@digitek wrote:I think main issue that hasn't been brought up is that you can only use them at the store in question. This makes them not quite as useful, and they will probably change your spending habits to favor that store.
Also, not sure why, and this might be myth, but I have read it multiple times is that when insurers pull your credit report they will actually take stores card into account in a negative way.
And about Langley FCU example I am not sure what your total amount of credit is, but that might be the issue at play here. If your total is high relative to your income and you have low utilization they have to wonder why you'd want the money...
it really isn't that much of a stretch. A lot of research has been done in regards to credit. It's been proven that someone who has defaulted on cards and loans are more likely to do it again. People who have filed bankruptcy will more than likely do it again. There are hard numbers to back this up. There's a term, cant remember what it is, that describes certain loans like affirm and payday installment loans. They affect your credit negatively because of the type. Why? Because people who use them are likely to default. So, I wouldn't be surprised if there was research showing that if a person has x amounts of store cards, they fall into category c and have a higher likelyhood to default.
@sarge12 wrote:
@Gmood1 wrote:
@sarge12 wrote:
@digitek wrote:I think main issue that hasn't been brought up is that you can only use them at the store in question. This makes them not quite as useful, and they will probably change your spending habits to favor that store.
Also, not sure why, and this might be myth, but I have read it multiple times is that when insurers pull your credit report they will actually take stores card into account in a negative way.
And about Langley FCU example I am not sure what your total amount of credit is, but that might be the issue at play here. If your total is high relative to your income and you have low utilization they have to wonder why you'd want the money...
Langley CSR actually explained the denial to me. Since I usually PIF all cards before they print a statement, it looks as if I have many credit lines with limits over 10k that shows 0 as the highest statement balance ever. They did not wish to provide me a LOC I had no intention of using. In fact, it would only be used if I somehow made a mistake on my balance...which I never have. Another CU I have an account at recently closed my LOC due to non-use, but re-opened it at my request with a 2500 limit vs the previous 5000. I was just somewhat surprised that the actions taken to keep a very low utilization actually caused a denial when their credit pull for me was 826 fico08 from equifax. I am not upset about the denial and I really did not need the LOC. I am almost always denied a CLI for the same reason...I am only using a tiny fraction of my existing credit limit. So, anyone who thinks 800+ scores are a golden ticket to approvals...it's not!
Sarge, now I thought you knew better. How many times have I stated that you guys need to allow statements to cut? 😉
Keep believing the arm chair credit jockeys that think scores and paying before statements cut will give them access to the entire credit world.😂
That being said, I didn't notice any of of my so called prime CCs giving 10% off instantly at Lowes. I proudly used my slumming Lowe's rewards CC over the weekend.😂
(Insert sarcasm here)That CC has held me back on obtaining other lenders. I might need to cancel it. lol
Even if I now know that paying before a statement cuts will get me denied an extension of credit occasionally...I will still do it! The lack of any real need of credit affords me the ability to do as I please on when to pay, and I'm practicly OCD about making payments...usually weekly. It is worth noting that doing so can, and in my case did lead to a denial with 800+ credit scores, but I just sleep better with 0 balances. I am not suggesting that others do as I do, because paying every card before statement cut date is not really necessary unless you are trying for a mortgage soon where AZEO might gain you a few points.
Fair enough Sarge. lol
I could pay all of mine before statements cut as well...not going to happen though.
I'll ride that 55 day float until the wheels fall off.😆
@digitek wrote:I think main issue that hasn't been brought up is that you can only use them at the store in question. This makes them not quite as useful, and they will probably change your spending habits to favor that store.
Exactly this. If you had a store card that offered you 10% off everything year round, you're most likely not going to spend as much checking prices elsewhere. Likewise if they offered a 0% deal, you're more likely going to end up buying that big ticket item from them. That to me is the biggest trap with store cards. (and I'm fully guilty of it too -- stupid Target Redcard
)
Also, not sure why, and this might be myth, but I have read it multiple times is that when insurers pull your credit report they will actually take stores card into account in a negative way.
Not a myth, LexisNexis does indeed have reason codes penalizing store cards in one's file. But how much of an impact they have on your LN score, and whether your insurer would care (or even use the score) is another story altogether.
And about Langley FCU example I am not sure what your total amount of credit is, but that might be the issue at play here. If your total is high relative to your income and you have low utilization they have to wonder why you'd want the money...
@arkane wrote:
@digitek wrote:I think main issue that hasn't been brought up is that you can only use them at the store in question. This makes them not quite as useful, and they will probably change your spending habits to favor that store.
Exactly this. If you had a store card that offered you 10% off everything year round, you're most likely not going to spend as much checking prices elsewhere. Likewise if they offered a 0% deal, you're more likely going to end up buying that big ticket item from them. That to me is the biggest trap with store cards. (and I'm fully guilty of it too -- stupid Target Redcard
Also, not sure why, and this might be myth, but I have read it multiple times is that when insurers pull your credit report they will actually take stores card into account in a negative way.
Not a myth, LexisNexis does indeed have reason codes penalizing store cards in one's file. But how much of an impact they have on your LN score, and whether your insurer would care (or even use the score) is another story altogether.
And about Langley FCU example I am not sure what your total amount of credit is, but that might be the issue at play here. If your total is high relative to your income and you have low utilization they have to wonder why you'd want the money...
In some states, insurers are allowed to pull your credit report when calculating your risk. People with bad credit tend to make more claims.
@sarge12 wrote:@
thats the term I was looking for "consumer finance account". I wasn't talking about a normal payday advance, I was talking about their installment loans, the ones where you take out $3k and end up paying back $10k after one year.
@arkane wrote:
@digitek wrote:I think main issue that hasn't been brought up is that you can only use them at the store in question. This makes them not quite as useful, and they will probably change your spending habits to favor that store.
Exactly this. If you had a store card that offered you 10% off everything year round, you're most likely not going to spend as much checking prices elsewhere. Likewise if they offered a 0% deal, you're more likely going to end up buying that big ticket item from them. That to me is the biggest trap with store cards. (and I'm fully guilty of it too -- stupid Target Redcard
Also, not sure why, and this might be myth, but I have read it multiple times is that when insurers pull your credit report they will actually take stores card into account in a negative way.
Not a myth, LexisNexis does indeed have reason codes penalizing store cards in one's file. But how much of an impact they have on your LN score, and whether your insurer would care (or even use the score) is another story altogether.
And about Langley FCU example I am not sure what your total amount of credit is, but that might be the issue at play here. If your total is high relative to your income and you have low utilization they have to wonder why you'd want the money...
Now thats what I love about Lowes. They normally beat the competition (home depot, Walmart and Amazon) in my area without the discounts. The 10% off the top is icing on the cake!
I never just buy because of the discounts. I always comparison shop.
@Gmood1 wrote:
@arkane wrote:
@digitek wrote:I think main issue that hasn't been brought up is that you can only use them at the store in question. This makes them not quite as useful, and they will probably change your spending habits to favor that store.
Exactly this. If you had a store card that offered you 10% off everything year round, you're most likely not going to spend as much checking prices elsewhere. Likewise if they offered a 0% deal, you're more likely going to end up buying that big ticket item from them. That to me is the biggest trap with store cards. (and I'm fully guilty of it too -- stupid Target Redcard
Also, not sure why, and this might be myth, but I have read it multiple times is that when insurers pull your credit report they will actually take stores card into account in a negative way.
Not a myth, LexisNexis does indeed have reason codes penalizing store cards in one's file. But how much of an impact they have on your LN score, and whether your insurer would care (or even use the score) is another story altogether.
And about Langley FCU example I am not sure what your total amount of credit is, but that might be the issue at play here. If your total is high relative to your income and you have low utilization they have to wonder why you'd want the money...
Now thats what I love about Lowes. They normally beat the competition (home depot, Walmart and Amazon) in my area without the discounts. The 10% off the top is icing on the cake!
I never just buy because of the discounts. I always comparison shop.
Ok I'm officially convinced you either work for Lowe's, or own their stock LOL 
j/k