worthless department store credit cards

[Dooling37]

Hey all,

I know there's some knowledgeable finance people roaming these forums... I didn't find anything along these lines in the archives.

I've applied for and received 5 new credit cards from various department stores / online stores in the last 6 months or so, all for the sole purpose of getting a signficant discount on the purchase of the moment. I haven't used any of them since that initial, discounted purchase, and of course paid them all off immediately. I have no other use for them (get rewards that I am happy with with main credit card, which has a sufficient credit limit for all needs), and would prefer to keep less accounts open for security reasons, so I'm planning on cancelling them all shortly, BUT... want to know if there are any legitimate credit ratings concerns to doing so... such as: reduced score for cancelling accounts shortly after opening, cancelling several accounts in a short period of time, etc.

Please stick to the facts, if they exist and are public knowledge... I've already found plenty of speculation via google searches ; )

cheers
Bob

 

[erub]

department store cards are generally viewed as bad, because they will give a card to pretty much anyone with a pulse..while cancelling them lowers your max available credit, i say if you pay ALL of your CC in full each month, i'd get rid of them, because the ratio of debt/available credit doesnt really apply..also depending on your credit history age, they could be greatly lower the average age of the accounts since they are all less than 6 months old

advise may not apply if you play BT games, plan on an apporama, or other such activites

btw, all credit advice is speculation, because no one knows what criteria exactly FICO uses in determining the score..and no one works for EVERY bank to be able to give universal lending criteria

 

[Eeezee]

I'm pretty sure the standard rule of "every credit card application reduces your score" still applies to department store credit cards. Immediately cancelling the card will only result in a net negative score on your credit score.

I'm no expert though. What could possibly be the harm in holding onto them? If there are monthly/yearly fees on any of them, then I'd say cancel those cards.

 

[Dooling37]

Originally posted by: erub
btw, all credit advice is speculation, because no one knows what criteria exactly FICO uses in determining the score..and no one works for EVERY bank to be able to give universal lending criteria

good point.

I guess I was hoping someone else had a link they'd found to answer this question, but then, just cause a webpage says something doesn't make it so, either... ; )

None of the cards have fees -- I'm more concerned about keeping them open cause of fraud possibilities (the more cards...) and / or forgetting about them.

I'll probably keep each open for a year, then cancel. Seems like a good compromise....
Thanks for the input.

cheers,
Bob

 

[giantpinkbunnyhead]

Well I have heard it works both ways...

Keeping lots of open credit lines with zero balance is seen as "bad" because it demonstrates a lot of POTENTIAL to accrue debt.

 

[kranky]

The reason people keep asking this question is because there is no authoritative answer. Credit scoring formulas are secret, so there is no way to know for sure what might happen to your credit score.

But what is known is a longer credit history is good, low utilization is good, lots of inquiries are bad. Remember that "good" and "bad" are only comparative terms; if you apply for a card and it knocks your score down five points, what does that really matter in the big picture?

I would say if (1) you don't have a long credit history and (2) you don't have other established credit accounts, then don't cancel the cards. Otherwise, cancel them if you prefer.

Unused cards probably help your score since you will have low utilization and help build your credit history.

Also remember that your credit score only matters when you are applying for credit. People sometimes act like every move is going to affect your life starting the next day. Who cares if your score drops 50 points due to temporary high utilization as long as you can pay it off and regain those 50 points before you need to apply for credit again.

 

[FelixDeCat]

I opened a Mervyns department store account in 1993 and used it until 1998, when I closed it. Those bastages are still reporting, "paid as agreed" as opposed to simply closed in 1998 and no history. You dont report payment histories when you havent gotten a f'n payment in almost a decade!!!! They are dumbasses who dont know what the f they are doing.

Dont bother with jewlrey store, department store or gas station credit cards. They will fook you over with high rates, incompetent systems (as demonstrated above) etc. Sure they might provide you with a measure of convenience and have special 0% offers, etc, but in the end, youll take it ITB.

 

[alien42]

i am stuck with a belk credit card that i apparently signed up for around 15 years ago (i do not even remember stepping foot in a belk) and i can not get rid of it. i called belk and they do not have my name in their system yet my credit report shows it. because of my experience i would say close any card you do not plan on using again.

 

[JS80]

Most common passwords used:

13 - cookie123
12 - iloveyou
12 - password
11 - abc123
11 - fuckyou
11 - miss4you
9 - password19
9 - clumsy
8 - sassy
8 - summer06
8 - pablobob
8 - boobie
8 - fuckyou1
8 - iloveyou1
8 - tink69
8 - password1
7 - gospel
7 - terrete
7 - monster7
7 - marlboro1
7 - bitch1
7 - flower
7 - space

 

[FelixDeCat]

Originally posted by: JS80
Most common passwords used:

13 - cookie123
12 - iloveyou
12 - password
11 - abc123
11 - fuckyou
11 - miss4you
9 - password19
9 - clumsy
8 - sassy
8 - summer06
8 - pablobob
8 - boobie
8 - fuckyou1
8 - iloveyou1
8 - tink69
8 - password1
7 - gospel
7 - terrete
7 - monster7
7 - marlboro1
7 - bitch1
7 - flower
7 - space

ummm.....what does this have to do with credit cards?

 

[Compton]

Originally posted by: FelixDeKat

Originally posted by: JS80
Most common passwords used:

13 - cookie123
12 - iloveyou
12 - password
11 - abc123
11 - fuckyou
11 - miss4you
9 - password19
9 - clumsy
8 - sassy
8 - summer06
8 - pablobob
8 - boobie
8 - fuckyou1
8 - iloveyou1
8 - tink69
8 - password1
7 - gospel
7 - terrete
7 - monster7
7 - marlboro1
7 - bitch1
7 - flower
7 - space

ummm.....what does this have to do with credit cards?

He just hacked all your credit card accounts online.