Glam Sam asked:
I did a Credit Report after being denied on a Personal Line of Credit to see that my Credit Score was considered “Poor.” I was wondering- If you open store credit cards like Gap but NEVER use them will this help your Credit Score?
I did a Credit Report after being denied on a Personal Line of Credit to see that my Credit Score was considered “Poor.” I was wondering- If you open store credit cards like Gap but NEVER use them will this help your Credit Score?
Or should you use like $10 every month and pay it off?
Which Stores offer the BEST Credit Card Deals??
PERCY
#1 by iceman on November 28, 2009 - 4:34 pm
MERLE
Opening them and not using them will not help your credit that much. You would be better puting a little on it every month, and then paying all of it off.
I dont have many store cards, but Old Navy has a very good program with alot of deals for card holders.
#2 by Carl_Peters60 on November 29, 2009 - 2:45 am
NEIL
Always pay off your credit cards every month, but you have to use them to show that you are a good credit risk. A good way to start a credit history is to charge everything, but subtract it from your check book as you go, so you won’t over extend yourself.
#3 by Kate S on December 2, 2009 - 1:37 pm
DUDLEY
Opening a card and never using it does not help your credit. You must use the card and pay it off for it to appear on your credit report. The best thing to do is to purchase small amounts and pay the complete balance every month so there is no interest or finance charge.
#4 by gobanana516 on December 4, 2009 - 11:13 am
ABDUL
Never using it will not help–you’re not proving anything. It’s best to make purchases that you can afford and pay off the balance each month (on time of course!) You’ll be proving you can make your payments and make them on time. Plus, it looks good to have a low or zero balance rather than a high one.
If you pay off the balance each month, then the interest rate doesn’t matter. Just look for cards with no annual fee. Gap doesn’t have an annual fee and you can get 20% off your total purchase on the first Tuesday of each month. (Not sure if they still do this or if it’s just in my area–ask them first). You can also use your Gap card at Old Navy and Banana Republic and you will earn rewards points at all three stores.
I think the Gap card is a good choice. I have that one and a Victoria’s Secret card. With Victoria’s Secret you don’t get discounts every month like with Gap, and you don’t earn rewards as fast. I believe Express and Limited are the same way, but I’m not positive. Ask around and find out what kind of discounts different stores offer so you can compare. But Gap is definitely a good one.
#5 by Jeremy P on December 6, 2009 - 3:11 pm
COLEMAN
You won’t improve your credit score just by having a credit card. You’ll have to consistently carry a balance– and make regular, on-time payments.
But I would recommend avoiding store credit cards altogether. They have extremely higher interest rates (23.99%-29.99%) and lots of hidden fees. I would suggest a credit card designed specifically for poor / no credit here:
Of course, these credit cards will have higher interest rates (and some additional fees) when compared to ‘standard’ credit cards as well. But they’ll cost a lot less than a store credit card! Over time, you’ll be able to rebuild your credit and improve your credit score.
Eventually, you’ll be able to apply for better credit card offers with lower APR’s and less fees.
Hope this helps. GOOD LUCK!