Store credit cards for people with bad credit.

Where you can talk about store credit cards, like gas station cards, department store cards, etc.
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Mogul of Pineapples
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Store credit cards for people with bad credit.

Postby Mogul of Pineapples » Thu Jan 15, 2009 3:19 pm

Well it officially looks like the days of store credit cards for people with no credit or poor credit seem to be over. I was talking with a friend that works for a financial company that does a lot of work with store charge cards and he was saying the credit score requirements for many of them have been tightened so much that requirements which were previously sub-prime are now prime.

Now although they usually serve no purpose for those with average and above average credit, store credit cards helped people with bad credit quite a bit in building up their credit scores. That brings us to the question of now what are the best credit cards for rebuilding credit?

It looks like secured credit cards will make a comeback. Those are a beneficial solution for everyone because they can't hurt the bank with a default since it's secured and they can help the individual build up their credit, plus it's a good way for some people to control spendings since they won't be able to spend more than they have.
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bikermike
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Postby bikermike » Thu Jan 15, 2009 6:40 pm

These folks shouldn't have been running around with a pocket full of store charge cards in the first. One or two would do fine but you'd see folks with store charge cards and bad credit with 5 or even 10 or more of them.

I say still give out store charge cards to folks with poor credit because they got to start somewhere but the credit lines need to be in the hundreds and after they got 2 or 3 they should get denied if they try and open up more.

magyar1045
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Postby magyar1045 » Thu Jan 15, 2009 7:09 pm

That of course will never happrm - turn down applicants if they already have 2 or 3 cards. There is money to be made off of folks like that - loanshark level interest if they carry a balance, possible late payment fees, etc.
Banks wouldn't be around very long if everyone would pay off balances in full, and on time.

Kino
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Postby Kino » Fri Jan 16, 2009 3:08 pm

They may complain about the bad credit card card holders but really they love them because they are the most profitable customers! they charge them higher interest rates and they're more likely to carry a balance! the only reason department stores are moaning about it now is because it came back and bit them in the butt finally!

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Mogul of Pineapples
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Postby Mogul of Pineapples » Sat Jan 17, 2009 4:44 pm

Very true. Those that carry balances are the profitable customers, not the ones who pay their bills in full every month. They have a love-hate relationship with these customers. Let's be real they may not love them right now but as mentioned they know deep down their store credit cards for people with bad credit are the biggest money makers in normal economic times. Once the economy does completely turn around without a doubt they will be back at it again issuing credit to anything with a pulse and then charging high interest rates on them.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

bozell
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Postby bozell » Mon Jan 19, 2009 3:33 am

if you want to use store credit cards to rebuild credit you are gonna have another thing coming. now the only cards you can get to rebuild credit are the secured ones

if you have poor credit and are in the market for rebuilding you are officially screwed until further notice

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Postby Cucumber » Tue Jan 20, 2009 10:22 pm

Good. I'm glad.

Do you realize that easy credit only increased the demand on supply and drove up prices??! That's why we inflation has been flat lately. Because in a real world where people only spend what they got prices don't go through the roof from this fake BS demand created by these guys with bad credit and unsecured loans that never should of have them.
OBAMA
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