topic Re: Store Card in Credit Cards

Store Card

kal9988 — Fri, 30 Jul 2010 18:17:30 GMT

I have a Macys card, which I use maybe twice a year. I always pay it off, so it pretty much has a $0 balance. Since I only use it every 6 months, I get a score bump when I use it. What's the best way for me to utilize this card to improve my credit? I can't always keep a balance on it as I don't shop there often enough.

Re: Store Card

laz98 — Fri, 30 Jul 2010 18:52:49 GMT

you don't have to carry a balance, just buy something maybe every 3 months instead of every 6 months.

Re: Store Card

kal9988 — Fri, 30 Jul 2010 18:58:18 GMT

haha ok

Re: Store Card

Anonymous — Fri, 30 Jul 2010 19:27:18 GMT

Alternately, apply for a store card where you do shop regularly.

Re: Store Card

haulingthescoreup — Sat, 31 Jul 2010 01:08:45 GMT

Two different ways of looking at store cards:

Do they do something special for your credit mix? --probably not, although the argument will go on forever.
Do they do something special for your wallet? --if it's a store where you regularly shop, CC or no, and you get good discounts, heads up on sales, etc etc, then maybe, sure. That's something that only you can decide.

In terms of scoring, most store cards have relatively low CL's, so if you let balances report, that can bite you on the patootie. Some store cards tend to have higher CL's. Think expensive stores with expensive toys: Home Depot, Best Buy, Guitar Center, etc. You might get a CL that's comparable to bank cards from a store like these.

But store cards typically have obscene APR's. (Exception: when using the card for over a certain amount gets you 0% for X number of months.)

I think that basically you shouldn't bother with a store card, unless it's going to benefit you as a shopper. As always, though, YMMV.

Re: Store Card

kal9988 — Wed, 13 Oct 2010 00:02:58 GMT

Should I close it? Or will that negatively affect my credit?

Re: Store Card

haulingthescoreup — Wed, 13 Oct 2010 00:07:42 GMT

I was just trying to say that adding a store card probably won't do any magic to your scores. But since you already have one, why would you want to close it?

Just use it maybe every 4-6 months to keep it open, only for something that you can pay off right away. You don't want to carry a balance on it.

Alternatively, if you actually do shop at Macy's, use it every time you go to generate the $10 coupon thingies.

If you want to understand the effects of closing, read fused's Closing Credit Cards.

Re: Store Card

Anonymous — Wed, 13 Oct 2010 00:53:10 GMT

Patootie bwahaha

Re: Store Card

haulingthescoreup — Wed, 13 Oct 2010 02:09:15 GMT

@Anonymous wrote:
Patootie bwahaha

Well, this is a family site, with people from all backgrounds, although some folks don't seem to realize this, and I'm trying to post less-offensive language.

Re: Store Card

Anonymous — Wed, 13 Oct 2010 02:20:54 GMT

@haulingthescoreup wrote:
....patootie....

Patootie© is certainly a new word in my dictionary. HTSU, you have certainly proved useful in normalizing my R-rated vocabulary

Re: Store Card

Anonymous — Wed, 13 Oct 2010 03:44:26 GMT

Re: Store Card

haulingthescoreup — Wed, 13 Oct 2010 04:20:52 GMT

All I can say is, y'all are really, really young!

You've probably never heard of a cuss box, either. (It's fining family members for using swear words. The proceeds go in the collection plate on Sunday morning, or possibly for a family outing, depending on the motivation behind the existence of the cuss box.)

eta: kall9988 (OP), I hope we haven't lost you due to this not-unprecedented thread-jacking. Anyway, let us know if you have any questions. I don't see any reason to close your Macy's card just from what you've posted, although I realize that there are plenty of other reasons to want to run a card through the shredder. Again, be sure to read the link by fused on what's involved with closing CC's.

Re: Store Card

Anonymous — Wed, 13 Oct 2010 06:00:35 GMT

Yes agreed we need to keep it PG. it was just funny seeing "patootie" stuck in there while reading your post. Your advice as usual was spot on.