Store cards?

Question

If you have a store credit card on your report..how bad is it really? I know the application itself brings the score down a few points but other than that is there any downside to having one and not using it?

Answer 1

Store cards usually hook you in when your purchasing something they let you know if you get this card from them today they will knock off 15% of your purchase this espically is an attractive bate for people purchasing big appliance but i wouldn't go for it. they promise you nice deals for about 6 mths you read the fine print after that its as high as 24% or 28 if you miss  a payment and so forth. I would stick with one major credit card and thats it . to many isnt' good and you will have more reason to spend when you dont' have the money.

cut it up my dear.

Answer 2

Just like any other credit card with its own TOS you agreed to.

Answer 3

Any application you make, store card or major card will ding your credit.

If you have a thick file the ding won't be as hard and the recovery time will be shorter.

But, thick or thin file, your score should recover from the ding within 6 months and at one year it will be meaningless to most creditors (with the exception of mortgages or other large loans)

Store cards do help your credit though they do not count as high in the scoring models as major credit cards.

That is, of course, that you keep the account in good standing.

Not using the card could have several impacts, such as account closure by the original creditor or being overlooked by the scoring models.

The best thing to do is to use it once every 4-6 months and pay in full when you receive the statement.

You don't have to make large purchases to keep it active and for FICO to include it in the scores.

Purchase something small, even a $5 (+/-) purchase will keep it active and included in your scores.

Answer 4

I wouldn't have a store card for anyone.

Answer 5

it varies

Answer 6

It won't hurt to have it on your credit report.  It does increase your available credit and like any other credit card, closing it can hurt your credit.  You've already had a hit on your report since you applied for it, don't take another hit by closing it.  You're doing the right thing by not using it.  If you do use it, make sure you don't max it out and definitely pay it off right away (those things have killer interest rates).

Answer 7

No. use it, don't, makes no difference. Just if you do use it, pay it on time, like any other debt.

But, no, there is nothing difference between the 2... except that store cards often charge more in interest and fees.

Answer 8

Applying for credit does effect you score, but having a store card will not, so long as you pay on time, and keep your outstanding balance low. example $500 credit limit, $400 owed is bad, you are using up most of your credit. $500 limit, $100 owed looks alot better.

Answer 9

I heard that just having a store card makes your credit score go down but having a major credit card makes your credit go up

Answer 10

A store credit card is a tradeline on your credit file and really won't hurt your score.  But if you don't plan to use it, why bother?  Store credit cards are much more likely to close accounts that are inactive for 6 months or so.

If you really shop at this store or it offers discounts to credit card holders, use the card and be sure to pay it in full.  The interest rates on store credit cards is very high.  Never carry a balance.