topic Re: Best store card? in Credit Cards

Best store card?

Anonymous — Fri, 25 Nov 2011 15:56:36 GMT

It seems like everyone agrees that having a store card helps your credit.

The problem is I don't really buy anything except food, booze, and maybe a videogame once a month. I do pretty much all my shopping for socks and t-shirts or whatever on Amazon, but their card doesn't even give any cash back, so I'd rather just use my Amex for that.

What's the best store card for me?

Re: Best store card?

Anonymous — Fri, 25 Nov 2011 16:11:10 GMT

wal-mart gives free TU fico score every month...

@Anonymous wrote:
It seems like everyone agrees that having a store card helps your credit.

The problem is I don't really buy anything except food, booze, and maybe a videogame once a month. I do pretty much all my shopping for socks and t-shirts or whatever on Amazon, but their card doesn't even give any cash back, so I'd rather just use my Amex for that.

What's the best store card for me?

Re: Best store card?

Anonymous — Fri, 25 Nov 2011 21:18:21 GMT

@Anonymous wrote:
It seems like everyone agrees that having a store card helps your credit.

Hi lesscryptic,

Welcome to the forums! First off, IIRC, Amazon has two cards. Depending on which card you hold, you already may have a store card. That being said, and for the benefit of others reading this post, a store card in and of itself will not up your credit score. FICO does look for mix of credit, including whether or not you have revolving accounts. And they do care if you have a major bank revolving account (you only need one to qualify for that FICO reason code - and of course your AmEx qualifies for that).

This text is from myfico.com’sCreditEducationCentertab, under “What’s In Your Score”

Types of Credit Used: Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)

Although this is a list of the types of information the formula is evaluating, it is not a list of accounts that have positive impacts or that will yield score increases. This is evidenced by consumer finance accounts being included in the list.

When we’re trying to understand how different accounts affect our FICO scores, it helpful to look at the published info -- the FICO Reason Codes. Having access to these codes helps us understand FICO scoring and how we can affect our own FICO’s. They are posted here.

Awhile back, a few of us did an experiment. You can check out happy’s Team Guinea Pig results, which posted FICO results for opening a first merchant (or store) account.

I kept data for a bit longer (six months) and have these results: (Warning - very dry data ahead......)

Started with no current revolving credit, two installment loans.

Added Orchard Visa ($500 CL – $104 to $0 balance): +20 pts.

Added Macy’s Store Card ($1,000 CL – $148-0 balance): -5 pts.

Added 3 inquiries all same day: -3 pts.

Added 3 GEMB cards all same day ($2,400 CL - $235 balance): +5 pts.

Added BofA ($500 CL – $0 balance): 0 pts

DH carried out the same experiment with similar results - zero points for him when adding the Macy's store card:

Started with no current revolving credit, one mortgage, one installment loan.

Added Orchard Visa ($500 CL - $27 balance): +28 pts.

Added Alliant CU Visa ($10,000 CL - $0 balance): +2 pts.

Added Cabela’s Visa ($5,000 CL - $0 balance): 0 pts.

Added Macy’s Store Card ($1,200 CL - $0 balance): 0 pts. (His Macy's Visa reported later and resulted in a minor score decrease)

Added GEMB Care Credit ($11,500 - $0 balance): +1 pt.

Added Kroger’s Visa ($10,000 CL - $0 balance): +6 pts.

Added BofA ($500 CL - $0 balance): -2 pts.

That's enough data points for me for one day. I'm gonna go make me a fruit smoothie - heavy on the papaya.

At any rate, hope some of that is helpful!

Re: Best store card?

Anonymous — Fri, 25 Nov 2011 21:58:40 GMT

@Anonymous wrote:
It seems like everyone agrees that having a store card helps your credit.

The problem is I don't really buy anything except food, booze, and maybe a videogame once a month. I do pretty much all my shopping for socks and t-shirts or whatever on Amazon, but their card doesn't even give any cash back, so I'd rather just use my Amex for that.

What's the best store card for me?

Do any of the stores you buy food/booze/videogames from have a card? The Target Red Card is a 5% discount on all in-store purchases and they sell food, booze, videogames, t-shirts, and socks. Sounds perfect for you

Re: Best store card?

Anonymous — Sat, 26 Nov 2011 05:36:08 GMT

I have the Walmart and Target retail cards. The Walmart card provides you with a free TU04 score every month and during the holiday season they will give you 12 months of zero percent financing on purchases made either in-store or on walmart.com. The Target card gives you 5% off every purchase plus free shipping on purchases made through target.com. I've had those cards for three years now and they have served me well.

Re: Best store card?

Anonymous — Sat, 26 Nov 2011 06:08:29 GMT

ah, so what im gathering is that a store revolving account does not factor into my mix of credit

although that list does say "retail accounts"

agh

Re: Best store card?

jason86423 — Sat, 26 Nov 2011 06:19:17 GMT

They do factor in Utilzation as long as they report a CL. When my credit was on the rebuild GE "store/retail" cards helped me out big time. Got me back into the game with the big boys. Now I have a $8500 limit on my Sam's club personal card , $4800 on JCP and $3800 on Amazon to mention a few, plus many big limit Visa's, Amexes, etc.

Walmart does give you a Fico score every month which if you are rebuilding is and awesome freebie!

Re: Best store card?

Anonymous — Sat, 26 Nov 2011 06:46:27 GMT

@Anonymous wrote:
I have the Walmart and Target retail cards. The Walmart card provides you with a free TU04 score every month and during the holiday season they will give you 12 months of zero percent financing on purchases made either in-store or on walmart.com. The Target card gives you 5% off every purchase plus free shipping on purchases made through target.com. I've had those cards for three years now and they have served me well.

It's actually the new TU08 score.

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: Best store card?

Anonymous — Sat, 26 Nov 2011 06:49:38 GMT

@Anonymous wrote:
ah, so what im gathering is that a store revolving account does not factor into my mix of credit

although that list does say "retail accounts"

agh

Any revolving account is considered part of your credit mix.

Included in the credit mix are credit cards, retail accounts, installment loans, mortgages, consumer finance accounts.

Re: Best store card?

Anonymous — Sat, 26 Nov 2011 06:53:32 GMT

Just get as many accounts as you can that way in 5 years your average age of accounts will be unshakeable.

Re: Best store card?

Anonymous — Sat, 26 Nov 2011 07:31:49 GMT

is a macys store card (not associated with visa, mc, etc) a "retail account" or a "revolving account"

Re: Best store card?

Anonymous — Sat, 26 Nov 2011 19:24:43 GMT

@Anonymous wrote:
is a macys store card (not associated with visa, mc, etc) a "retail account" or a "revolving account"

It's actually both. The "revolving account" thing means bank card, including the co-branded ones like Macy's AmEx.

Re: Best store card?

LS2982 — Sat, 26 Nov 2011 22:54:04 GMT

@Anonymous wrote:
It seems like everyone agrees that having a store card helps your credit.

The problem is I don't really buy anything except food, booze, and maybe a videogame once a month. I do pretty much all my shopping for socks and t-shirts or whatever on Amazon, but their card doesn't even give any cash back, so I'd rather just use my Amex for that.

What's the best store card for me?

I would reccomend the Walmart card as well. Free FICO, can pull cash and shows up as a purchase on statement

Re: Best store card?

LS2982 — Sat, 26 Nov 2011 22:55:40 GMT

@Anonymous wrote:
Just get as many accounts as you can that way in 5 years your average age of accounts will be unshakeable.

That wouldn't be a good idea to do all at once but maybe 2-3 every 2 years so your not getting too many INQ denials and too many recvent accounts denials.