topic Effect of store LOC? in Understanding FICO® Scoring

Effect of store LOC?

Auricom — Mon, 15 Mar 2021 05:41:18 GMT

I own a small multifamily apartment building and have an account with a local locksmith who provides various services for my building when needed. They're oldschool and rather than keep my CC on file, they offered me a line of credit, which would be helpful in case I needed work done late at night or while I'm out of town.

I assume the limit will be puny -- maybe $500-$1000. I've heard that store cards look bad on insurance scores. I have no idea if this small shop will even report the account to CRAs, but if it does, would it count as a store card and ding my score?

Thanks for any insight!

Re: Effect of store LOC?

AllZero — Mon, 15 Mar 2021 05:50:33 GMT

@Auricom wrote:
I own a small multifamily apartment building and have an account with a local locksmith who provides various services for my building when needed. They're oldschool and rather than keep my CC on file, they offered me a line of credit, which would be helpful in case I needed work done late at night or while I'm out of town.

I assume the limit will be puny -- maybe $500-$1000. I've heard that store cards look bad on insurance scores. I have no idea if this small shop will even report the account to CRAs, but if it does, would it count as a store card and ding my score?

Thanks for any insight!

@Auricom If they are really old school as you mentioned, they probably do not report to the CRAs. You may want to inquire directly with them if they do so.

Re: Effect of store LOC?

Auricom — Mon, 15 Mar 2021 06:49:57 GMT

I do know they plan to do a hard pull, not sure if they report anything other than derogs...