topic Re: Credit Mix Question... in General Credit Topics

Credit Mix Question...

Swapmeet — Sat, 23 Aug 2014 21:20:34 GMT

I was wondering if cards like the SG Visa and the Wal Mart MC still count as store cards, even though they are on a major network. I never upgraded my wally card because I didn't want to lose my only store card (if the SG visa doesn't count). I know that it doesn't matter much in the grand scheme of things, but I am curious.

Re: Credit Mix Question...

s_haliz — Sat, 23 Aug 2014 21:37:54 GMT

Normally credit cards falls into following categories:

1. Pure cards issued directly by issuer (like AMEX, Discover);
2. Bank issued cards (like Chase Freedom VISA, XYZ Master Card, etc.);
3. Pure Store Cards that can only be used at sores (like Mattress Firm...It won't have MasterCard or Visa associated with them)

4. Store Cards that can also be used anywhere where the accept it (like TJX Master card that can used both at TJX and elsewhere where MasterCard gets accpeted);
5. Co-branded (like Marriott Rewards by Chase Visa Signature);

In my opoinion category 3 are really store cards. I could be wrong. Others can chime in.

Re: Credit Mix Question...

myjourney — Sun, 24 Aug 2014 06:30:24 GMT

Weather its a CC or store card both are considered revolving accounts in Fico eyes

Re: Credit Mix Question...

Swapmeet — Sun, 24 Aug 2014 18:54:27 GMT

@myjourney wrote:
Weather its a CC or store card both are considered revolving accounts in Fico eyes

So you are saying that there is no distinction between store cards and major credit cards as far as Fico is concerned?

Re: Credit Mix Question...

lg8302ch — Sun, 24 Aug 2014 19:07:39 GMT

@Swapmeet wrote:
@myjourney wrote:
Weather its a CC or store card both are considered revolving accounts in Fico eyes
So you are saying that there is no distinction between store cards and major credit cards as far as Fico is concerned?

This would be my guess because I never had a single store card and could cross the 800 barrier on Fico if I do not add new accounts ...really doubt my score would be any different if I had a store card instead of only major credit cards

Re: Credit Mix Question...

Closingracer99 — Sun, 24 Aug 2014 19:18:20 GMT

@Swapmeet wrote:
@myjourney wrote:
Weather its a CC or store card both are considered revolving accounts in Fico eyes
So you are saying that there is no distinction between store cards and major credit cards as far as Fico is concerned?

There isn't Nothing says "store card" on my reports. The only differences I see is they are called "charge cards" when they really arent

Re: Credit Mix Question...

H14 — Mon, 25 Aug 2014 02:00:25 GMT

Edit: Nevermind, was wrong.

Re: Credit Mix Question...

Closingracer99 — Sun, 24 Aug 2014 19:22:36 GMT

@H14 wrote:
@Closingracer99 wrote:
@Swapmeet wrote:
@myjourney wrote:
Weather its a CC or store card both are considered revolving accounts in Fico eyes
So you are saying that there is no distinction between store cards and major credit cards as far as Fico is concerned?

There isn't Nothing says "store card" on my reports. The only differences I see is they are called "charge cards" when they really arent
They should be listed as Retail accounts on your report.

They don't and isn't a "difference" between Store cards and Credit cards as far as CR's matter

Re: Credit Mix Question...

myjourney — Sun, 24 Aug 2014 19:29:43 GMT

@Swapmeet wrote:
@myjourney wrote:
Weather its a CC or store card both are considered revolving accounts in Fico eyes
So you are saying that there is no distinction between store cards and major credit cards as far as Fico is concerned?

Precisely there's no difference in a store card and a credit card in Fico eyes and I've never seen one listed as retail....all I've ever seen them listed as a charge account which is the same as a CC

Re: Credit Mix Question...

Swapmeet — Sun, 24 Aug 2014 20:03:43 GMT

@myjourney wrote:
@Swapmeet wrote:
@myjourney wrote:
Weather its a CC or store card both are considered revolving accounts in Fico eyes
So you are saying that there is no distinction between store cards and major credit cards as far as Fico is concerned?

Precisely there's no difference in a store card and a credit card in Fico eyes and I've never seen one listed as retail....all I've ever seen them listed as a charge account which is the same as a CC

Interesting..... I guess keeping my wal mart card as my only true store card is worthless then.....

Re: Credit Mix Question...

Anonymous — Sun, 24 Aug 2014 20:33:58 GMT

@myjourney wrote:
@Swapmeet wrote:
@myjourney wrote:
Weather its a CC or store card both are considered revolving accounts in Fico eyes
So you are saying that there is no distinction between store cards and major credit cards as far as Fico is concerned?

Precisely there's no difference in a store card and a credit card in Fico eyes and I've never seen one listed as retail....all I've ever seen them listed as a charge account which is the same as a CC

Well, there is a slight difference, or at least was in 2008. I've posted this a few times, from an interview with FICO product manager: http://www.bankrate.com/finance/credit-cards/closing-credit-card-dings-credit-score-1.aspx

Here's another misconception for you: Does it impact your score any less to close a department-store card versus a bank credit card?

No. In terms of the credit card utilization, it does not impact. My only hesitation (is) in the long run there could be a difference, and that's going back to those five areas (which make up your credit score). The credit mix (is) like 10 percent -- and that looks at the proportion of different kinds of credit. The big categories would be credit cards and mortgages and auto loans. But then within credit cards, it breaks it down into whether you have bank cards or department-store cards. If you close off all your bank cards and they get deleted from your report in a few years, and all you're left with is department-store cards, that can hurt your score a little bit. Down the road that can hurt you, but that's a very minimally weighted part of the scoring. For most people, it's not going to matter a whole lot.

Re: Credit Mix Question...

Anonymous — Sun, 24 Aug 2014 20:35:24 GMT

And the follow on:

But if the reverse was true and you closed all your store cards, and just had regular bank credit cards, would the impact be the same?

That would hurt you less, potentially, because the bank cards count for more than the department-store cards, all things being equal. If you have to be without one, you're better off being without the department-store cards.

Re: Credit Mix Question...

Swapmeet — Sun, 24 Aug 2014 21:48:33 GMT

@Anonymous wrote:
And the follow on:

But if the reverse was true and you closed all your store cards, and just had regular bank credit cards, would the impact be the same?

That would hurt you less, potentially, because the bank cards count for more than the department-store cards, all things being equal. If you have to be without one, you're better off being without the department-store cards.

Thanks for the great information, as per the usual with you ltr. I am not considering closing the wal mart card--just debating on whether to accept an upgrade to the mc version, thereby eliminating store-only cards from my portfolio. At this point in my credit journey, whether my 15k of credit on that card can be used only at wal mart, or everywhere, just does not matter to me in the slightest amount. So it is really only a matter of if I can get even a one-point-gain if I keep it as a store-only card.

Re: Credit Mix Question...

myjourney — Sun, 24 Aug 2014 22:31:50 GMT

http://www.myfico.com/CreditEducation/Types-of-Credit.aspx

In the 10% of Fico score calculations are the types of credit categories @10% weight

That is listed as 2 types of credit but if you think about it.... those 2 categories can be broken into subsections within itself

Revolving and installment

Revolving

1) CC's

2) store cards

Installments

Auto

Home

Loans

Etc

The score will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.

Re: Credit Mix Question...

Swapmeet — Sun, 24 Aug 2014 22:50:43 GMT

@myjourney wrote:
http://www.myfico.com/CreditEducation/Types-of-Credit.aspx

@Anonymous the 10% of Fico score calculations are the types of credit categories @Anonymous% weight
That is listed as 2 types of credit but if you think about it.... those 2 categories can be broken into subsections within itself
Revolving and installment

Revolving
1) CC's
2) store cards

Installments
Auto
Home
Loans
SL
Etc

The score will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.

What's the upshot on this? I don't follow.

Re: Credit Mix Question...

myjourney — Sun, 24 Aug 2014 23:02:15 GMT

No upside no downside some in this thread seem to think that store cards are different than CC's when it come to Fico scoring and for those that follow along I posted this so newbies will know

A) what goes into the scoring process

B) education

Lol

Your choices in your case are simple you can do whatever you wish with the cards you listed be it upgrade close or leave as is but it will be scored the same....

FYI about the Walmart upgrade tho which is why I never took it ....It will result in a new TL and I don't beleive its worth it in my case.....IMHO

Re: Credit Mix Question...

Anonymous — Sun, 24 Aug 2014 23:08:15 GMT

@myjourney wrote:
No upside no downside some in this thread seem to think that store cards are different than CC's when it come to Fico scoring and for those that follow along I posted this so newbies will know
A) what goes into the scoring process
B) education
Lol

Your choices in your case are simple you can do whatever you wish with the cards you listed be it upgrade close or leave as is but it will be scored the same....
FYI about the Walmart upgrade tho which is why I never took it ....It will result in a new TL and I don't beleive its worth it in my case.....IMHO

OK, now I am more confused as to your point!

Perhaps the confusion is as to what "difference" means. So I agree that for FICO score, the important parts of a card, e.g. utilization, payment history, age etc, are treated the same whether it is a store card or a bank card

But... when aggregated, you do have a slight score boost if you have credit cards of both types, and (from the second quote I posted), if you have just one type, it's a little better if they are bank cards than store cards.

So, scorewise, there IS a difference, just not on an individual card basis.

Re: Credit Mix Question...

Swapmeet — Sun, 24 Aug 2014 23:10:27 GMT

@myjourney wrote:
No upside no downside some in this thread seem to think that store cards are different than CC's when it come to Fico scoring and for those that follow along I posted this so newbies will know
A) what goes into the scoring process
B) education
Lol

Your choices in your case are simple you can do whatever you wish with the cards you listed be it upgrade close or leave as is but it will be scored the same....
FYI about the Walmart upgrade tho which is why I never took it ....It will result in a new TL and I don't beleive its worth it in my case.....IMHO

This is pretty much true in my case too, though a new tl wouldn't matter to me much either. Still, it isn't even worth the phone call to me....lol. So it will stay my sole store-only card

Re: Credit Mix Question...

myjourney — Sun, 24 Aug 2014 23:12:58 GMT

@Anonymous wrote:
@myjourney wrote:
No upside no downside some in this thread seem to think that store cards are different than CC's when it come to Fico scoring and for those that follow along I posted this so newbies will know
A) what goes into the scoring process
B) education
Lol

Your choices in your case are simple you can do whatever you wish with the cards you listed be it upgrade close or leave as is but it will be scored the same....
FYI about the Walmart upgrade tho which is why I never took it ....It will result in a new TL and I don't beleive its worth it in my case.....IMHO
OK, now I am more confused as to your point!

Perhaps the confusion is as to what "difference" means. So I agree that for FICO score, the important parts of a card, e.g. utilization, payment history, age etc, are treated the same whether it is a store card or a bank card

But... when aggregated, you do have a slight score boost if you have credit cards of both types, and (from the second quote I posted), if you have just one type, it's a little better if they are bank cards than store cards.

So, scorewise, there IS a difference, just not on an individual card basis.

Don't get lost here Ltl

I agree and no where is it stated by Fico themselves but I also think a person with all bank card vs a person with all store cards profile is stronger.....but still doesn't change the fact there both scored as revolving

You follow me?

Re: Credit Mix Question...

Swapmeet — Sun, 24 Aug 2014 23:16:15 GMT

@myjourney wrote:
@Anonymous wrote:
@myjourney wrote:
No upside no downside some in this thread seem to think that store cards are different than CC's when it come to Fico scoring and for those that follow along I posted this so newbies will know
A) what goes into the scoring process
B) education
Lol

Your choices in your case are simple you can do whatever you wish with the cards you listed be it upgrade close or leave as is but it will be scored the same....
FYI about the Walmart upgrade tho which is why I never took it ....It will result in a new TL and I don't beleive its worth it in my case.....IMHO
OK, now I am more confused as to your point!

Perhaps the confusion is as to what "difference" means. So I agree that for FICO score, the important parts of a card, e.g. utilization, payment history, age etc, are treated the same whether it is a store card or a bank card

But... when aggregated, you do have a slight score boost if you have credit cards of both types, and (from the second quote I posted), if you have just one type, it's a little better if they are bank cards than store cards.

So, scorewise, there IS a difference, just not on an individual card basis.
Don't get lost here Ltl
I agree and no where is it stated by Fico themselves but I also think a person with all bank card vs a person with all store cards profile is stronger.....but still doesn't change the fact there both scored as revolving

You follow me?

Ltl is disagreeing with you. He seems to be saying that a mix of store/major cc will give my score a boost, when compared with all of one or the the other.