I'm 2 years post bk7, have 8 active perfect credit cards ranging from 750-5600 limits. No other credit recently except student loans. Why are you guys getting dept store cards? aren't the also "R1"s... Do I need an installment account or 2. And does it matter with whom? I hear finance accounts by nature hurt scores. Should I go take a loan on my paid for car... and if so for how long? Don't want a mortgage for 2-3 years from now. What should I get? Planning to combine/close credit cards to 3 good ones in 2 years, by the way. Just trying to get good credit recently.
RE: What's a good 'Mix' of cre I heard that having one store card helps your score. I'm not sure who said that, but it was on this board. If I'm wrong, someone please correct me.
RE: What's a good 'Mix' of cre Well it has been said that having one retail card with 4 major credit cards is the best route to take when maintaining a good credit history, not sure how the one retail card helps but every place I have ever read regarding scores has mentioned having one retail card, others I am sure will disagree about the 4 major cards but I think less is better, not sure about installments, I do have one when i financed my furniture. Mom
RE: What's a good 'Mix' of cre I'm kind of curious about the right 'mix' as well. I've heard installments loans are a definite plus. Does it matter if the retail cards or installment loans are closed? I think it might not matter but that's a guess.
What dept stores are easier? and do gas cards affect positively? someone would make a fortune cracking the system and publishing it... hmmmm
RE: What dept stores are easie I don't know if Penneys or Sears would fit into your shopping needs but these cards were easy to get for me. Initially, the interests rates are high...and the limits are low...but they're a start. And my understanding is that getting a retail card can help your score. I've also read here that it's easy to get a Kmart Mastercard. Good luck. Donna
RE: What's a good 'Mix' of cre Fair Isaac's FTC presentation clearly shows that having exactly one department store card gives the best results scorewise. While my Macy's tradeline is indeed the "R1" type, it is coded on my report in a way different from credit cards. As for the number of open revolving credit lines, they suggested that 2 is the best, 3-5 being second best. Having the right "mixture" of credit types on your report is also important. In fact, my main credit concern right now is to get "I1"-type tradelines. Amex charge cards (not credit cards) are also helpful, since they show a "O1" tradeline. ("O" in "O1" stands for an Open tradeline). No one in Amex was able to tell me how they report their Bank lines of credit. Since the terms are very attractive, it's worth finding out. Saar
RE: What dept stores are easie Well Target is easy and I think Penney's as well, Lowes is also veyr easy to get. Mom
Saar please define dept store would a lowes/ HD work or does it have to be a macys riches nordstroms type. I would have NO use for one.. so does "having it" make the diff or do I occasinally have to use the thing?
Authorized user work? I have a friend who would let me be on her cards... any of them, actually. Would being an authorized user help? (and if she eventually closes the account, would that still work or does it have to be open)
RE: Saar please define dept st Retail cards are any cards issued by individual stores such as sears, penny's target, lowes etc these cards are not Visa/MC they are just plain old retail cards and any store will do it doesn't have to be macy's or anything.
RE: Saar please define dept st Marie wrote: "would a lowes/ HD work" Your guess is as good as mine. That's why I chose a brand that won't be questioned (Macy's). From my own experience I don't recommend Target. "so does 'having it' make the diff or do I occasinally have to use the thing?" Having it would be a positive factor in the "dept store card" category. But why not using it, so that you build this tradeline to also score high in the other categories? (Payment history, stability, credit line limit, etc.) Saar
RE: What's a good 'Mix' of cre Saar, what FTC presentation are you referring to? Is it the one described here: http://www.creditinfocenter.com/FeaturedArticles/creditscoringconference.shtml They say: "Age, something a consumer cannot control, is a key factor in how your credit score is calculated." From that statement alone I think that FTC presentation was a bunch of smoke and mirrors. I would really like to know why you believe 1 department store is the right number.
RE: Saar please define dept st Why do you not reccomenf Target?? Saar wrote: ------------------------------- Marie wrote: "would a lowes/ HD work" Your guess is as good as mine. That's why I chose a brand that won't be questioned (Macy's). From my own experience I don't recommend Target. "so does 'having it' make the diff or do I occasinally have to use the thing?" Having it would be a positive factor in the "dept store card" category. But why not using it, so that you build this tradeline to also score high in the other categories? (Payment history, stability, credit line limit, etc.) Saar
RE: What's a good 'Mix' of cre Eric wrote: "From that statement alone I think that FTC presentation was a bunch of smoke and mirrors." On the contrary. While I do not expect them to publish the whole formula, they did provide some invaluable credit scoring information. To see the entire presentation, go to: http://www.ftc.gov/bcp/creditscoring/present/sld001.htm The presentation shows 2 things: 1. The optimal number of open revolving tradelines is 2, and 3-5 being second best. 2. A credit file showing a dept store card yields better results (27 pts.) than one w/o it (16 pts). Don't confuse the points shown here with the 300-900 scale, since the latter presumes standardization and the former is pre-standardized. The only conclusion reasonably drawn is that while the existence of a dept store card on record is a positive factor, having more than one would decrease score due to an excessive number of open revolving tradelines, in a way that may offset the advantages of maintaining it. Some may ask why not retaining more dept store cards and less credit cards (while keeping no more than 5 open revolving tradelines)? Technically this would be the same, but in practical terms it may not be as rewarding. First, because credit card diversity (Amex, Visa, Discover) is typically more desired than store card diversity. Second, because the average credit card comes with higher limits than the average store card. I've heard of many $5000+ limit credit cards, but not many store cards offer similar acceptance and credit power. Saar
