@longtimelurker wrote:
@Physh1 wrote:They are considered subprime because borrowers with a poor credit history can get them without the strict underwriting 'prime' cards have & the interest rates are usually sky high.
Subprime is used very loosely around here, but the above is really the test. If a card can be obtained by someone with low scores (who could only get a subprime mortgage if at all) then it is subprime. It's really the card rather than the issuer, e.g. Chase Freedom and American Express charge cards can be approved with fairly low scores, whereas other cards in their collections need a much higher score.
That said, IMO store cards are overly hated here. If you don't PIF, then yes, the large APR is bad, but then you should PIF when possible!
If a store card offers a good deal on stuff you actually use, then it might be much more useful to you than a generic bank card.
+1. Well said! 
@tcbofade wrote:Back to the OP for a moment, don't worry about whether a store card is prime or subprime. Is it something that you will use and that will benefit you? Then it's a fine card. Is it something you want to pad your utilization? Then it's probably not for you.
DW has several store cards... the only one carrying a balance is a self written card (Nebraska Furniture Mart) that offers awesome zero percent interest deals. (She's had the card for nine years...never paid a penny in interest!)
You don't have to avoid them, but don't want to overload on them either.
Well said!
@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
Kudos to everyone for the thoughtful and respectful discussion!
As I said in a recent thread, retail cards can be helpful in one's re-build but only if the re-builder has a couple of bank-issued secured cards and wants to add some more unsecured revolving accounts for additional positive payment reporting and utilization reasons. Doing so thickens and improves the credit profile while not making the underwriter cringe at the number of Comenity cards one of may have. I always advise my fellow re-builders here to have more bank-issued cards than retail ones. 3 bank-issued cards and 3 store cards are fine, for example -- not 5 store cards and 1 bank-issued card.
Just my 2 cents for today. (Boy, I certainly have enough pocket change to keep on contributing. 
)
Ratio matters, folks!
@Anonymous wrote:
What if you could only have store cards?
Good question, Oldman!
I certainly doubt that anyone can be blacklisted by EVERY SINGLE lender in the United States. Banks like Credit One, First Premier, and OpenSky (Capital Bank) exist for subprime borrowers. Credit Unions are an option. Hell, Capital One has very little memory. But in the event someone could only have store cards, I would advise them to get some kind of installment loan reporting or recon firmly with the underwriter.
@longtimelurker wrote:
@Physh1 wrote:They are considered subprime because borrowers with a poor credit history can get them without the strict underwriting 'prime' cards have & the interest rates are usually sky high.
Subprime is used very loosely around here, but the above is really the test. If a card can be obtained by someone with low scores (who could only get a subprime mortgage if at all) then it is subprime. It's really the card rather than the issuer, e.g. Chase Freedom and American Express charge cards can be approved with fairly low scores, whereas other cards in their collections need a much higher score.
That said, IMO store cards are overly hated here. If you don't PIF, then yes, the large APR is bad, but then you should PIF when possible!
If a store card offers a good deal on stuff you actually use, then it might be much more useful to you than a generic bank card.
Agreed. Like I said before, love my Target card. 5% is in line with Discover and Chase Freedom only year round, plus it's instant so it's basically like an immediate statement credit. While it's considered subprime because someone with a score in the 500s can get it, the value exceeds any of my other cards.
