topic Re: Why store-specific cards ? in Credit Cards

Why store-specific cards ?

NonSufficientFunds — Fri, 28 Feb 2014 17:45:40 GMT

I currently have all the big-name cards (Visa/MC/Disc/AmEx), but I do not have any store-specific cards.

My question is: What is the point in carrying a card that can only be used at one store/chain - especially since those same stores also accept the major network cards?

I have read somewhere, that having a store-specific card might help with the "Mix of Credit Types", which accounts for 10% of the FICO score, but why would one "revolving" account be considered any different than another for scoring purposes ?

Since store cards typically offer low-limits and high APRs, is it actually worth the hard-pull to apply for one ?

Re: Why store-specific cards ?

tattooedhusker — Fri, 28 Feb 2014 17:49:08 GMT

@NonSufficientFunds wrote:
I currently have all the big-name cards (Visa/MC/Disc/AmEx), but I do not have any store-specific cards.

My question is: What is the point in carrying a card that can only be used at one store/chain - especially since those same stores also accept the major network cards?

I have read somewhere, that having a store-specific card might help with the "Mix of Credit Types", which accounts for 10% of the FICO score, but why would one "revolving" account be considered any different than another for scoring purposes ?

Since store cards typically offer low-limits and high APRs, is it actually worth the hard-pull to apply for one ?

If you shop at a specific store heavily (Like I do Gordman's) you will get 10, 20, even 30% off coupons frequently. Other chains that have larger priced items (Best Buy, Nebraska Furniture Mart, etc) frequently offer special interest offers, so buying a large ticket item is cheaper financing since you don't have to pay interest for a certain amount of time.

Re: Why store-specific cards ?

Raiders1 — Fri, 28 Feb 2014 18:12:43 GMT

Other than the discount coupons and the special interest they offer, which I don't really take advantage of, I used them as a way to build credit. When I started rebuilding and no one else gave me unsecured credit, Walmart did. I started with a CL of $150 which has now grown to $1700. Once you're credit is good enough to get regular unsecured credit cards there really is no need for store cards. I have no reason to apply for any store cards, I just keep the Walmart card, because they don't charge an AF anyway. Store cards are still revolving credit so they don't change your "mix of credit types".

Re: Why store-specific cards ?

gdale6 — Fri, 28 Feb 2014 18:53:25 GMT

Special deals only store card holders can get and you need a few for the mix of credit category of FICO

Re: Why store-specific cards ?

tattooedhusker — Fri, 28 Feb 2014 18:53:28 GMT

@Raiders1 wrote:
Other than the discount coupons and the special interest they offer, which I don't really take advantage of, I used them as a way to build credit. When I started rebuilding and no one else gave me unsecured credit, Walmart did. I started with a CL of $150 which has now grown to $1700. Once you're credit is good enough to get regular unsecured credit cards there really is no need for store cards. I have no reason to apply for any store cards, I just keep the Walmart card, because they don't charge an AF anyway. Store cards are still revolving credit so they don't change your "mix of credit types".

+1 to this. I imagine this is the number one reason people get store cards. Best Buy was one of my first cards, I got it when nobody else would bat an eye at me

Re: Why store-specific cards ?

BearsAndTurtlesRtheBest — Fri, 28 Feb 2014 18:57:00 GMT

+1 they are a great way to build credit considering the CL increases are great

Re: Why store-specific cards ?

spambait — Fri, 28 Feb 2014 19:51:33 GMT

tattooedhusker is right -- deals, extra sales, coupons, etc. For instance, the Target card gets you 5% off everything every time you shop.

but beyond those cases, there's really not much point. I got a Sears card ages ago because getting it meant i got free delivery on my fridge. But they canceled it years ago for non-use. Macy's, same deal when I bought some furniture. Haven't used it in years, but they keep it open. Both Macy's & JCPenney have special offers that are only for cardholders.

my current rule of thumb: unless i can get something worth $100 out of opening it, I won't bother with a store card.

Re: Why store-specific cards ?

Leadberry — Fri, 28 Feb 2014 19:53:18 GMT

@NonSufficientFunds wrote:
I currently have all the big-name cards (Visa/MC/Disc/AmEx), but I do not have any store-specific cards.

My question is: What is the point in carrying a card that can only be used at one store/chain - especially since those same stores also accept the major network cards?

I have read somewhere, that having a store-specific card might help with the "Mix of Credit Types", which accounts for 10% of the FICO score, but why would one "revolving" account be considered any different than another for scoring purposes ?

Since store cards typically offer low-limits and high APRs, is it actually worth the hard-pull to apply for one ?

I keep the Walmart card around because they run 12-24 month 0% APR offers throughout the year.