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Can You Benefit From a Store Credit Card?

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Senior Contributor

Re: Can You Benefit From a Store Credit Card?

I guess "limited uses" covers one of my biggest gripes - you have to buy something from that store to keep it active, as opposed to my game to keep my couple of Visa/MCs I don't useactive, rotating my Netflix sub to toss them a swipe every few months.

 

I only have two store cards, Walmart & Lowes. Walmart was a rebuilder card and I used to use it alot, but now that I have much better rewards card I just use for occasional Walmart.com orders or a small in store purchase with cash back/over. When I first got my Lowes card I did do a fairly large flooring purchase on deferred interest, but the last several years I just stop twice a year and buy a garden hose or potted plant to keep it active. But "low credit limits" as a con? Walmart is $10k & Lowes $15k, but that's Synchrony. 


Fico 08: 734/716/734 TU/EX/EQ
Message 11 of 25
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Super Contributor

Re: Can You Benefit From a Store Credit Card?

My first CC was a JC Penny card.  I wish I still had it as it would have been 40 years old by now.  Used the right way, store cardss can help you build your credit profile and also get you some great deals too.

2/11/2020: FICO 843 EQ 848 TU 850 EX
Message 12 of 25
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Moderator Emeritus

Re: Can You Benefit From a Store Credit Card?

Will add that looking at an Experian Report yesterday, it showed a category for Department Stores gave me zero but no negative effect.

Somewhere I read many years ago you had to have such cards for max scores. Based on my credit report information, that sure doesn't show as true today.
Starting Score: 300
Current Score: 824
Goal Score: 850


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Message 13 of 25
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Valued Contributor

Re: Can You Benefit From a Store Credit Card?

Half of my store cards were used for my initial purchase, paid off then they are doomed to never see the light of day again. Tractor Supply, Best Buy, and Kohl’s see the most love out of my store cards.

With the exception of Kohl’s, I use BB and TSC cards for financing larger purchases. If they’re going to let me borrow their money for free, why not?



Message 14 of 25
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Senior Contributor

Re: Can You Benefit From a Store Credit Card?

But there is the flipside it lowers your credit based insurance scores which increases premiums.













(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated March 2020.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 15 of 25
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Senior Contributor

Re: Can You Benefit From a Store Credit Card?

The repeating need/want for 0% deferred int. pymt plans are great.  So if there is a repeating need; it's not a mistake.  I just app when I see a need....long term need.  Btw, I still end up pif or ride it out 2 months maybe but not usually.  Choices!

1. Lowe's (love the pymt. flexibility over the Amex Lowe's Rewards and Lowe's Pro)  Have all 3, have 3 options.

2. Home Depot (love the pymt. flexibility, but love swiping the Amex Lowe's Rewards there for spite, & pts. lol!)  Boo hiss hard pull happy Citi.

3. Care Credit (Love, store swiper....hoping for the MC invite one day) Baby products, healthcare products, deferred int. great to fill Ins. gap.

4. Car Care (another keeper...purchase gas-don't recommend, widely excepted in auto shops, deferred int. plan)

5. Wayfair.....large purchase? up to 48 months! crazy good or take the discount.

6. HSN (no longer have, miss it much!  Miss Flexpay)

7. Amazon Net55 (meh-no deferred pymt plan..fail)  Just got the Amex Amazon...much better, use anywhere plus pts. or 60 days. 

For the most part, they all have payment options that beat the heck out of the revolvers when you need them to.

”MY TAKE HOME PAY DON’T TAKE ME HOME”
Message 16 of 25
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Super Contributor

Re: Can You Benefit From a Store Credit Card?


@Birdman7 wrote:
But there is the flipside it lowers your credit based insurance scores which increases premiums.

Nobody has ever been able to actually specify how much of an impact these cards have on actual rates though. If it was as much as people seem to think, we would certainly hear about it and store cards wouldn't be as popular as they are. 



01/2019:
03/2020:

Closed: CareCredit $10K, B&H Payboo $7500
Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.

P.S. I’m a dude, yo!
Message 17 of 25
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Senior Contributor

Re: Can You Benefit From a Store Credit Card?

I don’t think anybody’s tracked it to quantify it we just know it’s a negative reason code at LN.













(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated March 2020.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 18 of 25
Highlighted
Senior Contributor

Re: Can You Benefit From a Store Credit Card?

And there are a lot of threads about it.

But as @GApeachy pointed out, a lot of times a store card makes financial sense.













(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated March 2020.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 19 of 25
Highlighted
Senior Contributor

Re: Can You Benefit From a Store Credit Card?


@Birdman7 wrote:
I don’t think anybody’s tracked it to quantify it we just know it’s a negative reason code at LN.

What if they are store cards but are visa/mc/amex?  Does that negate the neg. reason code?

”MY TAKE HOME PAY DON’T TAKE ME HOME”
Message 20 of 25
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