topic Re: Why are people so against store cards in Credit Cards

Why are people so against store cards

jamesdwi — Tue, 07 Jul 2015 00:50:33 GMT

I wonder what would people do for another TL that is 5 years and 6 months old and open in perfect standing? Second oldest TL. Has grown from a $600 CL to a 3400 CL, in 18 months more it will be 7 years old. All the time adding to my AAoA, in 4 years my AAoA will be 7+ years, why? because I kept open all my SCT and early store cards, so it doesn't matter If I apply for a new card or two every 6 months, my AAoA drops a month and then starts growing the following month. If I would of closed it, it would of fallen off my report just as my AAoA would be hitting 7 years taking a hit. What has it cost me, I basicly spend $30 or $40 a year on the card to keep it in good standing. On manual review it never comes up, its just one of 31 open TL's that show perfect payment history with a High Balance of $230 or so which is about 10% UTL even used it the most, no one cares, accept my AAoA and the thickness of my report. Awesome SL's happen, CLI's happen frequently.

Yet despite all this I see people closing store cards all the time. Sure it may be seem like a lot when and un-needed as you have moved on to prime cards, but in several years these store cards will fall off and you will eventually add more cards and your 3 prime cards have an AAoA of 7 years but add 2 more cards and it drops from 7years to 4 years nearly in half. Seems painful for me. When you could just let some store cards hang around to help your AAoA long term.

Re: Why are people so against store cards

Anonymous — Tue, 07 Jul 2015 00:54:02 GMT

i don't think people are against store card, as much as people opening store card for utility padding, or just applying for massive amounts of store cards and lower AAoA, then regret later and close all of them.

if it's a store card from a place you shop often, by all means go ahead and apply for it. I do think about applying for Torrid store card because all my clothes shoppings are from there, but I think their loyalty card gives similar benefits as store card, so kinda makes it pointless.

Re: Why are people so against store cards

Skye12329 — Tue, 07 Jul 2015 00:55:09 GMT

I think the biggest thing is will this card benefit me? What am I getting out of it for the HP? Is the deal worth the pull? Etc. Otherwise no real big issues.

Re: Why are people so against store cards

SunriseEarth — Tue, 07 Jul 2015 01:01:32 GMT

Everyone has a different approach to credit. Some people avoid store cards like the plague. Others (myself included) have seen them as a valuable tool for building/rebuilding credit.

Credit needs to be useful to you. Store cards that offer discounts, strong rewards, or special financing offers are especially useful. Others like them as a UTIL buffer. Certainly, if they contribute to your AAoA and you'd like the TL to do so indefinitely, that's also a good thing.

Re: Why are people so against store cards

baller4life — Tue, 07 Jul 2015 01:16:05 GMT

I don't have anything against store cards. I will keep Wal-Mart,Amazon and Lowe's for the long haul. I just hate to see people load up on SCT cards that they will never use just because it was exciting to see the approvals. Then subsequently get trapped in "toy limit hell".

Re: Why are people so against store cards

Sharingan — Tue, 07 Jul 2015 01:17:40 GMT

The only issues I have with store cards are if they are proprietary/in-house use only, give small limits, and have high APRs. I've eliminated cards that have the first two issues, however, the last is unavoidable. The only store cards I have left have sky high limits, offer perks/deferred interest, and warrant usage over my bank cards at their respective stores. My Sam's Club MC competes extremely well with bank cards as well.

Lastly, I've reached a point where I can't justify an EX or EQ inquiry for a store card to save 10% off my purchase. Those inquiries can be worth $300+ in sign up bonuses each from bank rewards cards.

Re: Why are people so against store cards

Anonymous — Tue, 07 Jul 2015 01:35:22 GMT

I made a thread sort of on this. I was rebuilding and needed the padding and payment history when I got my first secured credit cards. My aaoa took a hit at the time but I was thinking long term, I now have 12 maybe 13 CC after recon and going forward a new card in the next 6 months wouldn't take such a blow. The sct was very handy, free credit with no hp and now I'm getting cli on them and approved today for a $5k signature visa and $1600 discover. Loving the store cards

Re: Why are people so against store cards

Anonymous — Tue, 07 Jul 2015 01:46:57 GMT

Most store cards are ugly.

Re: Why are people so against store cards

Anonymous — Tue, 07 Jul 2015 01:51:03 GMT

Lol except the VS Angel lol

Re: Why are people so against store cards

Anonymous — Tue, 07 Jul 2015 01:53:16 GMT

Store cards don't give $500 bonuses.

Re: Why are people so against store cards

Anonymous — Tue, 07 Jul 2015 01:55:07 GMT

@Anonymous wrote:
Lol except the VS Angel lol

I don't know about the card, but it's sure fun trying to get the popup.

Re: Why are people so against store cards

Anonymous — Tue, 07 Jul 2015 02:02:45 GMT

3 store cards I regret getting before I even got them in the mail...TJ Maxx $450sl Target $500sl and ToyrUs $300sl all HPs and with crappy SL. I wish I had those HPs points back from theses card I'd probably be in a lot better position for some real good prime cards. Nothing against store cards but for me whenever I get get that $20k sl card I won't need no more store cards.

Re: Why are people so against store cards

Kostya1992 — Tue, 07 Jul 2015 02:06:25 GMT

There is no "people against store cards," there isn't a group of haters who want store cards to cease to exist. Everyone has a specific situation. I am personally against getting one for myself because I can get much better prime reward cards from banks that are better all around. Everyone has a different profile and different likes and dislikes.

Re: Why are people so against store cards

CreditCuriosity — Tue, 07 Jul 2015 02:06:33 GMT

@Anonymous wrote:
Most store cards are ugly.

My only store Card JCREW is a Black Card.. Nice and clean lol and classy looking lol

Re: Why are people so against store cards

happypill — Tue, 07 Jul 2015 02:07:17 GMT

I think store cards are fine as long as its for a store you shop at normally. Some people have store cards where they have to come up with something to buy because they haven't used it in a year - that's pretty much wasted spend and probably isn't smart, especially if it's a store where the cheapest thing you can buy is $20 or $50 or $500.

Otherwise, I think store cards are good for utilization padding as well as AAoA buffering. Some store cards are useful for other reasons as well. I keep an Amazon card because I get 5% back on all purchases with a higher limit that through Sallie Mae card. I keep a J Crew card because they are known to give big CLI. I'd consider getting a Walmart Card (free FICO) and Lowes (big limits).

Re: Why are people so against store cards

Existentialist — Tue, 07 Jul 2015 02:13:54 GMT

With developed credit, AAoA is much less of a factor. In fact AAoA is most relevant when 'establishing' credit. And depending on lender, even then, AAoA can be less of a factor when weighed against other criteria (in terms of approval). With established credit comes the freedom to reduce cards deemed as insufficient to ongoing financial need. Remember your goals over time will change & evolve. As such it is expected that your need/desire for products that may hav been considered necessary or relevant early on hav since become obsolete. And in general, store cards will most often be those with the lowest limits in your portfolio.

Re: Why are people so against store cards

Anonymous — Tue, 07 Jul 2015 03:03:21 GMT

@Anonymous wrote:
3 store cards I regret getting before I even got them in the mail...TJ Maxx $450sl Target $500sl and ToyrUs $300sl all HPs and with crappy SL. I wish I had those HPs points back from theses card I'd probably be in a lot better position for some real good prime cards. Nothing against store cards but for me whenever I get get that $20k sl card I won't need no more store cards.

Id like to add VS $250sl-really how much underwear can you really buy long term. i could have just used my barclay rewards. justice $250sl-no rewards at all. gap-$450sl-i dont need that much clothing from gap (im a big nordstrom and target shoppoer). kay jewler $650sl-but you have to pay 20% down (useless insulting line of credit). I wish I hadnt apped, taken hp's and then ended up closing them for above stated reasons. My thousands of dollars available credit on major cards is enough. Store cards just complicated things for me truthfully.

Re: Why are people so against store cards

NichelleN — Tue, 07 Jul 2015 03:14:48 GMT

@Anonymous wrote:

@Anonymous wrote:
3 store cards I regret getting before I even got them in the mail...TJ Maxx $450sl Target $500sl and ToyrUs $300sl all HPs and with crappy SL. I wish I had those HPs points back from theses card I'd probably be in a lot better position for some real good prime cards. Nothing against store cards but for me whenever I get get that $20k sl card I won't need no more store cards.
Id like to add VS $250sl-really how much underwear can you really buy long term. i could have just used my barclay rewards. justice $250sl-no rewards at all. gap-$450sl-i dont need that much clothing from gap (im a big nordstrom and target shoppoer). kay jewler $650sl-but you have to pay 20% down (useless insulting line of credit). I wish I hadnt apped, taken hp's and then ended up closing them for above stated reasons. My thousands of dollars available credit on major cards is enough. Store cards just complicated things for me truthfully.

FYI - Both Kay and Jared required 20% down for the very first purchase. After that, nothing was required and my credit lines have doubled every 10 months. I might consider closing them but I usually buy a watch or some other form of jewelry and end up using the cards.

Anyway.....

For me, it depends on the cards. I absolutely LOVE my Kohl's and Macy's cards. I shop at these stores regularly and the cards offer additional, significant discounts. I'm able to stack offers. Yesterday, I was able to use a 20% off targeted promo, $10 off targeted promo and some 'Kohl's cash' from a previous purchase. I'm a fan and will keep Kohl's and Macy's as long as my shopping patterns stay the same. For Amazon, the 5% back is great.

I have my reasons, but I really like the store cards I have.

Re: Why are people so against store cards

creditnocash — Tue, 07 Jul 2015 03:30:55 GMT

@happypill wrote:
I think store cards are fine as long as its for a store you shop at normally. Some people have store cards where they have to come up with something to buy because they haven't used it in a year - that's pretty much wasted spend and probably isn't smart, especially if it's a store where the cheapest thing you can buy is $20 or $50 or $500.

Otherwise, I think store cards are good for utilization padding as well as AAoA buffering. Some store cards are useful for other reasons as well. I keep an Amazon card because I get 5% back on all purchases with a higher limit that through Sallie Mae card. I keep a J Crew card because they are known to give big CLI. I'd consider getting a Walmart Card (free FICO) and Lowes (big limits).

that so much. ive had store cards longer than i have had my regular/prime cards, yet i still shop at the stores i have cards at except khols but theres no af and its sd tbh.

best buy-3500

macy's-3500

walmart -5000k

american eagle-2500

kohls-400

i use all of these, but carry balances on none of them except for bb because i have 0% finance for 18 months so i pay min and then pay off in full before that expiration date.

Re: Why are people so against store cards

kdm31091 — Tue, 07 Jul 2015 03:35:05 GMT

I'm not against them per se, I just think there's nowhere I really, truly shop enough to benefit from it. Unless you spend a ton of money somewhere religiously, it is not worth having the card IMO. You can often get the same discounts without a credit card. For example, I do like Kohls and thought about their CC before, but the free Yes to You or whatever rewards program emails me coupons nearly every single day....so why would I need the card?

If you're a devout shopper somewhere and the card offers benefits you cannot otherwise get, sure, go for it. But don't over rely on them. You do not need a new store card for every major purchase like some people on here seem to think.

The other problem is they almost never grow the same way a "regular" card does. I get that you wouldn't want/need a 5k Kohls card anyway but I'm not cluttering my wallet with a 300 limit card when I have cards in the double digits that I can use. YMMV.