topic Department Store Cards in Credit Cards

Department Store Cards

Anonymous — Fri, 08 Feb 2008 19:48:16 GMT

I had Koll's and Montgomery Wards back in the day. I defaulted HORRIBLY on both back when I was 18 both charge off's collections and the whole 9. I was wondering if they still had ridicoulous interest rates like they did before?

Re: Department Store Cards

Anonymous — Fri, 08 Feb 2008 19:57:01 GMT

Do you want to have same CC again? If so why don't you call them and ask? Or check it on-line.

Re: Department Store Cards

Anonymous — Fri, 08 Feb 2008 21:03:11 GMT

bunnyrabbit wrote:
Do you want to have same CC again? If so why don't you call them and ask? Or check it on-line.

Oh thanks for that advice I'm sure I would have never thought of that. The point of this forum is to share information, specifically first hand user information. In my book I rather listen two someone who uses the pruduct then the over inflated specs on the website. If you call you get some kid reading form a script anyway thats if yure lucky. if you're not you get some kid from India with heavy accent.

Message Edited by ddd on 02-08-2008 01:03 PM

Re: Department Store Cards

Anonymous — Fri, 08 Feb 2008 21:04:56 GMT

LOL!! all store cards have ridiculous rates.

Re: Department Store Cards

Anonymous — Fri, 08 Feb 2008 21:12:09 GMT

Brammy wrote:
LOL!! all store cards have ridiculous rates.

LOL I just havent had one in such a lonf time, I was wondering what the BUZZ was because there is allot of threads on Department Store Cards.

Re: Department Store Cards

Anonymous — Fri, 08 Feb 2008 21:17:06 GMT

ddd wrote:

Brammy wrote:
LOL!! all store cards have ridiculous rates.

LOL I just havent had one in such a lonf time, I was wondering what the BUZZ was because there is allot of threads on Department Store Cards.

People like them because FICO likes to see a mix of different types of credit, and store cards are measured differently by FICO than major bank cards. They count as an additional card type in one's "mix."

This effect is probably overstated, though. It is possible to get high FICOs without an installment loan, or without a mortgage, or without a gas card or a store card.

Also, people like to have cards for places they shop frequently because some of them have some decent rewards and 0% deals if you spend a lot of money at one particular store.

Re: Department Store Cards

Anonymous — Fri, 08 Feb 2008 21:22:58 GMT

cheddar wrote:

ddd wrote:

Brammy wrote:
LOL!! all store cards have ridiculous rates.

LOL I just havent had one in such a lonf time, I was wondering what the BUZZ was because there is allot of threads on Department Store Cards.

People like them because FICO likes to see a mix of different types of credit, and store cards are measured differently by FICO than major bank cards. They count as an additional card type in one's "mix."

This effect is probably overstated, though. It is possible to get high FICOs without an installment loan, or without a mortgage, or without a gas card or a store card.

Also, people like to have cards for places they shop frequently because some of them have some decent rewards and 0% deals if you spend a lot of money at one particular store.

Wow wait are you saying that If I get a department store card it can boost my credit? I tought they were graded the same as regualr bank credit cards?

Re: Department Store Cards

Anonymous — Fri, 08 Feb 2008 21:25:45 GMT

ddd wrote:

Wow wait are you saying that If I get a department store card it can boost my credit? I tought they were graded the same as regualr bank credit cards?

They're counted almost the same as regular bank cards, but not as heavily (bank cards have a larger effect on your score than store cards). They also report as a different account type. A bankcard may report as "Open" or "Revolving", but a store card reports as a "Charge Account." That's how FICO knows how to distinguish them.

It's impossible to say whether getting one will help your score, but yes, it can help your mix of credit if you don't already have several different types of TLs.

Re: Department Store Cards

haulingthescoreup — Fri, 08 Feb 2008 23:58:54 GMT

I'm still awfully skeptical that they help, but I've seen enough posts by members who said that getting one helped their score that I grudgingly accept it. I've got the two on my siggy on the list, plus Borders.

If the store card is also co-branded with MC, Visa, Discover, or AmEx, it counts as a major, not a store card.

In general, all store cards have crazy high interest rates, except for instances like Home Dept and BB, where they have 0% for a set period, because their goodies are so expensive. So I think of store cards as automatic PIF'ers.

Also, too many store cards are handled by horrible banks with horrible customer service and vicious collection departments.

So my rule of thumb (rules, I guess) would be:
- find out who the bank is first
- only get a card from a store where you actually like to shop
- don't bother unless you get fantastic cardholder deals
- PIF, PIF, PIF!

Re: Department Store Cards

Anonymous — Sat, 09 Feb 2008 04:44:30 GMT

Agreed. All stores have ridiculous rates, but they only come into play if you don't PIF. Seriously, when it comes to store cards, it's best to be a "deadbeat."

Re: Department Store Cards

Anonymous — Sat, 09 Feb 2008 17:40:41 GMT

@haulingthescoreup wrote:
I'm still awfully skeptical that they help, but I've seen enough posts by members who said that getting one helped their score that I grudgingly accept it. I've got the two on my siggy on the list, plus Borders.

If the store card is also co-branded with MC, Visa, Discover, or AmEx, it counts as a major, not a store card.

In general, all store cards have crazy high interest rates, except for instances like Home Dept and BB, where they have 0% for a set period, because their goodies are so expensive. So I think of store cards as automatic PIF'ers.

Also, too many store cards are handled by horrible banks with horrible customer service and vicious collection departments.

So my rule of thumb (rules, I guess) would be:
- find out who the bank is first
- only get a card from a store where you actually like to shop
- don't bother unless you get fantastic cardholder deals
- PIF, PIF, PIF!

This is not necessarily true. Macy's Visas report to credit reports as two lines of credit, because they are. There's a Macy's credit line and the DSNB credit line.

Re: Department Store Cards

Anonymous — Sat, 09 Feb 2008 17:52:49 GMT

I like my store and gas cards as 'anchors' for age of credit - if in the future I want to switch MC/V cards (for whatever reason) - those darn store & gas cards will always be there (no fee, lousy rate but PIF solves the rate issue).

Have 4 store, 3 gas and 4 MC/V currently - one of the store I am hoping to turn to a co-brand (target) to replace 2 of the MC/V (so down to 3 store, 3 gas and 3 MC/V). A Discover is a "maybe" in the future as is AmEx (plat or better only) - and only if I have a real need for those (not just to have it again). A CU MC/V is on the list though (and will replace one of the MC/V - Cap1).

Re: Department Store Cards

Anonymous — Sat, 09 Feb 2008 19:22:32 GMT

lurknomore wrote:
Agreed. All stores have ridiculous rates, but they only come into play if you don't PIF. Seriously, when it comes to store cards, it's best to be a "deadbeat."

Then whats the point of ussing them? do you get rewards like bank cards?

Re: Department Store Cards

Anonymous — Sat, 09 Feb 2008 19:24:19 GMT

Lady_Scarlet wrote:
I like my store and gas cards as 'anchors' for age of credit - if in the future I want to switch MC/V cards (for whatever reason) - those darn store & gas cards will always be there (no fee, lousy rate but PIF solves the rate issue).

Have 4 store, 3 gas and 4 MC/V currently - one of the store I am hoping to turn to a co-brand (target) to replace 2 of the MC/V (so down to 3 store, 3 gas and 3 MC/V). A Discover is a "maybe" in the future as is AmEx (plat or better only) - and only if I have a real need for those (not just to have it again). A CU MC/V is on the list though (and will replace one of the MC/V - Cap1).

The Discover are good just to have but A Plat amex I agree only if it works for you.

Re: Department Store Cards

Anonymous — Sat, 09 Feb 2008 19:38:09 GMT

ddd wrote:

lurknomore wrote:
Agreed. All stores have ridiculous rates, but they only come into play if you don't PIF. Seriously, when it comes to store cards, it's best to be a "deadbeat."

Then whats the point of ussing them? do you get rewards like bank cards?

Yes, most store cards have rewards programs and/or extended 0% offers.

Message Edited by cheddar on 02-09-2008 11:38 AM

Re: Department Store Cards

haulingthescoreup — Sat, 09 Feb 2008 19:57:00 GMT

@Anonymous wrote:

Then whats the point of ussing them? do you get rewards like bank cards?

They have rewards, but they tend to be store rewards: extra 30% off, 0% for X number of months, etc. That's what I was saying in my post above. If you get a store card, it's best to get one where you actually shop at that store, and you like their stuff, and you take advantage of their deals.

@Anonymous wrote:

This is not necessarily true. Macy's Visas report to credit reports as two lines of credit, because they are. There's a Macy's credit line and the DSNB credit line.

Thanks, I need to tuck that into my over-heated brain! That might well be unique to Macy's, though.

Message Edited by haulingthescoreup on 02-09-2008 11:57 AM

Re: Department Store Cards

Anonymous — Sat, 09 Feb 2008 22:25:30 GMT

Does anyone know what store or gas card I might get approved for. Fico eq 602 tu 609 ex ? Also ex is not showing anything on my cr good or bad, why?

Re: Department Store Cards

Red1Blue — Sat, 09 Feb 2008 22:34:07 GMT

I just saved 15% on my purchases just for using the Macy's card at the store. Store Cards have their own perks for using their cards at the store. I guess it is a way of building customer loyalty to their stores.

Re: Department Store Cards

Anonymous — Sun, 10 Feb 2008 04:17:42 GMT

haulingthescoreup wrote:

thevariable wrote:

This is not necessarily true. Macy's Visas report to credit reports as two lines of credit, because they are. There's a Macy's credit line and the DSNB credit line.

Thanks, I need to tuck that into my over-heated brain! That might well be unique to Macy's, though.

Message Edited by haulingthescoreup on 02-09-2008 11:57 AM

The Saks Fifth Avenue World Elite MasterCard also reports as two lines of credit--the Saks Fifth Avenue credit line, and the HSBC credit line.

Re: Department Store Cards

Anonymous — Sun, 10 Feb 2008 04:23:01 GMT

haulingthescoreup wrote:
thevariable wrote:

This is not necessarily true. Macy's Visas report to credit reports as two lines of credit, because they are. There's a Macy's credit line and the DSNB credit line.

Thanks, I need to tuck that into my over-heated brain! That might well be unique to Macy's, though.

There's also another quirk about Macy's that I've seen discussed a few times. Apparently, as thevariable mentioned, if you have the Macy's Visa you have two credit lines, one for the store card, and one for the Visa. However, if you use either of the cards at Macy's, the purchase goes on your Macy's store card!

So let's say you have $500 on the store card and $2000 on the Visa. You might use the Visa at Macy's for $600, thinking it's OK because you have a $2K CL. Instead, unless you specify otherwise, they apparently apply the purchase to your $500 store CL, even though that wasn't the card you used. That's when the "fun" begins.