@Anonymous wrote:
Why do you recommend weeding out the store cards instead of just letting them exist and increase AAoA?
I will paint with a broad brush, but you get the point. As always, YMMV:
Once you have activated a card, the AAoA effect is a sunk cost for 10 years. Close it or keep it, it will keep on plugging away whether closed or open, until it is excluded form your reports. By that time, I assume you have plenty of old, useful, mature tradelines still open, that are now 10 years old them selves. No need to maintian store cards for AAoA purposes.
Second, folks use store cards to pad UTI. How much is that $300 buckle card doing for you? Well, nothing really. Once you have respectable, reliable major network cards with credit limits that will grow, there is no need to maintain store cards for UTI purposes. Hopefully, as a responsible creit user, you limit the debt you carry anyway.
As your credit improves, store cards stop being as attractive from a benefits point of view. There will certainly be exceptions (eg that Amazon), but by and large the broad based benfits available from good network cards outweigh store cards. No need to maintain store cards for rewards purposes.
Although really unlikely, on manual review some lender may wonder why you have 17 store cards, from Victorias Secret to Swiss Colony and everything in between with limits well below your primary credit lines. Again, unlikely to be a problem, but why bother spending the time managing these store card lines of credit? Although rare, every open line of credit you have creates another avenue for theft or fraud. Not worth the headache for that $300 credit line.
I tend to remind people not to loose sight of the forest for the trees. Store cards go along with that. I really value my Amazon store card, so I am not against them unilaterally. But I think it is a rare case that it makes sense to have them. And a really rare case that it makes sense to have several.
"but I think I need to get some more major cards to really help improve my score."
I don't think adding any cards will improve your score. It can add to your IRQ and will definately lower your AAoA.
I started my rebuild last March. I have one bank card and 3 store cards. Two CRA's still have a Public Record on them. My scores are EX 674, EQ 683, and TU 719. My AAoA is 5 months. My UTIL is 2%. I only have 6 IRQ total.
I think you should work on getting your UTIL down. Try to PIF all cards but one. Keep that one under 9%.
Do you have any installment loans? A secure loan from a CU might be helpful for a credit mix.
@Anonymous wrote:@BallBounces wrote:
To be clear, the Amazon card I very softly recommended for your case was the synch store card. I do not think you would be approved for the Chase card and I would not apply for it. The synch card has several advantages: 1) relatively easy approval. 2) relatively easy CLI 3) potential strong initial CL 4) 5% for prime members. (I assume everyone that shops at Amazon is a prime member, and I assume everyone shops at Amazon
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The amazon store card is just about the only store card that I would ever recommend to anyone. I think it is fantastic. I think most store cards are a waste and generally recommend weeding them out as soon as folks credit profile supports it.
Absolutely I carry Amazon Prime, and they just announced that Prime members recieve a 20% discount on videogame preorders, which means HUGE savings considering most preorders at this point (with season passes) are about $100. 5% back on top of that would be great.
Why do you recommend weeding out the store cards instead of just letting them exist and increase AAoA?
There was a really long thread on here awhile back from a back room banker who talked about store cards. He said that it is looked down on when they review credit apps. So besides the low CL, it might cause you to not get approved or if so a low SL. I know that I have two but when they hit a year old I'm droping mine. They served there purpose and i've moved on from them.