topic Re: Credit Card and Store Card Utility in Credit Cards

Credit Card and Store Card Utility

Anonymous — Tue, 25 Oct 2011 17:04:13 GMT

I have currently have 2 unsecured bank credit cards and 1 Jared store card. I only have a balance($495) on the Jared card which has about a 9% utility. Does the utility of a store card have a less effect on the FICO score then a bank credit card would?

Re: Credit Card and Store Card Utility

tcbofade — Tue, 25 Oct 2011 17:09:07 GMT

I don't think it makes any difference.

Re: Credit Card and Store Card Utility

Guava — Tue, 25 Oct 2011 17:11:26 GMT

I'm guessing by "utility" you probably mean "utilization"; on that assumption, there's no difference in having balance on a bank card or a store card.

Re: Credit Card and Store Card Utility

MarineVietVet — Tue, 25 Oct 2011 20:25:41 GMT

@Guava wrote:
I'm guessing by "utility" you probably mean "utilization"; on that assumption, there's no difference in having balance on a bank card or a store card.

~~Revolving utilization is all the same~~. This is incorrect. See my update in message # 6 of this thread.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Credit Card and Store Card Utility

Anonymous — Tue, 25 Oct 2011 17:42:59 GMT

As long as it reports, there's no real difference. I'm relatively sure a Jared card reports your CL and all the other info to the CRAs, so it doesn't matter whcih card you use.

The only difference is with 'store cards' like Newegg/Tigerdirect preferred accounts that don't really report anything unless you get late payments. If it doesn't report your CL or a balance, it obviously doesn't affect your utilization.

But if it shows up on your credit report, then a card is a card, and utilization is utilization.

Re: Credit Card and Store Card Utility

MarineVietVet — Tue, 25 Oct 2011 20:09:38 GMT

UPDATE.

I just found out I was wrong in my first statement. This from myFICO: The score gives less weight to retail card util than bankcards.

I apologize for my big mistake.

Re: Credit Card and Store Card Utility

fused — Tue, 25 Oct 2011 20:18:33 GMT

@MarineVietVet wrote:
UPDATE.

I just found out I was wrong in my first statement. This from myFICO: The score gives less weight to retail card util than bankcards.

I apologize for my big mistake.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Correct! We have a winner!

Re: Credit Card and Store Card Utility

Anonymous — Tue, 25 Oct 2011 20:44:11 GMT

@MarineVietVet wrote:
UPDATE.

I just found out I was wrong in my first statement. This from myFICO: The score gives less weight to retail card util than bankcards.

I apologize for my big mistake.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

How much less weight? Any idea? How about a link to article?

Re: Credit Card and Store Card Utility

MarineVietVet — Tue, 25 Oct 2011 20:47:13 GMT

@Anonymous wrote:

How much less weight? Any idea? How about a link to article?

I'll try to see if there is a definitive answer about this. It might be the usual YMMV.

There is no article or link. Just someone high up in the food chain.

Re: Credit Card and Store Card Utility

Anonymous — Tue, 25 Oct 2011 20:56:28 GMT

@MarineVietVet wrote:
@Anonymous wrote:

How much less weight? Any idea? How about a link to article?
I'll try to see if there is a definitive answer about this. It might be the usual YMMV.

There is no article or link. Just someone high up in the food chain.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Here is another question, I've wondered about. How important is the single highest utilization card versus the overall utilization?

Re: Credit Card and Store Card Utility

MarineVietVet — Tue, 25 Oct 2011 20:58:13 GMT

Wolf3 wrote:

Here is another question, I've wondered about. How important is the single highest utilization card versus the overall utilization?

I don't have an answer for that. I will defer to others on that question.

Re: Credit Card and Store Card Utility

Guava — Tue, 25 Oct 2011 21:19:20 GMT

Learned a new piece of knowledge today

Re: Credit Card and Store Card Utility

MarineVietVet — Tue, 25 Oct 2011 21:40:21 GMT

Wolf3 wrote:

How much less weight? Any idea? How about a link to article?

I have an answer: The differences are slight and the same principles apply for bankcards/retail and overall util/highest util card.

Re: Credit Card and Store Card Utility

Anonymous — Wed, 26 Oct 2011 00:37:42 GMT

@MarineVietVet wrote:
@Anonymous wrote:

How much less weight? Any idea? How about a link to article?
I have an answer: The differences are slight and the same principles apply for bankcards/retail and overall util/highest util card.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Very good to know. Thanks

Re: Credit Card and Store Card Utility

Guava — Wed, 26 Oct 2011 00:52:39 GMT

@MarineVietVet wrote:
@Anonymous wrote:

How much less weight? Any idea? How about a link to article?
I have an answer: The differences are slight and the same principles apply for bankcards/retail and overall util/highest util card.

I have a question about the bold part, just to clarify for my understanding.

Is it slightly more favorable in term of FICO scores to have a single highest util card than overall relatively medium/high util across several cards? or is it the other way around?

Re: Credit Card and Store Card Utility

MarineVietVet — Wed, 26 Oct 2011 01:12:30 GMT

@Guava wrote:
I have an answer: The differences are slight and the same principles apply for bankcards/retail and overall util/highest util card.

I have a question about the bold part, just to clarify for my understanding.

Is it slightly more favorable in term of FICO scores to have a single highest util card than overall relatively medium/high util across several cards? or is it the other way around?

You've asked another question I don't have the answer to. I'm not doing very well in this thread.

Re: Credit Card and Store Card Utility

Guava — Wed, 26 Oct 2011 01:29:43 GMT

Haha, I think you're doing a marvelous job! You did correct the inaccurate info I typed on the 1st page; you went as far as to verify that. A "don't know" is better than spitballing purported info

Re: Credit Card and Store Card Utility

MarineVietVet — Wed, 26 Oct 2011 01:31:32 GMT

@Guava wrote:
Haha, I think you're doing a marvelous job! You did correct the inaccurate info I typed on the 1st page; you went as far as to verify that. A "don't know" is better than spitballing purported info

Those seem to be 2 of my most used words.

Re: Credit Card and Store Card Utility

Anonymous — Wed, 26 Oct 2011 02:47:39 GMT

@MarineVietVet wrote:
@Guava wrote:
Haha, I think you're doing a marvelous job! You did correct the inaccurate info I typed on the 1st page; you went as far as to verify that. A "don't know" is better than spitballing purported info
Those seem to be 2 of my most used words.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

I love working with people who say they don't know when they don't know.

One of the guys I work wiith has a hard time just admitting he doesn't know, It wastes a lot of time and I have to punish him for it.

Re: Credit Card and Store Card Utility

thebanjoman — Wed, 26 Oct 2011 03:43:09 GMT

@MarineVietVet wrote:
@Anonymous wrote:

How much less weight? Any idea? How about a link to article?
I have an answer: The differences are slight and the same principles apply for bankcards/retail and overall util/highest util card.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Hmm. If store cards and bank cards are in seperate buckets... does that mean credit unions are a third, seperate bucket for utilization treatment? I believe i've seen it broken down into those three categories before.

Also, does this mean that the concept that a small balance should be left on a single card indicates use of credit whereas all zeros is treated as ignorance or disuses of credit can be broken down further into a balance left solely on a bankcard indicates disuse of store cards and/or vice versa?