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Store cards- the argument for closing

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Community Leader
Mega Contributor

Re: Store cards- the argument for closing


@tcbofade wrote:

...or 38  Smiley Embarassed

 

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

 

I have a $36k NFCU Platinum credit limit.

 

...and 36 in between. 


at least HD didnt close itSmiley Wink.  Question Taco, how is your CA on your 36k Plat? Just wondering if its capped or just depends on your limit. Thanks.

 

Fyi, my $25k CR has a $7500 CA 

Message 21 of 29
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Super Contributor

Re: Store cards- the argument for closing

I've got three NFCU credit card accounts.  CA is exactly 30% on each of them.

 

Cash Rewards  $3,450 CA on $11,500 limit.

Platinum $10,800 CA on $36,000 limit.

Flagship $5,700 CA on $19,000 limit.

 

 



09/25/20 Mortgage scores: EX2 712, EQ5 710, TU4 no idea.
10/01/20 Fico 8: EX 709, EQ 722, TU 737.
10/03/20 Fico 9: EX 708, EQ 700, TU no idea...

Zero percent financing is where the devil lives...
Sitting in the garden behaving myself. #noinqs2020
Message 22 of 29
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Valued Contributor

Re: Store cards- the argument for closing

About three years ago I decided to close all my unused and infrequently used credit cards.  I closed three general purpose cards from PenFed, Citibank, and Amex.  More importantly, I got rid of all six of my store and gas cards.  I have no regrets.

Daily Carry: PenFed Power Cash • NFCU Flagship • NFCU More Rewards • Chase Freedom Unlimited
Sock Drawer: PenFed Promise • NFCU cashRewards • Chase Freedom • Chase United MileagePlus • UNFCU Azure
Message 23 of 29
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Super Contributor

Re: Store cards- the argument for closing

@UpperNwGuy   I'm not changing anything right now.

 

I'm hoping to refinance a mortgage early next year, then I'll start trimming the worthless credit cards...



09/25/20 Mortgage scores: EX2 712, EQ5 710, TU4 no idea.
10/01/20 Fico 8: EX 709, EQ 722, TU 737.
10/03/20 Fico 9: EX 708, EQ 700, TU no idea...

Zero percent financing is where the devil lives...
Sitting in the garden behaving myself. #noinqs2020
Message 24 of 29
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Valued Contributor

Re: Store cards- the argument for closing


@tcbofade wrote:

@UpperNwGuy   I'm not changing anything right now.

 

I'm hoping to refinance a mortgage early next year, then I'll start trimming the worthless credit cards...


Glad to see you call them "worthless".  Many members of this forum keep even the worthless cards because of "padding."

Daily Carry: PenFed Power Cash • NFCU Flagship • NFCU More Rewards • Chase Freedom Unlimited
Sock Drawer: PenFed Promise • NFCU cashRewards • Chase Freedom • Chase United MileagePlus • UNFCU Azure
Message 25 of 29
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Moderator

Re: Store cards- the argument for closing


@UpperNwGuy wrote:

@tcbofade wrote:

@UpperNwGuy   I'm not changing anything right now.

 

I'm hoping to refinance a mortgage early next year, then I'll start trimming the worthless credit cards...


Glad to see you call them "worthless".  Many members of this forum keep even the worthless cards because of "padding."


 

Good for them. I don't see those members judging your choices, so perhaps returning a favor is in order.

A lot of people keep a bit extra on the utilization side because scoring system is flawed, and/or because they remember what it's like when things get bad.

Too bad you already forgot because your credit (and choices that go with it), weren't always what what they are now. 

 

You do not have to support those choices, but you shouldn't go out of your way to vilify and ridicule, and so far, it's happened in every thread where store cards are mentioned. Every thread. 

 

 

Message 26 of 29
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Established Contributor

Re: Store cards- the argument for closing


@coreysw12 wrote:

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

In the 2 days since I posted that, I went ahead and got the REI and Amazon store card Smiley Very Happy

    Total Loan Balance: $28k / $70k

    Total SL: $41.2k
Goal cards:



United 1K - 675,000 lifetime flight miles    |    Chase 6/24
Message 27 of 29
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Super Contributor

Re: Store cards- the argument for closing


@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?


My personal preference is to avoid them. I don't like being induced to spend with a particular company.


Total revolving limits 653000 (575000 reporting)

Message 28 of 29
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Established Contributor

Re: Store cards- the argument for closing


@SouthJamaica wrote:

@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?


My personal preference is to avoid them. I don't like being induced to spend with a particular company.


I remember back when I worked at RadioShack (anyone remember that place?) we were required to try to get customers into a RadioShack store card (and of course, paid a commission if we succeeded). I always felt really bad because the people who were mostly applying for it were people I knew didn't need it, and in a lot of cases they didn't seem like people that would use it responsibly. I still have the opinion that one shouldn't open a store card just because the clerk hands them a pamphlet and calls you crazy if you don't get it. Probably 90% of the store cards in people's wallets are ones they never should've gotten, but got talked into. But like I said earlier, in the right hands they can be an excellent tool. Particularly if it's for a store you're already shopping at regularly anyways, or even if it's only for a 1-time very large purchase, if the incentives are worth it. They can also be a decent tool for someone getting started with credit - back when I was 18, I remember the JC Penny card was all the rage because pretty much anyone could get it, and it was a great credit builder even if the card itself was worthless.

 

So the bottom line is, everyone should examine their habits and needs and determine which store cards (if any) might be right for them, and don't let anyone talk you into any cards that you weren't already planning to get anyways.

 

In my case, I already spend ungodly sums of money at Amazon and REI anyways, and a store card with them isn't going to increase that spending any, it just rewards me for the spending I'd be doing anyways. There's no worry about needing to keep activity on it, since rarely does even a week go by where I'm not shopping at one of those two places. So those cards are great for me. But a Zales card, or a shopping mall store card, for example, would be terrible for me since I hardly ever shop either place, and definitely don't want to feel like I have to just because I have the card. But for someone who regularly shops at Zales, or Victoria's Secret, or whatever, might find good value in those cards.

    Total Loan Balance: $28k / $70k

    Total SL: $41.2k
Goal cards:



United 1K - 675,000 lifetime flight miles    |    Chase 6/24
Message 29 of 29
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