Store issued cards and credit score

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5 posts
xcanchaserchicx
 
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Joined: Thu Dec 10, 2015 3:50 pm

Store issued cards and credit score

Postby xcanchaserchicx » Thu Dec 10, 2015 4:05 pm

Hi everyone,
I am new to this site and I have a question that I have not been able to find an answer to. Currently I am on the journey to wanting to pay off all my balances and find ways to improve my credit score. I know that this will take a while but I had a question about store issued cards. I currently have 3 store issued cards, 1 is paid off and the other 2 I am working on. My question is the card that is paid off (it's been paid off and unused for 5 months now), if I used it and pay it off every month does this increase my credit score over time or does it not matter? Thank you.


CardAttack
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Re: Store issued cards and credit score

Postby CardAttack » Thu Dec 10, 2015 9:08 pm

Welcome to the forum! Congratulations on paying your cards down. It sounds like you have a committed and good plan in place.

Making payments on time is probably the most important thing you can do to ensure a solid credit score. Keeping the accounts you no longer use will help as well. Lenders will see that you handled the making payments on the account well. Also, lenders like to see accounts that have been open for a long time. That account will help your score.

Keep up the good work!
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ingramjuan
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Re: Store issued cards and credit score

Postby ingramjuan » Thu Dec 10, 2015 10:58 pm

xcanchaserchicx wrote:My question is the card that is paid off (it's been paid off and unused for 5 months now), if I used it and pay it off every month does this increase my credit score over time or does it not matter? Thank you.


I would say continue use of your cards and paying them off in full each month can help improve your score over time. I would also keep the balances under 20% of your available credit will help as well.
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takeshi
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Re: Store issued cards and credit score

Postby takeshi » Fri Dec 11, 2015 9:01 am

xcanchaserchicx wrote:My question is the card that is paid off (it's been paid off and unused for 5 months now), if I used it and pay it off every month does this increase my credit score over time or does it not matter?

It's not quite so simple and straightforward. You don't get an increase in your score every time you use and pay off a card.

However, Payment History is built by using and paying your cards (and paying your other credit accounts). Payment History is the biggest factor:
http://www.myfico.com/crediteducation/w ... score.aspx
...but not the only factor.

Amount Owed is the second biggest factor and something with significant impact that falls under Amounts Owed is your revolving utilization. Revolving utilization is simply balance(s) / limit(s) as indicated on your reports. Generally, lower revolving utilization is better as long as you don't have all your revolvers reporting 0 balances. General advice is do not exceed 30% but that's just a suggested maximum while optimal will be under 10%. The number of reporting balances also has an impact.

Vermonster
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Re: Store issued cards and credit score

Postby Vermonster » Fri Dec 11, 2015 9:15 am

Unless you need an amazing score for something I wouldn't worry too much about reporting low balances. Your utilization has no history so within 2 months you can easily make it look good. Focus on making on time payments and reducing the balance strictly for financial benefit. Your credit score will reflect good financial decisions, it just might take time.
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