topic Re: I need a store card... in Credit Cards

I need a store card...

aquatic1 — Sat, 05 Sep 2009 04:47:10 GMT

I am not having any luck on getting a store card. I was even denied a Macy's card. I have 5 CO's and have paid all CA's associated with them (they were all sold to CA's).

I have a Hooters card only and my car payments which will be paid off next month. Also my SL goes out of deferment next month as well. As you can see by my scores, they are not the best. I have either 2 or 3 CA's that I am trying to get deleted (2 are paid and the other is waiting a response from AFNI).

Any suggestions would be appreciated.

Re: I need a store card...

Anonymous — Sat, 05 Sep 2009 13:50:04 GMT

Don't worry about the store card. Go to HSBC's website, and open a Orchard Standard card for now. You will not have to secure it, and that will get you started. Keep the Orchard Card below $90 at all times. --Maybe just use it for gas. Next...Keep disputing the paid collections, until they give up, and remove them. Also do not reply to the collection letters, or phone calls. If you make good money, this is a great time, to consider getting a replacement car, just don't buy to much or a car! Time is your humbling repair tactic... I hope this helps get you started.

-RED, Disputing accurate items violates our Credit Repair Discussion Guidelines, Terms of Service, and User Guidelines that prohibit the promotion of certain types of credit repair.When a collection is paid without a PFD, it will still remain on your credit report as a paid collection. They don't automatically delete.

Message Edited by llecs on 09-05-2009 09:50 AM

Re: I need a store card...

Anonymous — Sat, 05 Sep 2009 13:01:45 GMT

@Anonymous wrote:
Don't worry about the store card. Go to HSBC's website, and open a Orchard Standard card for now. You will not have to secure it, and that will get you started. Keep the Orchard Card below $90 at all times. --Maybe just use it for gas. Next...Keep disputing the paid collections, until they give up, and remove them. Also do not reply to the collection letters, or phone calls. If you make good money, this is a great time, to consider getting a replacement car, just don't buy to much or a car! Time is your humbling repair tactic... I hope this helps get you started.

FYI: OP has indicated these were legitimate CA's and accounts which they paid. Advice to dispute accurate items is not allowed on the forum.

Proper methods of DV, PFD and GW are.

Re: I need a store card...

aquatic1 — Sat, 05 Sep 2009 15:35:23 GMT

Thank you all for the comments. I have been on the sight for long enough to know NOT to dispute accurate information. I have already started the hipaa process and the CA with AFNI its okay with me if they do not accept my PFD. I live in NYS and this account is over 5 years old and a cell phone bill. Once I pay them it should be deleted based on the 5 year rule for collections. I hope to pay them by the end of the month once I hear back from them. I really want any suggestions on store cards. I should have my OASIS card through AmEX by the end of next month so the store card would help with my mix.

Message Edited by aquatic1 on 09-05-2009 08:35 AM

Re: I need a store card...

Anonymous — Mon, 07 Sep 2009 11:59:21 GMT

Congrats on your Hooters and OASIS AmEx card.

Mix refers to a mix of cc and installment loans. You really do not need a store card. You may (or may not) see a score change with your AmEx - that'll be fun to watch. And then you may (or may not) see a score change with a third cc - but it will not matter if it is a store card or not. You do need one bank card - you've got the AmEx, so you're good. Check out your current AAofA and calculate what it will be if you app for a third card - that will have a definite impact on your scores.

Nice work getting the OASIS!

Re: I need a store card...

Jazzzy — Mon, 07 Sep 2009 13:44:50 GMT

@Anonymous wrote:
Congrats on your Hooters and OASIS AmEx card.

Mix refers to a mix of cc and installment loans. You really do not need a store card. You may (or may not) see a score change with your AmEx - that'll be fun to watch. And then you may (or may not) see a score change with a third cc - but it will not matter if it is a store card or not. You do need one bank card - you've got the AmEx, so you're good. Check out your current AAofA and calculate what it will be if you app for a third card - that will have a definite impact on your scores.

Thank you. The "having a mix" of credit thing is often misinterpreted.

I could believe this "store card" myth if just for once someone posted some evidence that they were ever dinged for not having a store card.

Don't get me wrong...there can be value in having a store card...sometimes great starter/rebuilding cards...often great no-interest deals....etc. One of my oldest cards is a Sears that was opened in 1989. I just don't like when people are told that they "need" a store card. They often end up with a hard inquiry for a card with a very low balance. Just not necessary unless you're getting a good deal.

Re: I need a store card...

Anonymous — Mon, 07 Sep 2009 15:08:45 GMT

@LynetteM wrote:
@Anonymous wrote:
Congrats on your Hooters and OASIS AmEx card.

Mix refers to a mix of cc and installment loans. You really do not need a store card. You may (or may not) see a score change with your AmEx - that'll be fun to watch. And then you may (or may not) see a score change with a third cc - but it will not matter if it is a store card or not. You do need one bank card - you've got the AmEx, so you're good. Check out your current AAofA and calculate what it will be if you app for a third card - that will have a definite impact on your scores.

Thank you. The "having a mix" of credit thing is often misinterpreted.

I could believe this "store card" myth if just for once someone posted some evidence that they were ever dinged for not having a store card.

Don't get me wrong...there can be value in having a store card...sometimes great starter/rebuilding cards...often great no-interest deals....etc. One of my oldest cards is a Sears that was opened in 1989. I just don't like when people are told that they "need" a store card. They often end up with a hard inquiry for a card with a very low balance. Just not necessary unless you're getting a good deal.

I have not read any concrete evidence that a single store card is any better than a regular VISA or MC for FICO scoring. It seems there are members convinced a store card is a requirement for TL "mix" for maximum FICO scoring. IMO, the word "myth" appropriately describes the belief that one store or gas card is needed for FICO mix.

If a member can prove this "myth" to be, in fact, true I am open to hear this proof.

Re: I need a store card...

pattycake — Mon, 07 Sep 2009 16:50:23 GMT

I think a store card can be useful for someone rebuilding/building credit, since most have no AF. I'm going to have my soon to be 18 year old son apply for a store card at Dillard's, just to show he can be responsible on his own. He's been an AU on my cards for several years, but he needs to learn good credit habits on his own.

Then, when he is ready, he can app for a VISA with UFCU.

Re: I need a store card...

Anonymous — Mon, 07 Sep 2009 17:00:11 GMT

@pattycake wrote:
I think a store card can be useful for someone rebuilding/building credit, since most have no AF. I'm going to have my soon to be 18 year old son apply for a store card at Dillard's, just to show he can be responsible on his own. He's been an AU on my cards for several years, but he needs to learn good credit habits on his own.

Then, when he is ready, he can app for a VISA with UFCU.

No question a store or gas card will help in this instance. They seem to be easier to qualify for. Nevertheless, my belief that a regular VISA or MC, if one can qualify, will accomplish the same goal and may actually be better, for FICO scoring purposes, if the CC is a major bankcard.

Message Edited by plasticman on 09-07-2009 10:00 AM

Re: I need a store card...

pattycake — Mon, 07 Sep 2009 17:02:02 GMT

@Anonymous wrote:
@pattycake wrote:
I think a store card can be useful for someone rebuilding/building credit, since most have no AF. I'm going to have my soon to be 18 year old son apply for a store card at Dillard's, just to show he can be responsible on his own. He's been an AU on my cards for several years, but he needs to learn good credit habits on his own.

Then, when he is ready, he can app for a VISA with UFCU.
+1

No question a store or gas card will help in this instance. They seem to be easier to qualify for. Nevertheless, my belief that a regular VISA or MC, if one can qualify, will accomplish the same goal and may actually be better, for FICO scoring purposes, if the CC is a major bankcard.
Message Edited by plasticman on 09-07-2009 10:00 AM

I agree with you, but there's always that pesky AF when you are in the subprime category. I remember those, and not fondly!

Re: I need a store card...

Anonymous — Mon, 07 Sep 2009 17:06:32 GMT

@pattycake wrote:
@Anonymous wrote:
@pattycake wrote:
I think a store card can be useful for someone rebuilding/building credit, since most have no AF. I'm going to have my soon to be 18 year old son apply for a store card at Dillard's, just to show he can be responsible on his own. He's been an AU on my cards for several years, but he needs to learn good credit habits on his own.

Then, when he is ready, he can app for a VISA with UFCU.
+1

No question a store or gas card will help in this instance. They seem to be easier to qualify for. Nevertheless, my belief that a regular VISA or MC, if one can qualify, will accomplish the same goal and may actually be better, for FICO scoring purposes, if the CC is a major bankcard.
Message Edited by plasticman on 09-07-2009 10:00 AM

I agree with you, but there's always that pesky AF when you are in the subprime category. I remember those, and not fondly!

LOL...The CCCs may be revisiting the AF on many cards in the near future even the prime ones!

Re: I need a store card...

Anonymous — Mon, 07 Sep 2009 17:43:32 GMT

Yeah, i never heard that either. I doubt it makes anything better or worse as far as FICO scoring.

I just want store cards for the perks, thats it. Thats why i dont apply for what i dont use

Except Penny's, i dont use it and dont shop there. Figured since i dont shop there, no more cards from places i wont utilize my credit line.

Re: I need a store card...

Anonymous — Mon, 07 Sep 2009 18:19:57 GMT

I too believe that there is little value in a store card, as part of mix. I personally believe that the benefits some have seen (score increase) after obtaining a store card would have been the same if they had gotten a major bank card in lieu at that time.

But, store cards can play a good builder stepping stone, especially if you have one you actually shop and can get the various benefits, discounts, offers, coupons.

Another benefit of store cards are the major purchase NO INTEREST offers that can come with them. I ended up getting Rooms to Go and CareCredit because both offered NO INTEREST on purchases that I planned or needed to make anyway. Room to Go was no interest till 2013 and CareCredit 18 and 24 months. This represented a substantial amount of money in purchase that can continue to collect interest for me while I make the payments over time.

One other possible small benefit of some store cards is the "prime" or national issuer potential. CU's and small banks tend to not get the full benefit as say a prime or national CCC. It has been argued that certain store cards, such as Macy's, Sears and others get this "NATIONAL" account benefit that a CU card would not. So if the major card being obtained is CU vs. a National store card......MAYBE there could be a hair splitting difference if the person needed MORE credit TL's to obtain optimum benefits of number of TL's, mix, etc. But I still don't believe this to be enough difference to warrant any real concern or special action.

Re: I need a store card...

Anonymous — Mon, 07 Sep 2009 22:04:55 GMT

@Anonymous wrote:
One other possible small benefit of some store cards is the "prime" or national issuer potential. CU's and small banks tend to not get the full benefit as say a prime or national CCC. It has been argued that certain store cards, such as Macy's, Sears and others get this "NATIONAL" account benefit that a CU card would not. So if the major card being obtained is CU vs. a National store card......MAYBE there could be a hair splitting difference if the person needed MORE credit TL's to obtain optimum benefits of number of TL's, mix, etc. But I still don't believe this to be enough difference to warrant any real concern or special action.

The FICO hit is "Too few bank revolving accounts"

CU accounts don't meet these criteria, neither do national merchant cards i.e. Macy's or Sears.

To avoid losing points here, you must have one bank (or national credit card meaning CapOne, AmEx, Discover - not co-branded but direct from those companies [these guys are actually national banks] to you).

That's one of the reasons HSBC (or other various favorites) is a good rebuilder card - it's score-building to have at least one "bank" card. For FICO scoring purposes, there is no benefit to a store or merchant card per se.

Re: I need a store card...

Anonymous — Mon, 07 Sep 2009 22:47:01 GMT

@Anonymous wrote:
@Anonymous wrote:
One other possible small benefit of some store cards is the "prime" or national issuer potential. CU's and small banks tend to not get the full benefit as say a prime or national CCC. It has been argued that certain store cards, such as Macy's, Sears and others get this "NATIONAL" account benefit that a CU card would not. So if the major card being obtained is CU vs. a National store card......MAYBE there could be a hair splitting difference if the person needed MORE credit TL's to obtain optimum benefits of number of TL's, mix, etc. But I still don't believe this to be enough difference to warrant any real concern or special action.
The FICO hit is "Too few bank revolving accounts"
CU accounts don't meet these criteria, neither do national merchant cards i.e. Macy's or Sears.
To avoid losing points here, you must have one bank (or national credit card meaning CapOne, AmEx, Discover - not co-branded but direct from those companies [these guys are actually national banks] to you).

That's one of the reasons HSBC (or other various favorites) is a good rebuilder card - it's score-building to have at least one "bank" card. For FICO scoring purposes, there is no benefit to a store or merchant card per se.

An HSBC Discover, a BofA Amex and a Citi Amex are all co-branded cards that count as major bank cards.

Re: I need a store card...

Anonymous — Mon, 07 Sep 2009 23:10:10 GMT

My report specifically stated that my score was not high enough because no major CC's. Those are the ones that matter

But a store can get you to the cards such as the majors

Re: I need a store card...

Scamp — Mon, 07 Sep 2009 23:42:46 GMT

An informative previous thread in which the store/retail/gas card scoring benefit (or lack thereof) was discussed at length:

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=162058&view=by_date_ascending&page=1

The general consensus among our scoring guru mods seems to be that, while there may not be a 'ding' (nor a ding message that shows up on one's report) for not having at least one such card in one's credit profile, there does appear to be a score benefit from adding one of these cards to one's profile, as many who've obtained their first of such cards have reported a bigger-than-expected score increase as a result.

Re: I need a store card...

Anonymous — Tue, 08 Sep 2009 03:45:40 GMT

@Anonymous wrote:
An HSBC Discover, a BofA Amex and a Citi Amex are all co-branded cards that count as major bank cards.

That's right. That's because HSBC, BofA and Citi are all major banks. A co-branded Macy's Visa (or a Wal-Mart Discover) does not qualify as a major bank card.

Re: I need a store card...

Anonymous — Tue, 08 Sep 2009 04:01:03 GMT

@Anonymous wrote:
@Anonymous wrote:
An HSBC Discover, a BofA Amex and a Citi Amex are all co-branded cards that count as major bank cards.
That's right. That's because HSBC, BofA and Citi are all major banks. A co-branded Macy's Visa (or a Wal-Mart Discover) does not qualify as a major bank card.

You seem awfully sure. You cite Sears in your original post. Sears MC is issued Citi and Sears Solution MC is issued by HSBC - still ruling them out?

Re: I need a store card...

Anonymous — Tue, 08 Sep 2009 05:00:47 GMT

You cite Sears in your original post.

I haven't cited Sears. Sears MC and Sears Solution MC are in the same category as Macy's Visa and the others. They're not going to count as a major bank card. Even though they may be perfectly lovely in every way.