Why take a store card upgrade to Visa/MC?

[MrsCHX]

I've only been around here a little over a year. After getting some movement on Target, WM, AE, TJMaxx (all cards I have with upgrade options), I started hoping for an upgrade. But I don't see advantages to taking an upgrade. 

The notion that "store cards are bad" just doesn't mean anything to me. I have store cards for stores I shop frequently and whose rewards I like, will earn quickly and will use. If Target gave me an upgrade there's no way I'd use that Red Card outside of Target. I have AMEX BCE, Marvel, and CO QS for their categories. I wouldn't shift my spend to the Target MC...so why upgrade? Especially with the Synch cards as that gets you a new account (impacting AAoA).

So is it just a desire to have all majors?? Or do people actually shift spend to their upgraded store cards?

[Anonymous]

I'm with you ... particularly when it comes to my Amazon card ... 

That said, I'm willing to listen to other answers from the more experienced among us

[austinguy907]

I would say the primary is for people that don't have a slew of options when it comes to V/MC branded cards already.  Sometimes it's a perks thing going from store only and gaining a 3/2/1 or 5/3/1 structure.  

I actually apped for a Sam's MC when Synch wouldn't upgrade my PLCC version.  Then I got to keep both of them open with 10K padding on each.  5% on gas was a good deal at the time when I was driving all the time.  Sure, I had other options in my wallet but, this was more of a targeted approval challenge for me to get done.  

Some people apply for store cards w/ the hopes of an upgrade because the approvals are easier to get in the door.  Maybe they apply because they want the discount and they'll use the card more often if they don't have to go to the store.

Tons of reasons why some do and don't go for the upgrade.

[Anonymous]

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@austinguy907 wrote:

I would say the primary is for people that don't have a slew of options when it comes to V/MC branded cards already.  Sometimes it's a perks thing going from store only and gaining a 3/2/1 or 5/3/1 structure.  

I actually apped for a Sam's MC when Synch wouldn't upgrade my PLCC version.  Then I got to keep both of them open with 10K padding on each.  5% on gas was a good deal at the time when I was driving all the time.  Sure, I had other options in my wallet but, this was more of a targeted approval challenge for me to get done.  

Some people apply for store cards w/ the hopes of an upgrade because the approvals are easier to get in the door.  Maybe they apply because they want the discount and they'll use the card more often if they don't have to go to the store.

Tons of reasons why some do and don't go for the upgrade.

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+1 

[wasCB14]

I've asked about this before and did not get an answer that persuaded me that it was generally a good idea for people with good credit. I do see two explanations:

1. People don't like to be told they (or their credit) aren't good enough for something. By getting the major, it's like that's no longer the case.

2. Store-only cards can sometimes reach a ceiling beyond which CLIs are difficult or impossible. That's an obstacle (and challenge) for some utilization micromanagers.

I can understand the appeal for someone with bad credit and few options, even if I think some secured cards offer a better way to go in the long run.

My one store card was Brooks Brothers until I closed it, figuring that it would be more sensible in the future to buy clothes with Prestige for Price Rewind and purchase/loss protection. I was happy that it was a store-only card, reasoning that anyone who stole the card info would find it risky and inefficient to buy pants and shirts and then try to liquidate them.

[pipeguy]

In my experience the "bank card" version is a step up due to greater flexibilty in where you use it and CRA "status" per se, meaning its a bank card not a store card. That said I've found store branded bank cards such as Walmart, Sams, TMaxx, etc tend to carry higher APR's that bank issued cards. This higher APR is fine if you PIF or take advantage of promotional low cost extended financing (Sams, Walmart, perhaps others), however I would never carry a balance on a "store-bank card" because it'll cost you dearly in the interest dept. 

IMO generally I think its a good choice to upgrade a store card to a bank card version during rebuilding, however once you are able to, and actually secure true bank issued bankcards, I'd close all of the store bank cards that you don't expect to use such as Sams/Walmart for those stores. Examples would be TJMaxx, DSW (Comenity) and things like that. Cards like the new Chase issues Amazon Prime card are kind of a hybrid. Cards like various CitiBank issued co-branded or Barclay co-branded bank cards  are also not worth using as a daily spender unless you 100% PIF every month - APR's will kill you if you carry a balance. 

[stellar]

I agree with you that not all store cards are bad, some have good rewards.  They're great also for establishing a credit profile.  There is the unfortunate part that they affect your insurance risk score/insurance rates negatively.

Some upgrades to mc/visa have lower int rate than the store version.  And it is easier to keep them active bc you can use them anywhere vs just the store.  

Overall I agree that better credit profiles don't really gain much from an upgrade ESP if it's a new acct (drops AAoA).  

I would say that people put greater value/less value on all these pros and cons.  One person may value AAoA, another the status of a visa/mc logo, some need it to make sense (like I would never use it outside the store so it why would I need upgrade).  

So for one person it may make sense and for another it doesn't.  And that can change over time also.  

For example: someone may desire a store card upgrade to visa bc they have too many store cards and not enough majors, even if it's a new acct.  But maybe in a couple years they wouldn't take the upgrade bc they are carefully watching their AAoA or trying to be under 5/24 or something.

[AverageJoesCredit]

I find it interesting that as we are rebuilding we WANT the visa / mc versions because well they are supposed to be the better versions and can be used everywhere. We enter with the store card dreaming of the upgrade but from learned experience , by the time we wven get the opportunity to upgrade or offered it, more than likely our profiles have significantly gotten better and have moved on to better cards or other Visas and Master cards. By this point, we are also game to Apr part of credit cards so , especially if you spend time here, we start deciding the higher aprs and new account status just isnt worth it.

On a personal note, all my store cards i have, i could probably get the other cards if i applied for them but why go duplicate why shorten my aaol for something my other cards offer and ive ,well, just learned too much about Synchrony, to want to continue Easter egg hunting

[DeeBee78]

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@Anonymous wrote:

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@austinguy907 wrote:

I would say the primary is for people that don't have a slew of options when it comes to V/MC branded cards already.  Sometimes it's a perks thing going from store only and gaining a 3/2/1 or 5/3/1 structure.  

I actually apped for a Sam's MC when Synch wouldn't upgrade my PLCC version.  Then I got to keep both of them open with 10K padding on each.  5% on gas was a good deal at the time when I was driving all the time.  Sure, I had other options in my wallet but, this was more of a targeted approval challenge for me to get done.  

Some people apply for store cards w/ the hopes of an upgrade because the approvals are easier to get in the door.  Maybe they apply because they want the discount and they'll use the card more often if they don't have to go to the store.

Tons of reasons why some do and don't go for the upgrade.

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+1 

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[Anonymous]

Yeah thank you for "correcting" me.....I seen others do it so I didnt think there would be a problem with it.