Store cards- the argument for closing

[pinkandgrey]

I generally avoid store cards unless it's usable outside the store (i.e Best Buy Visa).

[coreysw12]

I don't like having bunches of store cards for places I never shop at or that don't offer good incentives. But there are a few I'd like to get, because they offer 5% discounts or cashback at places I regularly shop anyways:

• REI
• Lowes
• Amazon

Besides that, I'd rather avoid the hassle. It's usually not worth the effort (or money) to use the card often enough to keep them from closing it.

[tcbofade]

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@K-in-Boston wrote:

If growing up means getting fewer rewards at stores I shop at anyway, then I don't wanna grow up.  (And since I'm paraphrasing a toy store commercial from the 80s, I'm probably grown up anyway.)

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Doubtful. 

DW and I still have a few store cards.... we keep Target for the 5% discount, NFM for the zero percent financing, and we both have Lowes cards for the discount OR the financing.... depending on the purchase.

If they work for you, keep them.  If they don't, don't. 

[jetsfan2013]

Can store branded cards with low CL impact other larger issuers from extended larger CLI?

[K-in-Boston]

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@jetsfan2013 wrote:

Can store branded cards with low CL impact other larger issuers from extended larger CLI?

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"Low limit hell" is a common phrase thrown around.  On the surface, it often appears that low limits beget more low limits, but those limits are often determined by one's credit profile including income and recent credit-seeking, so correlation does not necessarily equal causation.

Even with average revolving credit lines around $25,000 or so, I've had approvals as low as $2500 (Citi Premier) in the past few years.  Even though I have a card that I purposely decreased to only $500, I've had a number of approvals with starting lines in the $20-40k range.

So yes, if one's credit profile has a number of new accounts mostly for small limit store cards, it can affect starting lines depending on the lender.  But the same can also be said about a number of new accounts with much larger starting lines.

An important distinction was made earlier in the thread.  Having a bunch of low dollar store cards one never uses because those are accounts they could be approved for is seldom a good idea.  But having a handful of store cards if one regularly shops at the retailer and makes use of discounts or promotional financing is just good financial sense.

[Anonymous]

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@jetsfan2013 wrote:

Can store branded cards with low CL impact other larger issuers from extended larger CLI?

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I feel like there's just as many DPs of someone with low limits getting big limits and the other way around

Bigger factors would be how often you apply/attain new credit, income, deposit activity (with the credit-issuing bank), etc.

[SunriseEarth]

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@jetsfan2013 wrote:

A friend told me that he "outgrew" retail store cards and closed all of them (he had 4). He now exclusively has Amex and Citi (Double Cash, Gold and Hilton Aspire).  What is everyone's thoughts around saying no to store branded retail cards?

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Some people would say they've outgrown Citi.  Honestly, it depends on what works for your profile and your needs.   Many store cards have worthy perks, such as increased rewards or special financing, that are desirable at any credit level.  

[sxa001]

I don't believe in closing cards on my own anyways that don't have an AF. If they get closed for non use so be it.  I only have two store cards.  I did get lucky with the Dillard's AMEX as I can use it outside of Dillard's but the limit is really terrible (I never tried to increase it).  I will likely eventually be downgraded to their regular tier card since I decided to stop being a shop-a-holic*.  

My Blue Nile will likely eventually be closed, since I have received CLIs from other cards I am not worried about losing the 9K in credit when that happens.  

* To give an example of my Dillard's addiction, one afternoon I was with a friend of mine and he wanted me to swing by the Best Buy, I naturally ended up in the Dillard's parking lot and honestly didn't even think about it until he reminded me we were going to the Best Buy.  

[AverageJoesCredit]

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@Anonymous wrote:

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@jetsfan2013 wrote:

Can store branded cards with low CL impact other larger issuers from extended larger CLI?

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I feel like there's just as many DPs of someone with low limits getting big limits and the other way around

Bigger factors would be how often you apply/attain new credit, income, deposit activity (with the credit-issuing bank), etc.

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This. I dont think just because one has 4 $500 cards they wont get a $10k card elsewhere. Same as high limits dont gaurentee high limits. Jusr ask those HIErs about that first limit with Navy lol. We are outliers here on myFico as we arent afraid to get 30 cards whereas Joe Q Public usually gets 3 , not knowing its in their power to be able to get 30 lol

[tcbofade]

...or 38 

Our Home Depot card got CLD'd to a $500 credit limit. 

I have a $36k NFCU Platinum credit limit.

...and 36 in between.