Do store cards help your credit as much as major cards do?

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forrestst
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Do store cards help your credit as much as major cards do?

Postby forrestst » Tue Mar 14, 2017 12:00 am

What exactly is the difference between store cards and major cards as far as the impact on your credit score? Since I was approved for a Menards card with a $2,500 limit my score shot back up. I kind of hope Cap1 gives me an increase on my Platinum card, I'm supposed to be in their steps program, but I requested an increase after 3 months and they raised my limit from $300 to $400. FNBO is likely going to be stuck at $300 for a long time. It's just so easy to max out a card with a $300 limit, it's just not enough to buy gas for a month and not make multiple payments. I find the Menards account to be more useful as I can use it to buy some tools and not get close to my limit.

I was just wondering if when the Menards card reports monthly if I will see improvement in my scores or if using the Cap1 Platinum has a bigger impact. I have considered not even using the FNBO Visa card but I've just be charging $10 or so on it and leaving it report. It's sad because I don't even have my physical card but I charged $230 on it when I opened it. The statement cut the other day and I'll be paying that off within the next few days.

Is it still going to be critical that I pay down my other cards before the closing date? I really don't plan on using Overstock $250 CL or Victoria's Secret $350 CL. I like Amazon much better. I figure if I make at least one small purchase with each, by the time they close them for non use I'll have a couple of increases with Cap1 Platinum and Menards.


Nixon
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Re: Do store cards help your credit as much as major cards do?

Postby Nixon » Tue Mar 14, 2017 12:04 pm

Nope! Close em if you've got em.
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kcm7
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Re: Do store cards help your credit as much as major cards do?

Postby kcm7 » Wed Mar 15, 2017 12:16 pm

Nixon wrote:Nope! Close em if you've got em.


Are you saying that store cards have less credit-score impact than a major-bank credit card, all else being equal (usage, payment history, same credit limit)?
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

Nixon
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Re: Do store cards help your credit as much as major cards do?

Postby Nixon » Thu Mar 16, 2017 7:47 am

That's what I'm saying.
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kcm7
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Re: Do store cards help your credit as much as major cards do?

Postby kcm7 » Thu Mar 16, 2017 9:29 am

Nixon wrote:That's what I'm saying.


I've heard that lenders might not be as impressed with store cards, but is there evidence that FICO/Vantage don't assign as much weight to store cards (all else being equal)?

Even if so, OP has a pretty short credit history. So I'd say, sure, cancel those cards maybe a year or two down the line, but, for now, use them as a utilization buffer and credit-building tool until his score is higher.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

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CarefulBuilder14
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Re: Do store cards help your credit as much as major cards do?

Postby CarefulBuilder14 » Thu Mar 16, 2017 6:56 pm

Is it true that having several store cards...despite decent FICOs...can raise car insurance rates? It's hard to get the truth when much is kept secret.

My head hurts thinking about some of OP's problems...I'm not sure what is best here. Getting rid of mediocre cards is only good if you don't replace them with others.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

forrestst
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Re: Do store cards help your credit as much as major cards do?

Postby forrestst » Thu Mar 16, 2017 11:46 pm

The reason I was asking is because my FNBO card is still stuck at $300 and was declined for even a $100 CLI. To my suprise Cap1 just raised me from $400 to $750 but the CLI just showed up yesterday. I can't figure out why Menards gave me such a high CL but the $2,500 has really helped. After thinking it over, Menards is really only good for making small purchases that are going to be paid off every month. The only reason for keeping it is if it's actually going to help my credit. I'm not sure what to do about Overstock $250 CL and Victoria's Secret $350 CL. I'm wondering if there would be an advantage to closing them or if they don't hurt anything, just leave them open for a year but don't use them.

It certainly isn't worth it to me to keep cards that make my car insurance higher. I kind of wonder what people think when they see I only have a $300 CL on my FNBO card but have $2,500 on a Menards card.



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