topic Re: Why Store Card in mix for best FICO in Credit Cards

Why Store Card in mix for best FICO

Anonymous — Fri, 23 Jan 2009 00:40:45 GMT

Could someone please explain why a store card is beneficial to your score(as most have said). Being generally easier to get, I would think that they would represent a different(lesser) tier of credit, and be a drag on FICO scores. Or is it outdated, going back to when they had to be paid off every month so they would be a "charge card" not a revolving line and thus a separate type of credit, like an installment or mortgage? Just trying to understand the rationale for this. Just curious for an answer, Thanks.

Re: Why Store Card in mix for best FICO

smallfry — Fri, 23 Jan 2009 00:44:18 GMT

Rationale and FICO in the same sentence? You're kidding right? So I am a greater credit risk because I pay a 30 year mortgage off in 5 years? I could go on but why bother?

Re: Why Store Card in mix for best FICO

Creditaddict — Fri, 23 Jan 2009 00:44:25 GMT

a good mix accounts for 10%

for what ever reason, adding 1 store card or gas card boosts your score just a little bit if you didn't have that mix before.

Re: Why Store Card in mix for best FICO

haulingthescoreup — Fri, 23 Jan 2009 01:08:15 GMT

I think that it's just about the dumbest thing I've ever seen. In fact, when I read an earlier version of this on the Education tab (since updated), it very much implied that if you're a credit newbie, and you have nothing but retail cards, it would help you to add a bank card (Visa, MC, etc.) The text has been changed since then.

But the propeller-beanie folks at Fair/Isaac live and die by statistical analysis, and if they've found that people who have both bank cards and pure retail cards are more responsible in their credit behavior, then that's the way it is. I've seen enough posts from people who had score increases after adding a store card that I've decided to accept it, weird as it might be.

definition of "pure" retail card = doesn't have Visa/MC/AmEx/Discover logo on it anywhere. It can only be used it that particular store or chain of stores, or at that gas station or partner gas stations, I think. I'm guessing on the last one; I can't keep track of who owns whom these days.

Re: Why Store Card in mix for best FICO

Anonymous — Fri, 23 Jan 2009 02:00:46 GMT

Forgive my ignorance as the statement "without a Visa/MC..." would make my question a rather dumb one but just for the pure joy and punishment of affirmation, do cards like CareCredit, LensCrafters, OldNavy which are handled by GE Money, do they count as "store" or "pure" credit cards? eh? right?

Re: Why Store Card in mix for best FICO

Anonymous — Fri, 23 Jan 2009 02:14:31 GMT

Guardian wrote:
Forgive my ignorance as the statement "without a Visa/MC..." would make my question a rather dumb one but just for the pure joy and punishment of affirmation, do cards like CareCredit, LensCrafters, OldNavy which are handled by GE Money, do they count as "store" or "pure" credit cards? eh? right?

Those are store cards. Tho with Old Navy you have to be careful -- sometimes that card grows up and becomes a Visa (tho I think they give you the option to say no).

Re: Why Store Card in mix for best FICO

Anonymous — Fri, 23 Jan 2009 02:38:42 GMT

Thank you. I assumed that but never hurts to be sure. They offered the Old Navy visa, I said no, I liked it this way to kill two birds one stone.

Re: Why Store Card in mix for best FICO

Anonymous — Fri, 23 Jan 2009 02:40:32 GMT

@Creditaddict wrote:
a good mix accounts for 10%

for what ever reason, adding 1 store card or gas card boosts your score just a little bit if you didn't have that mix before.

Are you sure? When I opened up my 1st store card, I lost 35points lol.

Re: Why Store Card in mix for best FICO

Creditaddict — Fri, 23 Jan 2009 02:41:39 GMT

@Anonymous wrote:
@Creditaddict wrote:
a good mix accounts for 10%

for what ever reason, adding 1 store card or gas card boosts your score just a little bit if you didn't have that mix before.
Are you sure? When I opened up my 1st store card, I lost 35points lol.
sigh, maybe not then! lol

Re: Why Store Card in mix for best FICO

oracles — Fri, 23 Jan 2009 02:56:13 GMT

Just make sure you get a store card that you shop at. Nothing is worse than to get a store card from a store you rarely shop and then every 3-6 months, you have to agonize over what to buy because you really don't want anything. Its a huge headache. I use to shop at Jcrew years ago, and now i just think they are overly expensive. It is so hard to find something there that is easy to swallow in getting. I hate it but what can you do. Time to buy some $20 boxers.

Re: Why Store Card in mix for best FICO

Anonymous — Fri, 23 Jan 2009 03:05:45 GMT

@Anonymous wrote:
@Creditaddict wrote:
a good mix accounts for 10%

for what ever reason, adding 1 store card or gas card boosts your score just a little bit if you didn't have that mix before.
Are you sure? When I opened up my 1st store card, I lost 35points lol.

There might have been an issue of new age of accounts, revolving debt, so on and so forth, it shoudl have recovered quickly though, did it not?

Re: Why Store Card in mix for best FICO

Anonymous — Fri, 23 Jan 2009 04:05:53 GMT

@Anonymous wrote:
@Anonymous wrote:
@Creditaddict wrote:
a good mix accounts for 10%

for what ever reason, adding 1 store card or gas card boosts your score just a little bit if you didn't have that mix before.
Are you sure? When I opened up my 1st store card, I lost 35points lol.
There might have been an issue of new age of accounts, revolving debt, so on and so forth, it shoudl have recovered quickly though, did it not?

Age of accounts.. possibly. My avg age of credit history is a year while my longest is 2 yrs on my student CC. As for revolving debt..barely 3% that time. Did it recover quickly? Yes because I just paid off a personal loan which gave me 24 points. But if I didint pay off the personal loan..hmm not sure if it would have recovered quickly.

Re: Why Store Card in mix for best FICO

score_building — Fri, 23 Jan 2009 04:17:00 GMT

that could be though paying off an installment loan would not typically be a point gusher, a bucket shift is another possibility, ymmv, in any case, nice 20 plus point gain!

@Anonymous wrote:

Age of accounts.. possibly. My avg age of credit history is a year while my longest is 2 yrs on my student CC. As for revolving debt..barely 3% that time. Did it recover quickly? Yes because I just paid off a personal loan which gave me 24 points. But if I didint pay off the personal loan..hmm not sure if it would have recovered quickly.