How will Dept. Stores impact credit score?

[hnhlvr]

If a person quits paying their credit cards w/out filing for BK, and still has three department store cards with $0 balances (and available credit), will using those cards for small purchases (say $10 per month), help rebuild credit?

If it helps, the cards are Nordstrom, Macy's, & JC Penny's.

[magyar123]

Depends - if these outfits perform any credit criteria checks and see that you filed bankruptcy they might cancel you.
Also depends if these outfits' creditprocessing is done by Citi, Chase, or some other big name banks. If so - they will cancel you.

[hnhlvr]

I haven't filed

[Flamingo]

If/when you file and you have any credit cards with a zero balance that survive the BK, there is a 98% chance that the cards will be cancelled, especially if they (Department stores, etc.) are associated with a creditor listed in your fiing. They can be cancelled quickly or it may take several months. If any survive, you can utilize them to your benefit by charging something small now and then and paying it off in full way prior to the due date which can help your credit a little. The BK will overshadow most. Note, however, that a creditor at first may not catch the filing and can even years later cancel the account (happened to us, six years after filing and six years of utilizing the card now and then pristinely). Nothing is guaranteed as to credit cards when there is a BK on your record.

[Trixie007]

Well... understanding that you are not filing BK... I think that if you have new derogatories added to your credit report it is going to have significant negative impact on your scores, regardless of whether or not you file BK. Yes, you'll buy yourself some positive history using those accounts and then paying them off, but in the short term it likely will not off-set the derogatory records. But I think in this economy you will also find those creditors will monitor your scores and will close the accounts once your other missed cc payments hit.

We had a credit card that we paid the balance in full every time after use, never had a late payment, had several years positive pay history with them, and they still cancelled the card once our other missed payments showed up on our credit. Most companies out there are not going to risk leaving an account open under the circumstances you describe, although I've read from a few on this forum that they had accounts even survive BK.