Department Store Cards

[Anonymous]

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?

[Anonymous]

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

[Anonymous]

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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.

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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

[Anonymous]

LOL!! all store cards have ridiculous rates.

[Anonymous]

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Brammy wrote:

LOL!! all store cards have ridiculous rates.

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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.

[Anonymous]

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ddd wrote:

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Brammy wrote:

LOL!! all store cards have ridiculous rates.

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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.

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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.

[Anonymous]

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cheddar wrote:

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ddd wrote:

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Brammy wrote:

LOL!! all store cards have ridiculous rates.

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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.

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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.

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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?

[Anonymous]

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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?

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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.

[haulingthescoreup]

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!

[Anonymous]

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."