Why the hate for store cards if you’ve also got prime cards?

Where you can talk about store credit cards, like gas station cards, department store cards, etc.
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Postby JonE » Sun Feb 22, 2015 3:40 pm

I have Walmart (recently canceled Amazon) and will probably hang on to it until I get something that offers groceries as a cash back category (Preferably 5% but anything is higher than zero) since I use it primarily for groceries. That could be Sallie Mae or Amex BCP or a combination of both. Care Credit, despite it's lack of rewards beyond 12 months financing of medical expenses, is the keeper, since it's allowed me to charge expenses that would otherwise be in collections by now.
Wallet: Chase Freedom, Discover IT
Chopping Block: Synchrony
Future: TBD

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Postby Vattené » Thu Feb 26, 2015 2:09 pm

CarefulBuilder14 wrote:http://ficoforums.myfico.com/t5/Credit-Cards/Ask-A-Back-Office-CC-Company-Employee-ANYTHING/td-p/3815867

That's an interesting thread on MF.

One of the lessons is that to determine a new CL, some analysts will look not just at someone's highest CLs, but also at average CLs. So having $10k-ish limits, then getting a bunch of low-limit store cards, can lead to lower future CLs than would otherwise be possible.

Although it would not explain your Amex and Discover CLs, Vattene. Your history with store cards let you get great prime limits without as many intermediate steps.

Interesting read, thanks for posting that!

Maybe I am just an anomaly, I don't know. Or maybe I could be sitting on $30,000 CLs if it weren't for the scourge of all those filthy, unclean store cards.

I still don't get all the disdain. Even that analyst recommended "avoiding them like the plague" and closing them once you had better options. It's beyond me. Sure, now that I have prime cards it would take A LOT to get me to sign up for another store account. But when you're building up to that stage? What is the alternative, secured cards? People like to recommend them at the drop of a hat, but that sounds like a far worse deal to me. Why tie up resources just to get a card you can swipe anywhere?

I wonder if at least one reason might be that they have such terrible terms. It's not an issue if you just PIF, but that OP also said the majority of people regularly carry a balance. More baffling news.
...I guess my takeaway from all this is that I'm just not a typical American consumer.
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My Cards: Barclay Arrival+ | Discover it | Amex ED
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