Eeek! Store Cards!
Not that it matters much because I have no hope of ever being able to afford real estate or a car in Manhattan, but I pride myself on having excellent credit. As such, I was surprised to find out that each store credit card you open knocks 20 points off your credit score. Eeek! From MSN Money:
Steve Rhode, president of Myvesta, a nonprofit consumer-education organization, agrees, saying that each time you open a store credit card, 20 points are taken off of your credit score because, he says, “Historically, store credit cards are issued to anyone with a pulse. They issue credit cards to people who otherwise can’t get credit.”
Other credit counselors say that you should open a store credit card if it is a store that you shop frequently. Williams says that many store credit cards provide their customers with coupons, bonus points and information on upcoming sales that can only be obtained if you carry the store’s card. However, she highly recommends that you open no more than one favorite-store card.
I just called and closed my J. Crew and Express accounts. My Banana Republic/Gap account I use almost monthly and get lots of coupons so I’ll keep that one, but what about Bloomingdales? Or what about my Macy’s card (which I never use) but is a co-branded credit card?