Store credit cards, to many?

Question

Is it bad to have 4 "STORE" credit cards?

There only able to use them in the store, nowhere else

Answer 1

It depends. If you got the cards to get a discount on your first purchase (and subsequent purchases) and pay off the balances immediately, store cards aren't so bad. But if you aren't paying off the balances right away, you're probably racking up a lot of interest because these cards usually carry high interest rates.

If you aren't paying off the balance immediately, you'd be better off with a low-interest "general purpose" card. But, remember, don't use that as a license to spend money you don't have.

However, don't rush to close those store cards, especially if you plan on applying for a loan soon. It will hurt your credit score. Learn more: http://www.kiplinger.com/columns/ask/arc...

Answer 2

There is a point where too many credit cards actually hurts your score but it's probably closer to a 3-digit number.  Four store accounts would only be bad if you carry balances.  The interest rates tend to be pretty high on store cards.

Using them and paying them in full would build a good payment history, just like a major credit card.  Store cards are more likely to close accounts if they are inactive for a period of time.