To those with store credit cards..

People get them because 1) they're easier to get than most major CCs and 2) retail accounts help your "mix of credit" and can boost FICOs.

Scrivener

 

The card is revolving but it also stated usually whether it is a gas card, charge card, credit card....this gives you the mix in credit.

 

Kohl's went down to a 12 point something APR.

 

I like to have retail cards for the mix. But I also like them because I can use the Visa and M/C for travel and use the store cards for clothes and stuff for the kids. I have three store cards, Dillards for my son, Fashionbug for my girls and Target for school stuff. That way my Visa and M/C can be used for gas, hotel and travel. I would like to get gas card, but have gotten lots of new credit and need to let my cards age. Dillards and Fashionbug turn two years old next month. I need to let the others age quite a bit.

 

Another reason for having a store card is to get special promotions and catalogs by the store. Also some stores treat you better and are better about returns and echanges when you have their store card because it shows loyalty to the store. Personally I have several store cards.

 

I personally wanted a Kmart card because if I am running low on my regular cards, I can always pop into a KMART and get a couple of things.

That is very beneficial because the Kmart credit line is broken up, so no matter what, you have to use some of it in Kmart, so I keep the Kmart portion for groceries sometimes.

We have a 'Super Kmart' ;-) and, yes, it is clean.

I think a Walmart card would probably be good for that also.

I think the same would apply for almost every store card.

 

what kind of store cards can I get for credit building purposes with 580?

or should I wait? I figure hopefully in 2-3 months I should be in the 630s-640w

The store cards I am mostly interested in is.

Old Navy
American Eagle
Target

 

That's true about the cash, but think about it, these store cards are helping build credit, cash doesn't do that......... ;-)

 

I didnt know that. Mine is at 21. Do you have a Kohl's?

 

I know Kohl's has great sales geared only to cardholders. You are able to take advantage of huge savings online or in brick and mortar stores. Of course with the interest rate, I pay the balance when the bill arrives.

I have had this card for almost 10 years. Due to the age, I'll never cancel this account. Maybe I'll call regarding an interest rate reduction.

 

Even if you want to pay cash you can charge it and pay off the bill when you get it.

It doesn't work anymore but, in the 1980's you could buy a Nordstrom gift certificate on your Nordstrom card and then cash the certificate in for cash. The pay off the card when the bill comes due.

The benefit was it got you a CL increase because they thought you were a big spender and the other was it's a interest free loan for 30 days.

Most stores have caught on. There might still be a few out there.

 

Yes Love I just got a Kohls and they check TU BTW. I applied because I wanted the mix assuming the interest rate was 22 percent.(the application even said that) But I saw a sign on their door about 12 percent APR and I was about to scream when I got my first statement it had been lowered to 12 percent. I was happy that day. i would ask for a reduction if it did not happen automatically.

 

Not only that but stores very often have deferred and interest free billing. I bought some furniture recently at Robinsons and it is deferred until next year, As soon as the bill comes in I will do a quick balance transfer or pay it off so I don't have to pay the exorbitant interest.
Some stores also have promotions where if you use your card you get an extra 10% off. I know Mervyns and Sears both do this several times a year.

 

Maer hit the nail on the head ... SPECIAL DEALS & REBATES!!!!

It's really easy ... here are a few examples:

Target Visa - every $1k you spend @ Target (it's actually "points" - 1 point per dollar @ Target, 1 point per 2 dollars every where else) you get a 10% off ANY and EVERYTHING for an entire day.

Marshall Fields (and other stores like Saks, Carsons, Parisian) - every $500 you spend, you get a coupon for a bonus 15% off all day

Macy's Visa (same deal for all Federated stores - The Bon, Bloomies, Lazarus, Burdines, Rich's, etc.) - get 3% back on your Macy's purchases (during special events, it goes up to 6%), 1% on everything else ... they come as reward coupons, good-as-cash, redeemable in all departments, all designers.

Sears - Premier rewards can get you up to 3% of purchases back as a coupon (also good as cash)... plus, you can't not like all the 1-year 0% deals.

Monogram (Lowes, Home Depot) - no rewards,but lots of great 0% deals

It used to be that retail cards were a one-way street - the store got loads more data on you, but you got nothing other than a 21% APR in return.

Now, savvy retailers have seen that rewards do increase sales, increase loyalty, etc. So they make the house card attractive - easier returns (try it at Target - it's a dream. Scan item, swipe card, "your account has been credited, thank you for shopping at Target."), lower rates (all of the cards above offer tiered interest rates -- Target as low as 9.9%, which is VERY competitive with most bank-issued cards), and now, rewards (cash/coupon/%-off).

A savvy consumer will use the store cards to get 0% APR ("free money") and/or cash-back (or coupons-back). The key is to pay any balance that would generate interest charges off at the end of the month (transfer with a 0%/no-fee Chase offer?) and you're the winner. So yes, Virginia, there is a Santa Claus- you can get something for nothing!

How do the make money? They still get a warehouse of data on you and your purchasing habits (I get all sorts of interesting coupons in the mail from Target), but they also know that over 80% of consumers are too lazy (none of us reading this, I'm sure!) and will let balances rack up and interest charges pile up.

My golden rule of thumb - "what's in it for me?"

Happy shopping-
mj

 

One more thing ... about "protections" ...

Most bank's "protections" are not worth the time it takes you to call them. Sure, for internet purchases that never show up ... but not for a good old fashioned merchant dispute. Try getting Chase to help you with your dryer from Sears that makes too much noise 6 months after the warranty expires?

That happened to me. BUT, I put it on my Sears account. So when I sent a PFB letter complaining about the noise from my dryer, they were able to look at my account, see that every appliance in our house is a Kenmore, and I had a call the following day to schedule a replacement.

-mj