Do you really need store cards?

[longtimelurker]

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@DrJim wrote:

No.  You can see my scores and I don't have any store cards.  I don't need them, and I don't want them.  At one time they were helpful because there were some stores (like Macy's) that would not accept any other cards - debit cards have changed that forever, so now they accept the cards.

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But since your scores aren't 850,850,850 that doesn't really prove anything!   (I also don't have and don't want store cards, but there is apparently a tiny score ding for not having them).

[USF813]

If you have an opportunity to take advantage of special financing offers (Best Buy), then I'd say having one or two store cards is beneficial. I have two Visa cards and a Best Buy card plus a mortgage and my scores hover between the high 600s and the mid 700s. I would only advocate a store card if you will find value in it and you pay in full each month, or, use 0% financing offers. Other than that, I can't think of a good reason to have one.

[phillyguy12]

Store cards dont really matter and if you believe the score simulator on here they actually hurt u as they are seen among the lowest quality of credit. Which kinda makes sense as the aprs are generally 20%+. I say get them if to your advantage I have amazon store card and pretty much only use it for financing promos and never pay interest I have khols as well but don't use it much but their promos are generally good

[Crashem]

Personally, I think having or not having store cards don't make any difference FICO score wise.  I do believe that FICO score gives you credit for having a mix of credit, but it is referring to things like mortgages, auto loans, revolving credit, etc.  We know this last fact to be true.

Why do I think store cards isn't figured in?  Just look at your credit report.  How does FICO score calculation recognize a store card?  Store card isn't a designation in your credit report.  Often, store cards are issued by banks so how would you know it is store account?  We know for a fact that similar accounts counts similarly no matter who the lender is.  1st Premier account means as much FICO wise as an identical AMEX/Chase account.  Personally, I believe a lot of this is old info.  In the past, store accounts were essentially charge cards where the balance was due at end of the month so it would register on your credit report under terms as 1 month.  Credit cards on the other hand registered as revolving.  But today, store cards are pretty much all revolving terms and show up as revolving on credit report.  As such, I don't FICO score wise, it is treated any differently from any other credit card.

[mikey78]

my gap and express cards are reported as charge cards
and i was shocked that Express acct is still open considering that i haven't used them for a year
since they are open acct i charge them to have em report my balances and etc...
EXpress are EXPENSIVE!!!
i use gap more because they are Cheap

[Irisa]

Found this in the "Learn about Scores" section of this site:

Types of credit in use Credit mix determines 10% of my FICO Score

The FICO® Score will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It's not necessary to have one of each, and it's not a good idea to open credit accounts you don’t intend to use.

The credit mix usually won’t be a key factor in determining your FICO Score—but it will be more important if your credit report does not have a lot of other information on which to base a score.