose to apply for the card in the first place. also, people get the store cards because they already are frequent shoppers of that store anyway.


You missed what I was saying. By they I meant the Store Card not the store. Once you have it in your wallet, it is my personal opinion that you'll shop there first as opposed to another store who may have a better deal without using a store card.

In my wallet: Discover More $11,300 11/2/12 | Chase Freedom $500 11/8/12

Initial 10/14/12 (Free Score): TU 621 /EQ 621 /EX 618
Current: 1/13/13 (Free Score): TU 708 /EQ 677 /EX 698
Initial EQ FICO: 670 11/2/12
Current EQ FICO: 698 1/13/13

Message 31 of 53
Frequent Contributor

Re: Why do people use store cards?


navigatethis12 wrote:

Roarmeister wrote:

+1 

 

Anything you can get in a store card, you can get in a regular cc.  Rewards, points, cash back, etal.  Store cards often have the highest interst rates.  Why would any sane person WANT to keep a card where you might have to pay a 29% interest vs. 7 or 9% --- why????  How are store cards easier to get?  Perhaps for people with very low credit scores and who only want/get a few hundred $ of credit.  Not me - I was a recognized card with all the features available and high credit limits instead of these silly micro-limits I hear people talk about so much.

 

Store cards have no place in my wallet.


Did you ignore everything that everyone said in the thread?



No need to get nasty and ignorant....

 

- I have an opinion, you have an opinion.  Everyone has different needs and ability to pay or use ccs.

- Store cards in my country don't have ANY of those features that would make them more useful than regular cards.

- Not everyone PIF every month, that's a fact of life.  In fact more people DON'T PIF than those that do.

- If you think $5k is a very high limit, you are mistaken.  My lowest regular card limit is $9k.  My very first CC had a opening $2.5k limit 25 YEARS AGO.  I consider any CL below a $1000 to be mickey mouse and not worth the printed paper statements they come with.  I recognize that those with beginning credit or rebuilding credit have very different needs so I won't belittle those users.

- If I need to do a financing, I will use my personal line of credit with far lower rates than any cc so an Amazon card that you use as an example is as useless as a " "

 

Like I said - store cards have no place in my wallet.  YMMV but don't get ignorant about it.

 


Starting Score: 732 October 2007; Current Score: EQ 836; TU 806, November 2017; Oldest Reporting EQ Account: 15.8 years; EQ AAoA: 8.0 years; Typical credit utilization 1.8% typical single card utilization 10.6%
Message 32 of 53
Established Contributor

Re: Why do people use store cards?

Recently opened an Old Navy card, as my kiddos love their clothes, and they're good quality. I love getting the extra % with the frequently sent coupons they send , as well as other goodies for using the card. Smiley Happy

 

Like you said, everyone is different, if I'm going to shop there, might as well get the perks with the card. Smiley Happy

 

And thank you for not belittling me, as I am building! Smiley LOL

"When you are down in the mouth, remember, everything turned out ok for Jonah."

Current FICO's(by lender) 10/9/12
EX:649, EX:651, TU:683
Message 33 of 53
Valued Contributor

Re: Why do people use store cards?


Roarmeister wrote:




No need to get nasty and ignorant....

 

- I have an opinion, you have an opinion.  Everyone has different needs and ability to pay or use ccs.

- Store cards in my country don't have ANY of those features that would make them more useful than regular cards.

- Not everyone PIF every month, that's a fact of life.  In fact more people DON'T PIF than those that do.

- If you think $5k is a very high limit, you are mistaken.  My lowest regular card limit is $9k.  My very first CC had a opening $2.5k limit 25 YEARS AGO.  I consider any CL below a $1000 to be mickey mouse and not worth the printed paper statements they come with.  I recognize that those with beginning credit or rebuilding credit have very different needs so I won't belittle those users.

- If I need to do a financing, I will use my personal line of credit with far lower rates than any cc so an Amazon card that you use as an example is as useless as a " "

 

Like I said - store cards have no place in my wallet.  YMMV but don't get ignorant about it.

 


I was not being ignorant. People gave multiple reasons to have store cards and you said you can get all of those things with a regular credit card, and that is false. I do not know what country you are in, but in the United States, they do have benefits people have pointed out. If you do not plan on paying cards in full, you have no business using a card with a high rate. That would be idiotic. I never said 5000 was a high limit, it is not even the highest I have. I said it was more than the few hundred you said store cards give. I have only had credit for two years, so I reckon I'm doing pretty well for being so young. As should not need to be said, what is considered a high limit differs from person to person. There are people on here who are excited to get approved for a 1000 line. Everyone starts somewhere.

 

Please explain how using a personal line of credit is better than having no interest at all? Of course you can do what you want, but I do not see why someone would elect to pay interest when they do not have to. I apologise if you took offence to the post, but it was not intended that way.

Message 34 of 53
Mega Contributor

Re: Why do people use store cards?

GE store cards tend to help people with nice CLI's and grow quite often. I live my store cards.



EQ FICO 548 3/3/16
Message 35 of 53
Contributor

Re: Why do people use store cards?


Razeus wrote:

I see people here always touting Walmart, Home Depot, Macy's, JCP, etc.

 

Why would you use a store card over just a Visa, MC, Discover or AMEX?  Do they give a discount with each purchase?  Coupons?


well this month I purchased over $500 on my JCP card I am trying to maintain my Gold Card status with them also I get $30 for that $500 I spent sometimes you just make the choice between one benefit or another.  In this case maintaining my gold status was more important to me then 5% cash back that I can get with my Discover More card.

AMEX Platinum, AMEX Blue cash (10k), AMEX Delta (10k), US Bank Premier Line (14.5k), US Bank Cash + (7.5k), Chase Freedom (5k), Fred Meyer Rewards Visa (7.5k), US Bank Flex Perks Travel Rewards (5k), Discover IT (9.5k), Chase Sapphire Preferred (8k), Alerus Financial Visa Signature issued by Elan (10k), BofA Cash Rewards (10k), Citi Thankyou Pref (6.5k) TU FICO Score = 807, EQ FICO Score = 780, EX FICO Score = 780,
CreditKarma score = 785, CreditSesame score = 773, Vantage = 903
Message 36 of 53
Established Contributor

Re: Why do people use store cards?


RonDawg wrote:

well this month I purchased over $500 on my JCP card I am trying to maintain my Gold Card status with them also I get $30 for that $500 I spent sometimes you just make the choice between one benefit or another.  In this case maintaining my gold status was more important to me then 5% cash back that I can get with my Discover More card.


The question is:  Would you have spent 500$ otherwise?  Would you have actually spent money if you weren't trying to maintain some sort of milestone status?

 

 

Message 37 of 53
Moderator

Re: Why do people use store cards?


distantarray wrote:

payingoffdebt001 wrote:

I knew someone that couldnt get a store card due to past credit mis-use a couple years ago with several stores and told me this same line.  I felt they were jealous when they heard of the easy CLI's I would get and how easy it was for me to keep my utilizaion low with them compared to the way it is with a Logo Credit card that is very easy to use anywhere so tempation is always greater..


Don't always rely on your CLI from store cards, the best credit cards companies like Chase do not factor in utility of store cards AT ALL.

 


I don't think any single person on this forum can make that assertion unless you happen to work, currently, in all of the underwriting departments of the best credit cards companies.

 

It wouldn't surprise me one bit if some internal models discount store cards, even FICO supposedly treated them differently in the past, and might still now in their risk calculations; however, I don't think stating that they're worthless for future credit approvals from premier as far as utility goes can be demonstrated let alone proven.

 

 

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Message 38 of 53
Contributor

Re: Why do people use store cards?


ccnewcc wrote:

RonDawg wrote:

well this month I purchased over $500 on my JCP card I am trying to maintain my Gold Card status with them also I get $30 for that $500 I spent sometimes you just make the choice between one benefit or another.  In this case maintaining my gold status was more important to me then 5% cash back that I can get with my Discover More card.


The question is:  Would you have spent 500$ otherwise?  Would you have actually spent money if you weren't trying to maintain some sort of milestone status?

 

 


Well lol Actually I spent over $500 and well yes I would have but it would have been on the Discover Card. Smiley Happy
AMEX Platinum, AMEX Blue cash (10k), AMEX Delta (10k), US Bank Premier Line (14.5k), US Bank Cash + (7.5k), Chase Freedom (5k), Fred Meyer Rewards Visa (7.5k), US Bank Flex Perks Travel Rewards (5k), Discover IT (9.5k), Chase Sapphire Preferred (8k), Alerus Financial Visa Signature issued by Elan (10k), BofA Cash Rewards (10k), Citi Thankyou Pref (6.5k) TU FICO Score = 807, EQ FICO Score = 780, EX FICO Score = 780,
CreditKarma score = 785, CreditSesame score = 773, Vantage = 903
Message 39 of 53
Senior Contributor

Re: Why do people use store cards?


S7 wrote:

Recently opened an Old Navy card, as my kiddos love their clothes, and they're good quality. I love getting the extra % with the frequently sent coupons they send , as well as other goodies for using the card. Smiley Happy

 

Like you said, everyone is different, if I'm going to shop there, might as well get the perks with the card. Smiley Happy

 

And thank you for not belittling me, as I am building! Smiley LOL


I am a huge fan of getting store cards where you already like to shop!   Not the other way around.

 

I personally like the 0% deffered interest deals many stores offer for 6, 12, 18 months for purchases over a certain amount.  Big perk you can not get otherwise unless you open a new CC and you can do that only so many times.

 

 

 

.  

 

Message 40 of 53