topic Re: Improve portfolio, Nordstrom and Macy in Credit Cards

Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 13:08:40 GMT

I had no retail cards and these are different from real credit cards. I went to Nordstrom and got 500 approved. Went to Macy and got 600 approved. I wish it was higher but it is something. Also, I maxed my Nordstrom. I should probably call tomorrow and ask when my due date is and closing date and when they report to the bureaus.

Anyway, that is it for me for 6months until you guys tell me to apply for a QS or Venture One. To the Garden to save my score. Should probably apply for a Gap since it is synchrony but I think they only offer visa. I want pure retail card that is only for instore use. Anyone know places I can go for synchrony that offer those?

I did this because I heard retail cards are different credit than real credit cards. Like Mortgages and auto loans. Adds more weight to the total score (different catagories)? am I wrong?

Re: Improve portfolio, Nordstrom and Macy

redpat — Sun, 28 Feb 2016 13:26:40 GMT

You are wrong. Store cards are treated the same as another CC.

Also, having many store cc add to your inquires and can cloud additional apporvals because they also add to open credit, depending what your income is of course.

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 13:28:41 GMT

@redpat wrote:
You are wrong. Store cards are treated the same as another CC.

Also, having many store cc add to your inquires and can cloud additional apporvals because they also add to open credit, depending what your income is of course.

I swear I read it on CCT, myFico, or Credit karma. :/

If that is the case. That is not what I wanted to do. One step forward, two steps back. Only, 3, 2, 3 inquires so far.

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 18:37:04 GMT

I believe OP is actually correct in opening retail lines. A store card goes into that "credit diversity" small percentage category of scoring. Even transunion reports these differently. You have your revolving pool, retail pool, and installment pool.

The inquiries is a temporary black eye, which honestly isnt even that big of a deal depending on your income.

I have the following store cards:

Macy's

Bloomingdales

Barneys

Blue Nile

Brooks Bros

Amazon

Lowes

Each one of them, except for Brooks Bros and Barneys has options for 0% financing on large ticket items which is absolutely great. A lot of people say "well you shouldn't buy something if you don't have the cash for it". Even if you do have the cash for it, 0% financing allows you to keep your large chunk of cash and pay the same amount over a set period of time. It all comes down to responsibility, but OP there's nothing wrong with what you did - just keep it that way

Re: Improve portfolio, Nordstrom and Macy

redpat — Sun, 28 Feb 2016 18:48:59 GMT

@Anonymous wrote:
I believe OP is actually correct in opening retail lines. A store card goes into that "credit diversity" small percentage category of scoring. Even transunion reports these differently. You have your revolving pool, retail pool, and installment pool.

The inquiries is a temporary black eye, which honestly isnt even that big of a deal depending on your income.

I have the following store cards:

Macy's
Bloomingdales
Barneys
Blue Nile
Brooks Bros
Amazon
Lowes

Each one of them, except for Brooks Bros and Barneys has options for 0% financing on large ticket items which is absolutely great. A lot of people say "well you shouldn't buy something if you don't have the cash for it". Even if you do have the cash for it, 0% financing allows you to keep your large chunk of cash and pay the same amount over a set period of time. It all comes down to responsibility, but OP there's nothing wrong with what you did - just keep it that way

Honestly loading up on store cards can effect your ability of getting approved for additional credit.

The best credit diversity is having CC, Auto loans and Mortgages. Too much of anything is never good, the 0% financing thing is a big trap, IMO.

I was at Macy's yesterday and was told if you open a Macy's you can save an additional 10%, no thanks, paid with Amex.

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 19:14:04 GMT

I think I'd rather be at zero store cards than have that many. Limited-use store cards with virtually no rewards short of 0%, vs. a Card that offers cash back on department stores, or unlimited cash back anywhere, that's a pretty easy decision. Since most people outside these boards don't make purchases on credit cards unless they have the cash, that works out well.

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 19:15:07 GMT

@redpat wrote:

Honestly loading up on store cards can effect your ability of getting approved for additional credit.
The best credit diversity is having CC, Auto loans and Mortgages. Too much of anything is never good, the 0% financing thing is a big trap, IMO.
I was at Macy's yesterday and was told if you open a Macy's you can save an additional 10%, no thanks, paid with Amex.

Why is 0% a big trap?

I've always taken advantage of 0% deals. You get x amount of months to pay off the charge with 0% interest. Its no different than a 0% offer on a credit card for x months, or 0% interest on a vehicle for x months. If you can't afford to pay it off in that many months, its not a "trap", its being irresponsible.

I think you're confusing personal preference with actual facts. If your portfolio is strong enough to get additional credit, then you will, if it isnt, you wont. Having healthy store cards and lines most likely will not affect you pursuit of new credit in the long term.

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 19:17:50 GMT

@Anonymous wrote:
@redpat wrote:

Honestly loading up on store cards can effect your ability of getting approved for additional credit.
The best credit diversity is having CC, Auto loans and Mortgages. Too much of anything is never good, the 0% financing thing is a big trap, IMO.
I was at Macy's yesterday and was told if you open a Macy's you can save an additional 10%, no thanks, paid with Amex.
Why is 0% a big trap?

I've always taken advantage of 0% deals. You get x amount of months to pay off the charge with 0% interest. Its no different than a 0% offer on a credit card for x months, or 0% interest on a vehicle for x months. If you can't afford to pay it off in that many months, its not a "trap", its being irresponsible.

I think you're confusing personal preference with actual facts. If your portfolio is strong enough to get additional credit, then you will, if it isnt, you wont. Having healthy store cards and lines most likely will not affect you pursuit of new credit in the long term.

But it will. A $10,000 store card can put you over the threshold for 'too much availble credit', when you'd rather have that on a full-use network card (even Discover and Amex have more acceptance than a limited use store card used at one location only). That's the banks talking. If you have that kind of money on a walmart you are limiting yourself as to what you can get in the future.

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 19:21:38 GMT

If that were the case then with about $75,000 in available credit on my store cards, then I wouldn't of just got approved for $12,000 for an amex EDP.

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 19:24:38 GMT

@Anonymous wrote:
If that were the case then with about $75,000 in available credit on my store cards, then I wouldn't of just got approved for $12,000 for an amex EDP.

Because you have the profile to support it, and you choose to waste $75,000 in availble credit where you could have gotten it on bank cards instead of limited-use, one option store cards. If I have that kind of ability to get those numbers in availble credit, I'm sure as hell not wasting it on Synchrony or Comenity.

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 19:29:47 GMT

@Anonymous wrote:
@Anonymous wrote:
If that were the case then with about $75,000 in available credit on my store cards, then I wouldn't of just got approved for $12,000 for an amex EDP.
Because you have the profile to support it, and you choose to waste $75,000 in availble credit where you could have gotten it on bank cards instead of limited-use, one option store cards. If I have that kind of ability to get those numbers in availble credit, I'm sure as hell not wasting it on Synchrony or Comenity.

Well remember, theres a reason why many people put "YMMV" after just about every comment

I don't think its a waste at all, based on how I manage money and 0% offers (except the Brooks Bros, that one is a waste but it was one of my first accounts ever). I also have every single revolver I need at the limit I need them, so is any of it really a waste? With my extra credit, I can carry a $10,000 balance and still be way less than 10% utilization. Thats why most people get these high store card limits, as a buffer to their utilization.

There's so many factors that go into approvals, CCs and scores, its really not wise or fair to pin point it to any matter-of-fact statements, like saying someone is wrong, or wasteful.

Re: Improve portfolio, Nordstrom and Macy

redpat — Sun, 28 Feb 2016 19:31:35 GMT

@Anonymous wrote:
If that were the case then with about $75,000 in available credit on my store cards, then I wouldn't of just got approved for $12,000 for an amex EDP.

Look, we don't know your credit profile. OP looks like they are building credit and they think that Store Cards is good because it gives his profile credit diversity which it really doesn't, IMO.

So what may have worked for you, might not for OP, depending on their profile and income.

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 19:34:52 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
If that were the case then with about $75,000 in available credit on my store cards, then I wouldn't of just got approved for $12,000 for an amex EDP.
Because you have the profile to support it, and you choose to waste $75,000 in availble credit where you could have gotten it on bank cards instead of limited-use, one option store cards. If I have that kind of ability to get those numbers in availble credit, I'm sure as hell not wasting it on Synchrony or Comenity.
Well remember, theres a reason why many people put "YMMV" after just about every comment

I don't think its a waste at all, based on how I manage money and 0% offers (except the Brooks Bros, that one is a waste but it was one of my first accounts ever). I also have every single revolver I need at the limit I need them, so is any of it really a waste? With my extra credit, I can carry a $10,000 balance and still be way less than 10% utilization. Thats why most people get these high store card limits, as a buffer to their utilization.

There's so many factors that go into approvals, CCs and scores, its really not wise or fair to pin point it to any matter-of-fact statements, like saying someone is wrong, or wasteful.

Or seemingly in your case, YMMV unless it's contradictory to you. I had (and have) store cards for rebuilding purposes, Walmart has already been canceled. Care Credit is next on the list. Amazon after that. After which I will be left with two bank cards that I will let grow. Since the low-end balances on the store cards will be gone, it will get that opportunity.

Utilization buffers are fine, until their strictly used as a util buffer, then canceled by the creditor for non-use. Whereas if I have 10,000 on a Chase Freedom, 15,000 on a CSP, 20,000 on a Discover and another 25,000 on an AMEX, does that not count as utilization buffers? Especially if I only have average of 3,000 in spending on those cards? Or does that math only work on your favorite store cards?

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 19:35:11 GMT

@redpat wrote:
@Anonymous wrote:
If that were the case then with about $75,000 in available credit on my store cards, then I wouldn't of just got approved for $12,000 for an amex EDP.
Look, we don't know your credit profile. OP looks like they are building credit and they think that Store Cards is good because it gives his profile credit diversity which it really doesn't, IMO.

So what may have worked for you, might not for OP, depending on their profile and income.

Well you did say IMO, so I can respect that. Its definitely one strategy to not rack up store cards. But many people started with fingerhut or victoria secret at the beginning because it gave them a CL and payment history.

I think he can go either way, and as long as he keeps a healthy payment history and no baddies on his account, his scores will go up and he will continue to get more and better offers.

Theres a million ways to build a strong portfolio!!

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 19:38:24 GMT

@Anonymous wrote:
Or seemingly in your case, YMMV unless it's contradictory to you. I had (and have) store cards for rebuilding purposes, Walmart has already been canceled. Care Credit is next on the list. Amazon after that. After which I will be left with two bank cards that I will let grow. Since the low-end balances on the store cards will be gone, it will get that opportunity.

Utilization buffers are fine, until their strictly used as a util buffer, then canceled by the creditor for non-use. Whereas if I have 10,000 on a Chase Freedom, 15,000 on a CSP, 20,000 on a Discover and another 25,000 on an AMEX, does that not count as utilization buffers? Especially if I only have average of 3,000 in spending on those cards? Or does that math only work on your favorite store cards?

Well it seems like you've misunderstood the intent of my posts. As I said in my above post, there's many ways to handle and grow a credit score. Yours works for you and I understand why it does. Mine works for me.

I just wanted OP to know that you can still build a healthy credit report and have store cards, heck it may even help if you are responsible. I apologize if my posts came off in a "im right and you're wrong manner", because that really wasnt my intent.

Re: Improve portfolio, Nordstrom and Macy

redpat — Sun, 28 Feb 2016 19:43:32 GMT

@Anonymous wrote:
@redpat wrote:
@Anonymous wrote:
If that were the case then with about $75,000 in available credit on my store cards, then I wouldn't of just got approved for $12,000 for an amex EDP.
Look, we don't know your credit profile. OP looks like they are building credit and they think that Store Cards is good because it gives his profile credit diversity which it really doesn't, IMO.

So what may have worked for you, might not for OP, depending on their profile and income.
Well you did say IMO, so I can respect that. Its definitely one strategy to not rack up store cards. But many people started with fingerhut or victoria secret at the beginning because it gave them a CL and payment history.

I think he can go either way, and as long as he keeps a healthy payment history and no baddies on his account, his scores will go up and he will continue to get more and better offers.

Theres a million ways to build a strong portfolio!!

Check that, it doesn't give you diversity, fact.

That was the OP's original question.

SCT is one of the worst ways to grow a credit profile.

Re: Improve portfolio, Nordstrom and Macy

Anonymous — Sun, 28 Feb 2016 19:45:57 GMT

Lol, ok, you win. Thanks for being such a friendly poster today.

Re: Improve portfolio, Nordstrom and Macy

redpat — Sun, 28 Feb 2016 19:52:46 GMT

@Anonymous wrote:
Lol, ok, you win. Thanks for being such a friendly poster today.

Lol, the war of attrition......It was fun, you had good comments.

Re: Improve portfolio, Nordstrom and Macy

Chris679 — Sun, 28 Feb 2016 20:12:47 GMT

Store cards are not going to improve your credit score compared to major credit cards. Applying for a bunch of cards in a short period of time is looked at as credit seeking behaviour by lenders and that is why you are getting $500 limits. I wish I had a nickel for every new poster that came in here, ignored everyone's advice to stop applying for cards and then was back 12 months later. Best case scenario they just say you all were right and now I want to close all these crap cards. Worst case scenario they have a dozen cards maxed out and the 0% apr is ending and they are looking for advice on how to pay them all off.

There are two reasons to open a store card IMO: 1-You shop at that store constantly and they offer great rewards. 2-You can save a ton on a major purchase by opening the card. Both of these reasons would also have to be weighed against the negative impact on your credit report. With a thick file you can afford the hit, with a thin file you can't.

If you are trying to build a solid credit report from scratch then there is only room for one store card to me and that's Walmart because they offer a free TU FICO and it can graduate to a real card. Otherwise you would be better off opening real cards or nothing at all.

The credit game is a marathon not a sprint. When you are getting denials or $500 limits that is the game telling you that you are moving too fast.