I've seen several posts of people with department store cards & gas cards... Do these type of cards help you rebuild your credit??? If so, then what cards should I apply for??
Yes, if they report to the credit bureaus. Most major department stores report. Fewer gas cards do. Also, for some reason, if you have only major cards, adding one or two store cards improves your credit score.
Yes, one or two retail cards could increase your credit score, provided they report to the credit bureaus. And if they don't report, they couldn't harm your credit score. My theory for why they could actually help your score is that many retail cards have minimum payments well above the 2% or 3% per month typical of bank cards. In this sense, they are similar to the travel cards like American Express Green or Diners Club. Creditors know that if you can pay in full, or even pay 15% a month, without any delinquencies, that you aren't in financial trouble (yet.) Why would anyone want retail cards? They're often fairly easy to get. If you have only subprime bank cards, or none at all, a retail card may offer you the best credit terms you've ever had. Most retail cards charge no annual fee, with interest rates in the range of 20-22%.
Rich guy-- sounds like a good explanation as to why retail cards boost a credit score. Also, they probably figure that you are a good risk for making the minimum payment and paying the hefty interest. It's not a good idea to revolve on a store card. By the way, I noticed that Wal-Mart (which is issued by Monogram Bank of Georgia) has a three-tiered interest rate structure: 11.9, 15.9 and 19.9. So this is a card you could probably revolve on if you get the 11.9.
