topic Re: question about store credit cards in Credit Cards

question about store credit cards

Anonymous — Wed, 04 Feb 2009 05:58:27 GMT

Why are store credit cards good for your report? Normally, most retail cards only provide a very limited CL, and doesn't that hurt your AVERAGE credit limit? Let's say you have an AMEX with a CL of 15k and a store credit of $500. I know it is good for the "MIX" but please tell me more. I'm thinking about closing the VS card from 2006 that I recently re-opened a month ago..

Re: question about store credit cards

haulingthescoreup — Wed, 04 Feb 2009 06:05:45 GMT

I've yet to figure this out. The original posting on the Credit Education tab implied that most people would start with a store card, and then add a bank card, and that was when you got points for credit mix. So to me, that implied that retail cards were the bare bones, and that you got points for finally qualifying for bank cards.

But I've read enough posts to the contrary to give up on that theory. My best guess is that this is a left-over from back in the day when store cards were due each month, and you didn't carry balances on them. But that's pretty much a guess on my part. All I know is that I've seen enough anecdotal evidence to make me think that there must be something to it.

Re: question about store credit cards

Anonymous — Wed, 04 Feb 2009 06:06:45 GMT

it helps the mix, personally i only have one, a macys card(due to large GLI i my limit has been doubled every 3 months for the last year.

Re: question about store credit cards

Anonymous — Wed, 04 Feb 2009 10:32:10 GMT

I still am befoggled when I see the CL on the Ritz Camera staoe card I have from GEMB. It's $4500 and I've never known why. Heck, it's the best help I have in a trade line but I can never think of a good reason to use it.

It us also for the above mentioned reasons that I am just itching to trash my $200 Target card. The only reason I don't is becasue I have 5 cards and 2 I use regularly which keeps my accounts UTL under 50%. GRRRR

Re: question about store credit cards

oracles — Thu, 05 Feb 2009 05:23:34 GMT

@Anonymous wrote:
Why are store credit cards good for your report? Normally, most retail cards only provide a very limited CL, and doesn't that hurt your AVERAGE credit limit? Let's say you have an AMEX with a CL of 15k and a store credit of $500. I know it is good for the "MIX" but please tell me more. I'm thinking about closing the VS card from 2006 that I recently re-opened a month ago..

I will say there is no concrete written reason as to why, however like HTSU states, there is alot of evidence from many sources that state we should have it and it is helping our score. I will also say, do not close theVS card. It is helping with mix as well as history.

Last thing, you probably know this but just want to state, average credit limit does not matter in the fico scoring. Therefore even if you have a 15k cc and a 500 cc, it is the util% of the total limit and not the average of the limits that effect your score.

Hope i helped soewhat