topic Re: Store Charge Card in Credit Cards

Store Charge Card

Anonymous — Sat, 11 Feb 2012 13:33:38 GMT

Hello,

Last night, I went shopping with my wife, and we bought supplies at home depot for a renovation that is being done on our home. At the checkout, the cashier offered me a home depot credit card. He said that I would save 15% of my purchase today, and I will save 10% on all future purchases. So, I signed up, and got approved for it. I'm worried about the interest rate, and if having the card will affect my credit at all. I have perfect credit, and I've never missed a loan payment in my whole life. But, do store cards affect a credit score that much? Thanks!

Re: Store Charge Card

Anonymous — Sat, 11 Feb 2012 13:41:45 GMT

I do not believe a store card will affect your credit at all, if anything it may help with your "Mix of Credit"

The only two things I can think of that might affect your credit score adversely is the inq and the new TL, lowering your AAoA's, you could see a small drop in points and you may not, this is a YMMV situation.

Re: Store Charge Card

Revelate — Sat, 11 Feb 2012 13:44:35 GMT

Any new account will negatively affect your credit temporarily. By how much is unquantifiable as it's case-by-case for everyone... though I would be stunned and amazed if it dropped you out of the top tier of credit even on a short-term basis with your score.

You're doing renovations on your house, so it's likely you're going to be going back to Home Depot quite a bit: that's the perfect reason to carry a store card. APR, if you're paying it quickly it doesn't matter much... you have to pay pretty slowly to overcome the 10% discount you're getting.

Don't sweat it: you have the financial habits already to get to your gold-plated FICO status, just keep doing what you're doing and you'll be fine.

Re: Store Charge Card

Anonymous — Sat, 11 Feb 2012 13:50:57 GMT

Exactally why I went with getting the card. I always get offered credit cards from stores such as sears, macys, jc penny, and tons of other stores. I don't have any store cards, because many of them usually carry huge interest rates if I don't pay off my balance in full. (Which I do anyways.). But, thanks for your help!

Re: Store Charge Card

the_jan_b — Sat, 11 Feb 2012 13:54:17 GMT

@Anonymous wrote:
Exactally why I went with getting the card. I always get offered credit cards from stores such as sears, macys, jc penny, and tons of other stores. I don't have any store cards, because many of them usually carry huge interest rates if I don't pay off my balance in full. (Which I do anyways.). But, thanks for your help!

If you pay your balance(s) in full, the interest rate doesn't really matter; as long as you PIF before your statement date.

Re: Store Charge Card

Anonymous — Sat, 11 Feb 2012 14:08:49 GMT

@Revelate wrote:
Any new account will negatively affect your credit temporarily. By how much is unquantifiable as it's case-by-case for everyone... though I would be stunned and amazed if it dropped you out of the top tier of credit even on a short-term basis with your score.

You're doing renovations on your house, so it's likely you're going to be going back to Home Depot quite a bit: that's the perfect reason to carry a store card. APR, if you're paying it quickly it doesn't matter much... you have to pay pretty slowly to overcome the 10% discount you're getting.

Don't sweat it: you have the financial habits already to get to your gold-plated FICO status, just keep doing what you're doing and you'll be fine.

@Not always true, I had opened two new accounts in May of 2011 (Discover and BoA) and my EQ and TU scores actually went up by 4 or 5 points (once the cards reported) my util was @ 1% when I apped and at the time they reported, so the increase was not due to util.

I did expect a slight score drop, but was surprised when my scores went up a few points once the cards reported, my AAoA's is pretty high, so those two new TL's did not affect my AAoA's to the point where it dinged me, and the inq's were spread out between EQ and EX.

Like I said in my first reply, this is a YMMV type of situation.

Re: Store Charge Card

Revelate — Sat, 11 Feb 2012 14:29:45 GMT

@Anonymous wrote:
@Revelate wrote:
Any new account will negatively affect your credit temporarily. By how much is unquantifiable as it's case-by-case for everyone... though I would be stunned and amazed if it dropped you out of the top tier of credit even on a short-term basis with your score.

You're doing renovations on your house, so it's likely you're going to be going back to Home Depot quite a bit: that's the perfect reason to carry a store card. APR, if you're paying it quickly it doesn't matter much... you have to pay pretty slowly to overcome the 10% discount you're getting.

Don't sweat it: you have the financial habits already to get to your gold-plated FICO status, just keep doing what you're doing and you'll be fine.
@Not always true, I had opened two new accounts in May of 2011 (Discover and BoA) and my EQ and TU scores actually went up by 4 or 5 points (once the cards reported) my util was @ 1% when I apped and at the time they reported, so the increase was not due to util.

I did expect a slight score drop, but was surprised when my scores went up a few points once the cards reported, my AAoA's is pretty high, so those two new TL's did not affect my AAoA's to the point where it dinged me, and the inq's were spread out between EQ and EX.

Like I said in my first reply, this is a YMMV type of situation.

You're probably right that always is too strong a word; however, I think that usually it the case unless offset by something else.

Things that might keep it from being a straight negative:

- You already have some inquiries on your record and the addititional one doesn't rebucket you (or however the inquiry penalty is assessed).

- You're adding to your mix of credit category as you pointed out up above.

- Amex backdating (!!!)

- Your AAoA is so large and diverse that one additional account is trivial

- Thin file situations (I went from 0 to 21k in debt and got a FICO boost... it's not always rational).

I think though, that it's typically some other improvement in your report which offsets the new account rather than the new account not being a penalty... and unfortunately that's also individual and statistically unquantifiable by us mortals.

Re: Store Charge Card

Anonymous — Sat, 11 Feb 2012 14:49:34 GMT

@Revelate wrote:
@Anonymous wrote:
@Revelate wrote:
Any new account will negatively affect your credit temporarily. By how much is unquantifiable as it's case-by-case for everyone... though I would be stunned and amazed if it dropped you out of the top tier of credit even on a short-term basis with your score.

You're doing renovations on your house, so it's likely you're going to be going back to Home Depot quite a bit: that's the perfect reason to carry a store card. APR, if you're paying it quickly it doesn't matter much... you have to pay pretty slowly to overcome the 10% discount you're getting.

Don't sweat it: you have the financial habits already to get to your gold-plated FICO status, just keep doing what you're doing and you'll be fine.
@Not always true, I had opened two new accounts in May of 2011 (Discover and BoA) and my EQ and TU scores actually went up by 4 or 5 points (once the cards reported) my util was @ 1% when I apped and at the time they reported, so the increase was not due to util.

I did expect a slight score drop, but was surprised when my scores went up a few points once the cards reported, my AAoA's is pretty high, so those two new TL's did not affect my AAoA's to the point where it dinged me, and the inq's were spread out between EQ and EX.

Like I said in my first reply, this is a YMMV type of situation.

You're probably right that always is too strong a word; however, I think that usually it the case unless offset by something else.

Things that might keep it from being a straight negative:
- You already have some inquiries on your record and the addititional one doesn't rebucket you (or however the inquiry penalty is assessed).
- You're adding to your mix of credit category as you pointed out up above.
- Amex backdating (!!!)
- Your AAoA is so large and diverse that one additional account is trivial
- Thin file situations (I went from 0 to 21k in debt and got a FICO boost... it's not always rational).

I think though, that it's typically some other improvement in your report which offsets the new account rather than the new account not being a penalty... and unfortunately that's also individual and statistically unquantifiable by us mortals.

Very good points Revelate.

That's pretty amazing that you went from 0 revolving debt to 21K revolving debt and saw an increase, I'm sure that brought your util up significantly (unless you have like 200K in avail revolving credit) either way, you are right that we mere mortals will never figure out FICO scoring completely.

Re: Store Charge Card

Anonymous — Sat, 11 Feb 2012 15:17:37 GMT

I agree that this is YMMV situation.

Re: Store Charge Card

Revelate — Sun, 12 Feb 2012 01:46:51 GMT

@Anonymous wrote:
@Revelate wrote:
You're probably right that always is too strong a word; however, I think that usually it the case unless offset by something else.

Things that might keep it from being a straight negative:
- You already have some inquiries on your record and the addititional one doesn't rebucket you (or however the inquiry penalty is assessed).
- You're adding to your mix of credit category as you pointed out up above.
- Amex backdating (!!!)
- Your AAoA is so large and diverse that one additional account is trivial
- Thin file situations (I went from 0 to 21k in debt and got a FICO boost... it's not always rational).

I think though, that it's typically some other improvement in your report which offsets the new account rather than the new account not being a penalty... and unfortunately that's also individual and statistically unquantifiable by us mortals.

Very good points Revelate.

That's pretty amazing that you went from 0 revolving debt to 21K revolving debt and saw an increase, I'm sure that brought your util up significantly (unless you have like 200K in avail revolving credit) either way, you are right that we mere mortals will never figure out FICO scoring completely.

Heh, in this case it was an installment tradeline (auto loan). Going from 0 -> 21K revolving debt with the scores in my signature and getting a score boost... well .

Re: Store Charge Card

LS2982 — Sun, 12 Feb 2012 01:51:52 GMT

@Anonymous wrote:
Hello,
Last night, I went shopping with my wife, and we bought supplies at home depot for a renovation that is being done on our home. At the checkout, the cashier offered me a home depot credit card. He said that I would save 15% of my purchase today, and I will save 10% on all future purchases. So, I signed up, and got approved for it. I'm worried about the interest rate, and if having the card will affect my credit at all. I have perfect credit, and I've never missed a loan payment in my whole life. But, do store cards affect a credit score that much? Thanks!

You may experience an AAoA hit, the INQ and new account ding but other than that you'll be fine.

Re: Store Charge Card

LS2982 — Sun, 12 Feb 2012 01:52:21 GMT

@digitaldiva wrote:
@Anonymous wrote:
Exactally why I went with getting the card. I always get offered credit cards from stores such as sears, macys, jc penny, and tons of other stores. I don't have any store cards, because many of them usually carry huge interest rates if I don't pay off my balance in full. (Which I do anyways.). But, thanks for your help!
If you pay your balance(s) in full, the interest rate doesn't really matter; as long as you PIF before your statement date.