No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I currently have all the big-name cards (Visa/MC/Disc/AmEx), but I do not have any store-specific cards.
My question is: What is the point in carrying a card that can only be used at one store/chain - especially since those same stores also accept the major network cards?
I have read somewhere, that having a store-specific card might help with the "Mix of Credit Types", which accounts for 10% of the FICO score, but why would one "revolving" account be considered any different than another for scoring purposes ?
Since store cards typically offer low-limits and high APRs, is it actually worth the hard-pull to apply for one ?
@NonSufficientFunds wrote:I currently have all the big-name cards (Visa/MC/Disc/AmEx), but I do not have any store-specific cards.
My question is: What is the point in carrying a card that can only be used at one store/chain - especially since those same stores also accept the major network cards?
I have read somewhere, that having a store-specific card might help with the "Mix of Credit Types", which accounts for 10% of the FICO score, but why would one "revolving" account be considered any different than another for scoring purposes ?
Since store cards typically offer low-limits and high APRs, is it actually worth the hard-pull to apply for one ?
If you shop at a specific store heavily (Like I do Gordman's) you will get 10, 20, even 30% off coupons frequently. Other chains that have larger priced items (Best Buy, Nebraska Furniture Mart, etc) frequently offer special interest offers, so buying a large ticket item is cheaper financing since you don't have to pay interest for a certain amount of time.
Other than the discount coupons and the special interest they offer, which I don't really take advantage of, I used them as a way to build credit. When I started rebuilding and no one else gave me unsecured credit, Walmart did. I started with a CL of $150 which has now grown to $1700. Once you're credit is good enough to get regular unsecured credit cards there really is no need for store cards. I have no reason to apply for any store cards, I just keep the Walmart card, because they don't charge an AF anyway. Store cards are still revolving credit so they don't change your "mix of credit types".
Special deals only store card holders can get and you need a few for the mix of credit category of FICO
@Raiders1 wrote:Other than the discount coupons and the special interest they offer, which I don't really take advantage of, I used them as a way to build credit. When I started rebuilding and no one else gave me unsecured credit, Walmart did. I started with a CL of $150 which has now grown to $1700. Once you're credit is good enough to get regular unsecured credit cards there really is no need for store cards. I have no reason to apply for any store cards, I just keep the Walmart card, because they don't charge an AF anyway. Store cards are still revolving credit so they don't change your "mix of credit types".
+1 to this. I imagine this is the number one reason people get store cards. Best Buy was one of my first cards, I got it when nobody else would bat an eye at me
+1 they are a great way to build credit considering the CL increases are great
tattooedhusker is right -- deals, extra sales, coupons, etc. For instance, the Target card gets you 5% off everything every time you shop.
but beyond those cases, there's really not much point. I got a Sears card ages ago because getting it meant i got free delivery on my fridge. But they canceled it years ago for non-use. Macy's, same deal when I bought some furniture. Haven't used it in years, but they keep it open. Both Macy's & JCPenney have special offers that are only for cardholders.
my current rule of thumb: unless i can get something worth $100 out of opening it, I won't bother with a store card.
@NonSufficientFunds wrote:I currently have all the big-name cards (Visa/MC/Disc/AmEx), but I do not have any store-specific cards.
My question is: What is the point in carrying a card that can only be used at one store/chain - especially since those same stores also accept the major network cards?
I have read somewhere, that having a store-specific card might help with the "Mix of Credit Types", which accounts for 10% of the FICO score, but why would one "revolving" account be considered any different than another for scoring purposes ?
Since store cards typically offer low-limits and high APRs, is it actually worth the hard-pull to apply for one ?
I keep the Walmart card around because they run 12-24 month 0% APR offers throughout the year.