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Tell Me About Store Cards

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Established Contributor

Tell Me About Store Cards

I have one store card (TJ Maxx). I love TJ Maxx - where else can I get All-Clad cookware, Theory/Elie Tahari clothing, and Peter Reed bedding at over 50% off? But I noticed that some of my reports separate store cards from other credit cards. How do store cards affect how lenders view me?

Message 1 of 14
13 REPLIES 13
Super Contributor

Re: Tell Me About Store Cards

Lenders don't really seem to care too much if you have a store card here and there. It's really just bad for your insurance scores and otherwise gets treated as any other credit card. 

The asterisk to put in here is that lenders and their algorithms will look at a bunch of low limit store cards and use them when making average credit limit assessments so if you have a bunch of small store card limits, it could seriously cause problems trying to get higher SLs. 



01/2019:
12/2019:

Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 2 of 14
Community Leader
Mega Contributor

Re: Tell Me About Store Cards

"They're The Devil!" - Mamma says....Bobby B😈
#ChaseCreditCardHobby Enthusiast
2022
!
Message 3 of 14
Established Contributor

Re: Tell Me About Store Cards


@Saeren wrote:

Lenders don't really seem to care too much if you have a store card here and there. It's really just bad for your insurance scores and otherwise gets treated as any other credit card. 

The asterisk to put in here is that lenders and their algorithms will look at a bunch of low limit store cards and use them when making average credit limit assessments so if you have a bunch of small store card limits, it could seriously cause problems trying to get higher SLs. 


OK, so one or two in an otherwise broad and diversified portfolio won't hurt with lenders. Tell me more about how they affect insurance scores. Does having even one hurt? Which types of insurance are affected? Where can I learn more?

Message 4 of 14
Super Contributor

Re: Tell Me About Store Cards


@VanderSnoot wrote:

@Saeren wrote:

Lenders don't really seem to care too much if you have a store card here and there. It's really just bad for your insurance scores and otherwise gets treated as any other credit card. 

The asterisk to put in here is that lenders and their algorithms will look at a bunch of low limit store cards and use them when making average credit limit assessments so if you have a bunch of small store card limits, it could seriously cause problems trying to get higher SLs. 


OK, so one or two in an otherwise broad and diversified portfolio won't hurt with lenders. Tell me more about how they affect insurance scores. Does having even one hurt? Which types of insurance are affected? Where can I learn more?


https://ficoforums.myfico.com/t5/forums/searchpage/tab/message?q=insurance%20scores&collapse_discuss...

 

EDIT TO ADD:

https://ficoforums.myfico.com/t5/General-Credit-Topics/quot-Credit-based-insurance-score-quot/m-p/47...

Message 5 of 14
Super Contributor

Re: Tell Me About Store Cards


@VanderSnoot wrote:

@Saeren wrote:

Lenders don't really seem to care too much if you have a store card here and there. It's really just bad for your insurance scores and otherwise gets treated as any other credit card. 

The asterisk to put in here is that lenders and their algorithms will look at a bunch of low limit store cards and use them when making average credit limit assessments so if you have a bunch of small store card limits, it could seriously cause problems trying to get higher SLs. 


OK, so one or two in an otherwise broad and diversified portfolio won't hurt with lenders. Tell me more about how they affect insurance scores. Does having even one hurt? Which types of insurance are affected? Where can I learn more?


Looks like @M_Smart007 has you covered. I actually haven't done a lot of research into the insurance scores but apparently store cards can have a pretty big impact. 



01/2019:
12/2019:

Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 6 of 14
Super Contributor

Re: Tell Me About Store Cards


@Saeren wrote:

@VanderSnoot wrote:

@Saeren wrote:

Lenders don't really seem to care too much if you have a store card here and there. It's really just bad for your insurance scores and otherwise gets treated as any other credit card. 

The asterisk to put in here is that lenders and their algorithms will look at a bunch of low limit store cards and use them when making average credit limit assessments so if you have a bunch of small store card limits, it could seriously cause problems trying to get higher SLs. 


OK, so one or two in an otherwise broad and diversified portfolio won't hurt with lenders. Tell me more about how they affect insurance scores. Does having even one hurt? Which types of insurance are affected? Where can I learn more?


Looks like @M_Smart007 has you covered. I actually haven't done a lot of research into the insurance scores but apparently store cards can have a pretty big impact. 


when i read a while back, i was kind of Shocked about Store Cards and CBIS Scoring.

 

A Great Post, Thanks to CGID ( I miss Him, a True wealth of Knowledge)


 @CreditGuyInDixie

‎03-18-2019 08:02 AM
Re: Too Many Credit Cards

Postscript:

 

As far as pure scoring advantages, there are a few caveats worth considering. These are fine points, but worth considering either for fun or to make the absolute best decision:

 

* The mere presence of store cards does not harm your FICO scoes, but it does harm the scores used by the insurance industry. Is the harm enough to warrant closing store cards you really love? Probably not. But it is strong enough to warrant the closure of store cards that are not amoung your oldest and which you could just as easily use major cards to buy things at.

 

* The mere presence of auto-related revolving accounts (Pep Boys, Firestone, etc.) does not harm FICO scores but does harm your insurance scores. I'd close those unless you have a compelling reason to keep them open.

 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Too-Many-Credit-Cards/m-p/5542468#M15268...

Message 7 of 14
Established Contributor

Re: Tell Me About Store Cards


@M_Smart007 wrote:


https://ficoforums.myfico.com/t5/forums/searchpage/tab/message?q=insurance%20scores&collapse_discuss...

 

EDIT TO ADD:

https://ficoforums.myfico.com/t5/General-Credit-Topics/quot-Credit-based-insurance-score-quot/m-p/47...


Yikes, that will chill any credit churner's heart. For TU scoring: no apps in 25 months, no new accounts in 42 months, avg TL >/= $9k. Do we have any more info on Lexis Nexis? 

 

Also found this article on CR impact on auto insurance pricing by state and insurer:

https://wallethub.com/edu/ci/car-insurance-by-credit-score-report/4343/

 

PS - I may have been drinking earlier so feel free to tell me I missed the obvious.

Message 8 of 14
Super Contributor

Re: Tell Me About Store Cards


@VanderSnoot wrote:

@M_Smart007 wrote:


https://ficoforums.myfico.com/t5/forums/searchpage/tab/message?q=insurance%20scores&collapse_discuss...

 

EDIT TO ADD:

https://ficoforums.myfico.com/t5/General-Credit-Topics/quot-Credit-based-insurance-score-quot/m-p/47...


Yikes, that will chill any credit churner's heart. For TU scoring: no apps in 25 months, no new accounts in 42 months, avg TL >/= $9k. Do we have any more info on Lexis Nexis? 

 

Also found this article on CR impact on auto insurance pricing by state and insurer:

https://wallethub.com/edu/ci/car-insurance-by-credit-score-report/4343/

 

PS - I may have been drinking earlier so feel free to tell me I missed the obvious.


"Do we have any more info on Lexis Nexis?"

 

Take "Lexis Nexis" and put it in the search bar at the top of the myFICO page, you will find plenty I am sure.

if you ever order a copy of "Lexis Nexis" report, depending on how old you are and where you lived, it can be as thick as a Phone Book.

 

after Getting a Copy of Mine, and seeing way too much information going back to when i was 21 or so,

took a good hour to read through, i opted to "FREEZE" my Lexis Nexis Report and also "OPT OUT" of any future stuff.

it was like reading My Life Story, I felt That in the wrong hands, it just would'nt be right. Just way to much Personal info.

 

Freezing My Lexis Nexis Report has not stopped Me From Getting Bank accounts or Credit Cards.

and My Auto Insurance has not been canceled.

 

I believe I read somewhere to FREEZE Lexis Nexis before applying for Certain Bank Accounts.

possibly Credit Cards. (on CC part, I'm no Expert)

Message 9 of 14
Mega Contributor

Re: Tell Me About Store Cards

Or if you really love store cards, you can move to MA/CA/HI, where auto insurance carriers are banned from using credit based insurance scores to set rates!

Message 10 of 14
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