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kyobakes
Posts: 59
Registered: ‎04-28-2009
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store card vs. store card visa/mc

I'm just curious if someone can enlighten me:  Let's say I were to get a store card's visa/mc equivelant, does that report to the CRAs as a store card or a credit card?  I'm just curious as to how this works for the "mix."  Or, does one usually have to settle for a low CL actual store card?
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pattycake
Posts: 760
Registered: ‎04-30-2007
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Re: store card vs. store card visa/mc

If I'm not mistaken, stores' Visa/MC are usually backed by a big bank, in which case they are considered "bank cards."  That has a positive effect on your FICO scores. 
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: store card vs. store card visa/mc

If a card has both a store/ oil company name AND a Visa/ MC/ Discover/ AmEx logo, it counts as a bank card.

So a straight Sears card is a store card; a Sears MC is a bank card. A Target Red card is a store card; a Target Visa is a bank card. Etc.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: store card vs. store card visa/mc

Macy's Visa is both a store card and a bank card - it reports as two separate TL's with separate CL's. So does Bloomingdale's Visa.
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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: store card vs. store card visa/mc


creditwherecreditisdue wrote:
Macy's Visa is both a store card and a bank card - it reports as two separate TL's with separate CL's. So does Bloomingdale's Visa.

OK, you got me on that one. Well, on those ones.

But they're the exception, and they are acquired in an unusual way.

Another rule of thumb is that if you can only use a card at that store/ gas company, or an allied business, it's a store card. As pattycake mentioned in another thread, you can't use a Target Red card at McDonald's. Thus, a store card.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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kyobakes
Posts: 59
Registered: ‎04-28-2009
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Re: store card vs. store card visa/mc

can someone provide me with a link of some sort or provide me more information as to how the "mix" works?
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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: store card vs. store card visa/mc

If you're talking about whether a store card, in addition to bank cards, helps your scores by broadening your mix of credit types, we can't. This has been a topic of ongoing debate forever. There used to be a reference to this on the Education tab here on the myFICO site, but it disappeared during one of the (many) redesigns.

It doesn't make sense to me. I would have thought that it would be the reverse: that if one had nothing but store cards, and finally got a bank card (a higher-risk card as it can be used in more places), that would result in your score rising. I don't get how adding a store (or oil company) card to existing bank cards makes you look better. It seems completely illogical. But there have been anecdotal examples of it helping, so I just pass it along. It's not huge, that's for sure.

For the topic of credit mix in general (revolving, installment, mortgage), try this:

What's in Your Score

Types of Credit Used

* Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)


Types of credit used (credit mix) makes up approximately 10% of your scores.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: store card vs. store card visa/mc


kyobakes wrote:
can someone provide me with a link of some sort or provide me more information as to how the "mix" works?

This thread is informative, but may not end your confusion:

 

     http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=162058&view=by_date_as...

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beamMEup
Posts: 4,470
Registered: ‎12-31-2008
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Re: store card vs. store card visa/mc

I worry that believing that store cards are beneficial to the mix and FICO score can cause people to take actions that they may not need to.  You may or may not want a store card – but the reasons for having one should be clear to the one who app's.

 

Although much of FICO scoring is under wraps, the FICO codes are published. 

They want you to have an open revolving account with a bank or national credit card co.  (That’s code #3 – you're dinged if you don’t).

They want you to have activity on that bank or national account (Code #15 – dinged if you don’t)

They want you to have a revolving account (That’s code 16 – dinged if you don’t). 

By having a bank card, you hit two birds with one stone (#3 and #16).  By using it, you meet the requirements of #15.  After one bank card is in place, you don’t have to worry about whether a card is a store or bank card.  FICO does not have a code for and does not ding you for not having a store (merchant) card.

 

That being said, there are some advantages to store cards.  For rebuilders, they tend to be easier to be approved for, may have higher CL’s than rebuilder bank cards, and tend to be long-lived so they add to your AAofA over time.  Some store cards offer customer perks.  So bank cards and store cards both have a niche.  Bank cards definitely help your FICO score in and of themselves.  Store cards can help with higher rebuilding CL’s, long-term AAofA and cardholder perks.  You can (and some may argue should) get to the 800’s without a single store card in sight.  DH was at 802 with one ($500CL) bank card only.

 

I’m a rebuilder – so I’m quite fond of my store cards.  But I did not receive a FICO score increase--in fact I gained many points with my first bank card, but lost points with my first store card.  DH and other posters have had the same experience.  Mine is a Macy’s and it serves my needs well – but not because of FICO scoring practices.  I also have GEMB store cards – again because I’m a rebuilder and they meet my needs.  I have one bank rebuilder card, an Orchard.  I will not cancel my Orchard in spite of its AF, until I open another bank card – because bank cards do impact your FICO score.

 

The only place I’m seeing how the account is showing up for the CRB’s is on my CCT inquiry page.  Is anyone finding a better place – maybe one that shows all active accounts?  For what it’s worth, these are the codes that show up on our reports:

 

Cabela’s:  National Credit Card Co.

Cap One:  Bank Credit Card

FIA CSN (Bank of America):  National Credit Card Co.

GEMB (Care Credit Card):  Sales Financing

GEMB (Dillard’s Store Card):  Complete Dept. Store

Golden West Credit Union (Visa):  Credit Union

HSBC (Orchard):  Bank Credit Card

Kroger (1-2-3 CC):  All Banks

Macy’s Store Card (mine):  Dept & Variety Stores

Macy’s Visa (DH):  Dept & Variety Stores

 

Well, that was a bit long - I"m feeling the need to Pepsi-up for my daily walk :smileywink:.

 

Good luck to OP and whatever you decide to go for -- great score increases in the past few months – way to go!!!!

Just puttin' syrup on something, don't make it pancakes.
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kyobakes
Posts: 59
Registered: ‎04-28-2009
0

Re: store card vs. store card visa/mc

if you go to the "accounts" tab on your CR, then expand detail on accounts, there is a section that says "loan type."  It changes for accounts.

 

my target card is a "charge account."

 

discover, citi, chase and CU card are listed as "credit cards"

 

overdraft protection is listed as "line of credit," then instead of being listed as revolving it says Overdraft/Reserve Checking Account -- but essentially it is a revolving account.  I can transfer funds from it to my checking whenever i wish.

 

then lastly i have my secured installment loan with a 0 balance.

 

basically, in all of this, i was just wondering if i had any extra benefit to my score by having the target "charge account" on there or not..


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