Question about to many cards...

[MrsCHX]

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@joltdude wrote:

Really do think that when the ratio of store cards to majors is high it doesn't look as good on manual underwriting/review... Say a mortgage app... Some issuers have and do question folks with a bunch of store cards... Heard of Barclays doing it, as well as Chase and BOA. That said.. if you use them, and pay them off, thats all that really matters... But... and this is just a thought... the high inquiry counts to get these.. assuming they arent all shopping card tricks... and how its eating into your AAoA... that may be more relivant in the OPs scenereo 

Does the inquiry count decrease for majors? People who have 12 majors still have 12 INQs and the hit to AAoA, no?

Look, I'm not saying go out and get all the store cards -- of course not! People should honestly only app for a card (be it store or major) that will benefit them and their credit profile. I just think there are WAY too many attacks on store cards, especially with people who are rebuilding.  People are made to feel bad and in some cases put down (not saying you did this) when they discuss store card approvals. It's frustrating and a little annoying. 

MrsCHX..

My question to you... Why do you still have a Merrick card?  Does it have an AF?  Is it a Double Your Limit and if so has it doubled yet?  Just curious

-J

Yes it has doubled. As mentioned, my 4 new majors are within the last 4 weeks. Merrick is on the chopping block at it's 2 year anniversary.  As is GM BuyPower Card. Ann Taylor and Firestone may get the ax too at some point...

[Anonymous]

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@MrsCHX wrote:

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@Anonymous wrote:

12 store cards IMO is far too many.  Heck, 3 IMO is too many.  Store cards aren't a good look and could potentially hold you back from obtaining and growing real cards.  As a general rule, I would never suggest anyone have more than 1/4 of their total cards be store cards.  I would definitely look into closing a large portion of them down if I were you.

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Where on earth did this originate? 

OP I have 9 store cards. Had 12 but closed Overstock, JCrew and Kohls yesterday. They no longer served a purpose for me and the limits were low. I still have Walmart ($6k), Amazon ($5k), TJ Maxx ($3.5k), AE ($3.5k), Taget ($2k), VS ($1.5k), AnnTaylor ($750), Macy's ($600), and Pier1 ($500). 

With my 12 store cards I still managed, in the last 4 weeks, to be approved for Marvel ($1.5k), Barclay NFL ($1.3k), AMEX BCE ($2k) and lastly, with allllllll 12 "bad" store cards...AMEX Delta Gold for $10,000. 

Your profile will determine what you are eligible for with each lender. As you build your credit and add major bank cards, your profile improves. The BAD thing about adding store cards is people adding random cards just because they can get approved. Yep, I'm guilty of it too during my rebuild. You want to add cards that will benefit you be they store or major. 

RIght now, as mentioned, you need to focus on dumping Credit One. I totally missed that as well. I agree with adding a good secured card like BOA or Discover if you can. 

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Store cards simply aren't as good (useful) as major cards.  They can only be used one place.  And, since they can only be used at one place, the question then his how much money can one really spend at just one place.  Especially if they have 12 cards that are each for just 1 place.  Under manual review this does not look favorable.  If you spend $100/mo at a store on average and have a store card for them that's got a $1500-$2000 limit, what's the point in having that store card?  Using a 2% general spend card would more than suffice. 

There are constraints to every credit profile with respect to overall credit limits.  Maybe my profile can support $125k in credit limits.  If I've got $30k or $40k tied in up in store cards, it's going to potentially prevent the growth of a prime card or cards at some point... that is, a card that's far more useful overall than a handful of store cards.

[Anonymous]

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@Anonymous wrote:

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@MrsCHX wrote:

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@Anonymous wrote:

12 store cards IMO is far too many.  Heck, 3 IMO is too many.  Store cards aren't a good look and could potentially hold you back from obtaining and growing real cards.  As a general rule, I would never suggest anyone have more than 1/4 of their total cards be store cards.  I would definitely look into closing a large portion of them down if I were you.

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Where on earth did this originate? 

OP I have 9 store cards. Had 12 but closed Overstock, JCrew and Kohls yesterday. They no longer served a purpose for me and the limits were low. I still have Walmart ($6k), Amazon ($5k), TJ Maxx ($3.5k), AE ($3.5k), Taget ($2k), VS ($1.5k), AnnTaylor ($750), Macy's ($600), and Pier1 ($500). 

With my 12 store cards I still managed, in the last 4 weeks, to be approved for Marvel ($1.5k), Barclay NFL ($1.3k), AMEX BCE ($2k) and lastly, with allllllll 12 "bad" store cards...AMEX Delta Gold for $10,000. 

Your profile will determine what you are eligible for with each lender. As you build your credit and add major bank cards, your profile improves. The BAD thing about adding store cards is people adding random cards just because they can get approved. Yep, I'm guilty of it too during my rebuild. You want to add cards that will benefit you be they store or major. 

RIght now, as mentioned, you need to focus on dumping Credit One. I totally missed that as well. I agree with adding a good secured card like BOA or Discover if you can. 

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Store cards simply aren't as good (useful) as major cards.  They can only be used one place.  And, since they can only be used at one place, the question then his how much money can one really spend at just one place.  Especially if they have 12 cards that are each for just 1 place.  Under manual review this does not look favorable.  If you spend $100/mo at a store on average and have a store card for them that's got a $1500-$2000 limit, what's the point in having that store card?  Using a 2% general spend card would more than suffice. 

There are constraints to every credit profile with respect to overall credit limits.  Maybe my profile can support $125k in credit limits.  If I've got $30k or $40k tied in up in store cards, it's going to potentially prevent the growth of a prime card or cards at some point... that is, a card that's far more useful overall than a handful of store cards.

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http://ficoforums.myfico.com/t5/General-Credit-Topics/Credit-Score-amp-Car-Insurance/td-p/4806481

Reason:  Post #2.

The insurance posters over at MyFico reference store cards weighing unfavorably during quoting.  Possible reason to trim some store card baggage.

...unless you're not looking for insurance anytime soon.  Then by all means, no sweat for your deck.

[MrsCHX]

So still a lot of "maybe random thing A happens or maybe random thing B happens..."

MAYBE you'll have to undergo manual review for credit.
MAYBE you'll max out on overall credit (closing cards is an option)
MAYBE it's an insurance issue (personally I've had two different quotes in the last year that came back pretty decent with no references to my store cards. I'm not saying it's not a thing just as with everything else, YMMV. Your entire profile will determine your credit worthiness)
MAYBE...

Yes, there *is* benefit to having a card to one place if you shop there frequently. I saved more dollars in 2016 using my RedCard than I earned on my rewards card. Some people don't want to chase bonus categories so let's say you've got a solid card with either 1.5% or 2% cash back on everything. Still doesn't touch my 5% I get at a target on everything I buy. And I'm there 4-6 times per week. Sometimes more than once a day :-p Food, makeup, household goods, personal care, clothes, shoes, electronics...we buy a lot from Target. It's an excellent choice for me to have in my wallet.

I can use my AMEX or QS or...but I ain't getting 5%.

Again, it's better to explain pros and cons to people and hammer home the point to not grab every store card that's offered. But the belabor the point that they're "useless" is just silly. And again, ESPECIALLY with rebuilders.

I'm not sure why people who hate store cards are overwhelmingly drawn to these types of threads...By all means tell someone not to get 12 Comenity SCT cards...but the comments about AAoA (oh that's different for store vs major?) or inquiries (again, different? No.) are so tired.

[Thomas_Thumb]

Best to keep # of store cards low. The credit world is much bigger than Fico.

Although Fico does not look at average CL per card nor how many store cards/retail cards one has, credit based insurance scores (CBIS) absolutely look at those factors ... and they weigh # of new accounts and how new those accounts are more heavily than either Fico or VantageScore models.

CBIS scores are automated - not a manual review. Those that drive some type of motorized vehicle are required to have some type of "Auto" insurance and home owners/renters should have property insurance. A low average CL coupled with a a few new accounts and high percentage of retail/score cards can certainly drive down CBIS to a level that could result in a doubling of insurance premiums.

A prudent strategy is to shed non value add store cards, avoid applying for more store cards and focus on "bank cards" - AMEX/Visa/Mastercard/Discover where you can get generous CLIs over time with just an SP. Then keep those cards to grow your AAoA. [side note - As I recall, LexisNexis CBIS counts store/retail accounts as a negative even if the account is closed as long as it is on your credit report. BTW - LN pulls from Equifax.]

[Anonymous]

What cards are they are their limits?  How old are they?  What is FICO score?

We can help get you situated on right path but need more info.

In general start with the axing of small limit store cards.  Then if you have say 3-4 Synchrony cards you would want to keep your favorites and get the limits raised high.  Then in 6 months use those limits as leverage to get you in on decent starting limits with prime lenders.

[K-in-Boston]

The OP has disappeared it seems.

As for store cards, they can certainly serve several purposes.  Underwriting is often much more lenient for those just starting or rebuilding credit, so they are a good way of demonstrating that you can handle credit when it is extended to you.  For me, I do a lot of shopping at Amazon and home improvement stores (hence Lowe's card) and every few years make a large purchase at Best Buy - the instant 5% back as a statement credit (6% back in rewards on BB) saves me much more than a 2% major would, plus there is always an option to take 0% for 6-24 months, so I can apply that money to paying down higher interest debt first while taking my time to pay off a purchase I would normally just pay in full.  The Target card is one of my oldest and it gets me an instant 5% off when I shop there.  The Kohl's card also saves me an additional 10% on those months where the wife only gets a 20% off coupon and I get the 30%.  

They certainly all serve a purpose for me, at least, and I have never received a denial stating that I had too many store cards - and I just closed another 4 or 5 in the past year that I was no longer using.  I can maybe see the insurance aspect of it, but fortunately live in one of the 3 states (CA, HI, MA) that prohibit credit scores from being used in insurance pricing.  I would certainly not suggest getting a ton of low-limit stores cards that you'll never use just because you could get approved, though.

[joltdude]

Seen a few of these drive-by postings lately... Sometimes I think its the poster doesn't want to necessarily face reality... They post it.. see a few responses and they want Alternative Facts.....and i think they are repeated posts in hopes that the outcome changes..... Sad because I think in general everyone here wants to help them out...