Store Card Question

[Anonymous]

I was thinking about adding a store card to improve my mix.

I have a short and thin credit history but I am happy with my cards and won't look to add a new bank card for years.

If my goal is to have a 760 mid-score for a mortgage in 2-3 years, do you think it would help to get a store card?

I would want to get one that I would actually use:

Macy's

Gap/Banana Rep/Old Navy

but I don't want to graduate. I only want 1 charge card TL, I don't want another revolving (Macy's Visa or Gap Visa etc) to make me look like a bigger credit glutton than I am. Can I turn down graduation offers from these retailers and not have a problem on my credit history?

Current TL:

8.5k BOA/FIA - 4 years

5k Citi Plat Select Dividend - just opened

14.8k car loan/ 9k balance - 11 months into 60 month loan

TIA!

3/25  710 EQ/ 739EX/ 742TU (post-app for Citi card but before the account reported)

Message Edited by debtisgood on 04-19-2008 12:32 PM

Message Edited by debtisgood on 04-19-2008 12:33 PM

[tonsers]

I have a Macy's store card and they have never tried to upgrade me to the VISA (4 years) - maybe because I never call them for anything. My husband called about his account once and they asked him if he was interested in the VISA, which he took - but could have just as easily said no.

I think that Macy's is a great card to have if you like to shop there. There are great coupons for the holidays (when I do most of my shopping there) and frequent sales.

[Anonymous]

Yes, I think you could benefit from another revolving charge account. Just be aware of what I call the "six-month rule": for six months before attempting to secure a mortgage, you should refrain from all credit-related activities EXCEPT:

* Paying down CC balances (this is ALWAYS a positive)
* Trying to GW or PFD your most recent charge-off or delinquent account

Now, generally getting a new credit card is not going to tank your FICO. At most, you'll take a 3-5 point hit for that inquiry. The exception to this is if you have a long, thin credit history (i.e., you've had those two cards and only those two cards for many years). In that instance, opening a new account can lop years off your average length of accounts, and cost you 20 to 30 FICO points.

[Anonymous]

I guess its just a question of projecting out a little over 2 years...

Without a store card obtained my average age would be 3.67 with 6 as my longest account versus

With a store card my average age being 3.25 years and my longest as 6.

Its probably not a huge move either way....maybe +/- 5 points?

[Anonymous]

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debtisgood wrote:

I guess its just a question of projecting out a little over 2 years...

Without a store card obtained my average age would be 3.67 with 6 as my longest account versus

With a store card my average age being 3.25 years and my longest as 6.

Its probably not a huge move either way....maybe +/- 5 points?

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The nice thing about the Macy's is that even if you get the store card and accept the Visa if it's offered in the future, the two TLs report separately.  You get one TL called MACYDSNB and another as VISADSNB.

The offspring of one of the mods rec'd an upgrade offer from Old Navy, but was able to decline it.

I think you're safe either way.  If I had to choose between the two, I'd choose Macys.  They're much more likely to give you aggressive CLIs.  I have both and my Old Navy sits at 500, while Macy's is at 2.5.

[Anonymous]

I'm a big Macy's fan for several reasons...

1. They are very likely to GW should anything ever happen. (They GW'ed 2 30's and a 60 under two years old for me over the phone).

2. They give you awesome in store deals. Even if you don't regularly buy their stuff they will give you special coupons and offers that you can use to get some great stuff dirt cheap.

3. They will CLI you every 3 months if you call and ask and from my experience you will never take a hard for it.

[Anonymous]

Does anyone have experience with getting the Macy's Visa offer? Can you decline it....does the card just show up or do they call you first? If the card shows up is it already reporting as a new account on your CR before you even activate it?

Thanks for all the input guys

[haulingthescoreup]

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@Anonymous wrote:

Does anyone have experience with getting the Macy's Visa offer? Can you decline it....does the card just show up or do they call you first? If the card shows up is it already reporting as a new account on your CR before you even activate it?

Thanks for all the input guys

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You can decline it. I think it is offered to you at checkout and on the website. If you don't accept it, and if you didn't request it yourself, it should not appear on your reports.

[Anonymous]

When I spoke to MACY's csr's about that this weekend I was advised if you didn't orginally asked to be considered for the VISA, then you have to request.  However, the rep yesterday said they perform an annual review every April. If you have had the card for a year (again April is the review month) with good pay history, they will mail an upgrade offer to you.

[Anonymous]

Just to give you guys an update - I called Macy's and the woman said they never issue the VISA right off the bat and that you can always turn it down, its not just opened as a new TL without your permission. So I decided to go ahead and pull the trigger and applied. I was accepted for a 500 CL. My new resolution is to not open a new credit account for 3+ years. Thank you all so much for your help and input. I will do a pull on my reports in 6 months and then again in a year to see how the scores are maturing.