Store credit cards

[rgalexander]

Does anyone know which store credit cards are the easiest to obtain. Many months ago someone produced a list that listed many different credit cards and the difficulty in obtaining them. Any information would surely help.

[HRx]

Does anyone know which store credit cards are the easiest to obtain. Many months ago someone produced a list that listed many different credit cards and the difficulty in obtaining them. Any information would surely help.

In all honesty.........you're better off just accepting the better pre-approved unsecured credit card offers you recieve in the mail.

[StaciMM]

If you want an easy to get, not too dangerous to have account then I have a suggestion. (The kind you can use to have a positive account after BK but not be too tempted to get back into debt over...)

http://crownjewelers.com

They do not run a credit check, and will open an account with $500-1500 credit limit if you meet the following requirements:

be currently employed
be 18 years of age
live in continental USA
valid contact information
complete and submit our secure online application
not have any prior accounts with Crown Jewelers

They aren't taking a lot of risk, and I say it is a 'safe' account to have because you have to prepay 1/3 of the purchase price + shipping and handling before they send your order. You're not going to go $1000 into debt if you don't prepay $500. There are some rings & pendants in the $25 range, with about $9 for shipping/handling. So, you can put down about $18, have a $16 payment due the following month, and have a positive tradeline that reports to all 3 bureaus. I understand that they report on the 1st of the month, and payments are due the end of the month.

Other cards that should be somewhat easy to get shortly after BK:
Orchard
Walmart
Target Red Card
(This is what I hear, not from personal experience.)

A good plan of action-get 1 or 2 cards that you are SURE to get approved for, & let them age for 3-6 months. Keep inquiries to a minimum. I have also heard it is good to have a mix of cards, so perhaps a Visa, a store card, and a gas card?

[StaciMM]

I've always heard having a variety of card/account types is good-so having a mix of regular, store, and gas cards is good.

In all honesty.........you're better off just accepting the better pre-approved unsecured credit card offers you recieve in the mail.

[tinroofrusted]

Target seems to be pretty friendly towards those who have filed BK.

JC Penny, Kohl's and the like have gotten mixed reviews on other boards.

[HRx]

I've always heard having a variety of card/account types is good-so having a mix of regular, store, and gas cards is good.

Its highly unlikely that this specificity you speak of is significant.......simply having a (mix) of few unsecured credit accounts and a couple of secured accounts is all one really needs. Just keep each accounts standing in good order.....and you'll be fine.

As I stated previously.........you're better off accepting the credit card offers that you recieve post BK too. Dont get into the habit of apply for credit every opportunity you have, just because you're so eager to re-establish your credit!!! This behavior, typically does more harm than good......but you'll be denied credit the majority of the time!!! The pre-approved credit card offers that you'll begin to recieve in the mail each month, will be specifically geared towards individuals with sub-prime and no-credit, hence your application will be approved like 99%* of the times!

Good Luck!

[StaciMM]

Sorry Todd-I didn't see where you were going initially. I thought you were saying NOT to get store accounts all. Waiting for the pre-approved offers is sensible. Going on an app spree when your chances of getting one of the accounts is minimal is damaging, and makes the road longer.

One thing to look out for, though, is the pre-approved cards with a $150 opening fee, and $79 annual fee, and $6.50 monthly fee for a $300 credit limit account. The card is almost maxed out when you get it. (I'm not joking-I think it is First Premier and I get it monthly!) You'd be better off taking $300 and putting it in a savings account for a secured card.

Speaking of secured cards-I've seen that Wells Fargo has one w/ a low annual fee-only $18. In the end, I may just give them a call.

[bkfiler]

my first premire didnt have a 150 fee that i remeber.

they do have mine as a $6 monthly fee but tahts ok. its 500 credit line.

if anybody wants it i can give it to them. i listed it on my bk and i probably wont be keeping it. dont know yet if they will let me and not sure if i want to pay down over 250 whn i could just dump it.

it does have 2 years of positive history.

any opinions?

[AAAArt]

I get the offers which Staci spoke of. AND, if I knew (or thought) that it was the only shot I'd get at a cc for 10 yrs, then I'd prob. jump on it.
Thanks to this board and other reading, I now know better and just toss those in the round file.

[Lightning]

I wouldn't recommend a store credit card as a way of rebuilding credit. Usually, you have to make regular purchases or the account will be closed or marked inactive and will not help your score or credit history. Having a store credit card would generally encourage unnecessary spending especially in the case of a jewelry store. I'm surprised someone would recommend such a card to people who have just come out of bankruptcy. Jewelry is the last thing you should be spending what little disposable income you have on.

The only "store" credit card I can think of that might make sense would be a gas card from the station you use most often. But a secured card or an unsecured card from your current bank with a low limit would be a much better option.

[Mysocalledlyf]

Does anyone know if it's hard to apply for a gas card? I think it's called speed-pass? I just dont even want to try...no more inquiries unless Im certain I have a shot, you know?

[J Armstr]

I read that it's not a good idea to apply for store credit cards. It will drop your credit score by approximately 12-points. Also FICO does not weigh department store cc as high, so the benefit is not there when compared to an unsecured card.

[StaciMM]

Read again please. I'm not recommending anyone go into debt by buying jewelry. Rather, I gave some info on how to open a low cost account that would report to all 3 credit bureaus.

The thing about Crown Jewelers is 1) its a guaranteed approval and 2) you have to put a downpayment of about 35-40% on any item you buy. So-its less likely to lead to spontaneous 'I see it I want it, I'll just charge it' type spending. If you want that $500 item, you'll have to pay about $200 in advance. I think that will curb the impulse!

Personally, I think buying a $25 item (plus a few bucks for s/h) and getting in return a tradeline reporting is not a bad arrangement. That is less than the annual fee on almost any account that someone could get right after BK. Yes, I'll need to use it every 6 months in order for it to remain active. I'll most likely make only 2l purchases (the initial one and another 6 months later) as that will give me enough time to get my home loan, and after that it won't matter.

If you can have a couple of positive accounts reporting, it not only helps w/ FICO but can lead to being able to get approval for other accounts. There are some creditors that won't approve you if you don't already have accounts open. And, plenty of mortgage lenders require you to have a certain # of accounts. (Personally, I'll have 2 4+ year old student loans, the CJ store account, and a $300 limit Orchard when I apply for a mortgage next summer.)

I wouldn't recommend a store credit card as a way of rebuilding credit. Usually, you have to make regular purchases or the account will be closed or marked inactive and will not help your score or credit history. Having a store credit card would generally encourage unnecessary spending especially in the case of a jewelry store. I'm surprised someone would recommend such a card to people who have just come out of bankruptcy. Jewelry is the last thing you should be spending what little disposable income you have on.

The only "store" credit card I can think of that might make sense would be a gas card from the station you use most often. But a secured card or an unsecured card from your current bank with a low limit would be a much better option.

[StaciMM]

Find out who backs the card. Some creditors are known for being ANTI-BK, while others are more BK friendly.

Does anyone know if it's hard to apply for a gas card? I think it's called speed-pass? I just dont even want to try...no more inquiries unless Im certain I have a shot, you know?

Opening any account can have a slight negative on your score, as it will may lower the average age of your accounts and a new account needs time to build a positive payment history. But, if you're just out of a BK, you'll need to open some accounts to start a positive post BK history. The hit you take for opening the accounts will be short lived, while the positive history you gain will be long term.

How it affects you will depend on your overall file. THere is no set equation that if you do X it will cost you or reward you with so many FICO points. If all of your accounts are old, then of course any new account will have a noticeable impact. On the other hand, if you have no open accounts, the longer you wait to open a couple is just wasted time.

Right now, my reports show no open visa/mastercard accounts. The score simulator actually advises me to open one in order to improve my score.

I read that it's not a good idea to apply for store credit cards. It will drop your credit score by approximately 12-points. Also FICO does not weigh department store cc as high, so the benefit is not there when compared to an unsecured card.

Edited to add:
I've read that FICO likes a variety of account types, so revolving credit cards, store cards, gas cards, and loans would be the best mix. I don't know how true that is. It does seem that credit cards have a greater impact than installment loans though.