Macy's Store Card = Ouch!

[Anonymous]

So I just pulled my free Transunion (thanks Barry!), but the news is not good.

Only change reporting is my new Macy's store card, and my score dropped from 718 to 693.

I knew I would see some drop from the new account, but not that much. I think I am actually being hurt more by the fact that I didn't know my statement cut date and it reported a balance, yet no CL or high credit, and I have no other revolving accounts reporting. The Transunion report lists these as my negative factors:

1 - Short revolving account history (expected this, since I just opened the new card and have no other revolving accounts)

2-High balances on non-mortgage (this is my auto loan, which has a lower balance now than when my score was 718)

There is no recent activity on your revolving accounts.

Your credit report shows no open revolving accounts [?] or it does not report recent information (such as balance or credit limit) about any of your revolving accounts. Your FICO score evaluates your mix of credit cards, installment loans and mortgages. People who demonstrate responsible use of different types of credit are generally less risky to lenders.

 How quickly will I see an improvement on this? My first statement for my new Discover card cuts tomorrow, so I just paid my full balance today so it will report at $0 with $5500 credit line. Am I going to see another drop in score for the new account, or will the low util help it move back up?

I like the Macy's card because I do use it and the discounts are great, but I am not loving this whole not reporting a credit line thing, since it appears it is being used in some kind of utilization scoring...

[Anonymous]

As I see that nobody is answering this, I just want to tell you that I find the question very interesting, but don't know the answer. So there. I know that wasn't very helpful.

The part about revolving accounts means that the Macy's card probably falls into a different scoring category, as it doesn't report a limit or the high balance. If your new Discover now reports a zero balance, you still have no revolving balance reporting, but they should at least report your recent payment, which shows activity.

[Anonymous]

Thanks for the comment, still hoping someone might have some advice for me on this.

[Creditaddict]

You should not have paid your Discover off... The statement you posted for negative saying you are not using your revolving credit is because your paying the balance to $0. you need to let a balance of less than 9% of your credit line report on at least one of your credit cards.

[Anonymous]

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@Creditaddict wrote:

You should not have paid your Discover off... The statement you posted for negative saying you are not using your revolving credit is because your paying the balance to $0. you need to let a balance of less than 9% of your credit line report on at least one of your credit cards.

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My Discover isn't reporting yet, so it is not the reason for that negative. I figured I'd pay it off so only the Macy's balance shows, and the Discover shows no balance once it reports, but does show credit line. I think the Discover will show high balance too, but not positive. I didn't want both cards to show reporting a balance.

[Scuba]

Hi

My Macy's card posted for the first time in 3 months, (balance of $60) and my fico went down like a stone! 

SW said it was because a previously unused card was used or something like that.  I don't know if that was the reason or the fact they no longer post CL but either way, I don't plan on using my Macy's card again until 12-21-2012.

[Anonymous]

OK, this is worrisome. I just applied for and got a Macy's card yesterday PURELY to up my available credit total.

I'm trying to figure out how to get out of the $300 and $500 starter VISA/MC and into one single "grownup" card with minimum $2K line of credit. I have several store cards:

Macy's = TBA (util $0)

Lowe's (revolving line Project Card) = $2000 (util $0)

Wal-Mart = $700 (util $0)

IKEA = $400 (util $0)

Two regular cards:

CapOne MC $400 (util up at moment, like 75-80%--whoops--back to $0 in a couple of weeks)

Orchard Bank VISA $300 (util $0)

Authorized user on 2-3 other cards, not all of which show on all reports for some reason (the UTILs are my share--no idea what others' are):

BP (never, ever using it again) $700 or $800 (util $0)--was parents' account; haven't used it in a couple of years--only shows on TU

One of the parental VISAs, which I think has an insanely high line of $20K and which I may or may not be authorized on anymore, util $0--haven't used it in 4-5 years--doesn't seem to show anywhere

Cap[One Biz Platinum VISA (think the line is $2k, but not sure--partner's business card for emergencies or biz travel only)--util $0

Brand-new car note to the tune of $214/mo plus $99 insurance (roughly)

Still two baddies totaling under $500 still in negotiations for PFD.

Have a mortgage; never been late, 2+ years.

Have PIFd a personal loan of $3K early.

SOOOO....

I thought it would be smart to get the Macy's card --strike while the iron is hot-- and hold it in portfolio, so to speak.

After the first of the year, I will have had the Orchard card for one year, 100% on-time payments. I also hope that the PFDs will have succeeded by then, and that three months of on-time car payments will have affected the overall credit mix positively.

What, then, do you think the impact of adding the Macy's line to this mix will have on my chances for moving into a "normal" VISA or MC with a bigger line? My goal is to have one single "big" card for emergencies and business travel, $2K-$10K line, as I hit the job market.

Thanks, as always.

P.S. Just looked up creditkarma FAKO for today: shows 8% overall UTIL (yay!), open card debt w/limits reported $203 (it's really more like $300), and credit card limit $2700. I doubt this reflects either the car or the Macy's card.

[Anonymous]

Now I pulled my Ex report, also only updated with the Macy's Store Card, reporting the same way (no CL, no high balance) plus two additional inquiries, and my score went UP from 665 to 673.

Even more confused now about the huge drop in my TU score...

[haulingthescoreup]

EX as in Experian or Equifax?

You can't buy your Experian FICO score. If that's an EX score, it's a FAKO, so no telling what's making it change around.

[Anonymous]

Sorry that was a typo, I pulled my Equifax (from here).