Building Credit With a Store Card

gravatar- Sep 22, 2019Building Credit, credit2 comments

One of the classic, old school ways of starting to build credit was by first applying for a store card. 

What Is a Store Card?

A store card is a credit card offered by a store or brand, for example, Gap, Kohl’s, Home Depot, etc. The credit card is designed to be used for purchases within the store. Store cards often come with many store-related perks, for example, discounts, bonus points on store purchases, free returns, and more. Many store credit cards can be used just like any other credit card for purchases outside of the store network as well.

Easy Approval

Store cards are usually easy to get approved for (even for newcomers to credit). But, you will usually only get approved for a shallow credit limit (sometimes as low as $200), and they often come with a very high APR on balances.

Should It Be My First Card?

If you’re a newcomer to credit, then most credit cards will decline you. Why? Because they want first to see some payment history. That’s why store cards may be a perfect way to start building credit, as store cards usually approve even newcomers, and they typically report the payment history to the credit bureaus.

But store cards are not counted by FICO as a regular credit card, and in the long run, will not help build credit as much as a regular credit card. So after having the store card for a few months, make sure to get yourself approved for one or two typical credit cards as well.

 

Other Options

Alternatively, you can also follow these easy four steps to build credit without a store card, which may be much more effective.

Read: How to Build Credit in 4 Easy Steps


Rather watch a video?


Make it a great day!

Was this article helpful?

gravatar
Sam Sam has nearly a decade's worth of experience educating his many readers on everything credit. Sam spends his days checking out credit cards for a full report, from the minute benefit details to the shebang of welcome bonuses. Plus studying the ins and outs of building proper credit. It’s his favorite pastime and he loves sharing it with others.

Leave A Comments

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2 Comments

  1. Great article. Thanks Sam!

    Reply
    • Thanks, Bentzy!

      Reply

Recent Posts

Follow us

image

Click here to subscribe to
our WhatsApp channel

Todays
best offers

image

Chase Ink Business Preferred

Earn 100,000 points after $15,000 spent within the first 3 months.

more info
image

Chase Ink Business Unlimited

Earn $750 (75,000 points) after $7,500 spent within the first 3 months. Intro 0% APR for 12 months on purchases.

more info
image

United Explorer

Earn a total of 70,000 points after a total of $6,000 spent within the first 6 months.

more info
image

JetBlue Card

Earn a total of 100,000 points after a total of $6,000 spent within the first 12 months. See offer details for full offer. Intro 0% APR for 12 months on balance transfers.

more info

You May Also Like

Where Can I Find The Most Accurate Credit Scores?

Where Can I Find The Most Accurate Credit Scores?

What’s sweat-inducing, hair-raising and spine-chilling for men and women alike? Credit scores. Yep, those intangible & non-physical numbers that determine our lending options, insurance quotes, job opportunities and even the fact of having a roof over our head....

read more
Average Age of Credit History -True or False

Average Age of Credit History -True or False

If you ever reviewed your credit report using Credit Karma, Wallet Hub, Nerd Wallet, etc., you may have noticed that they all break down your credit history based on the average age of credit history taken from all your trade lines combined. For example, if you have a...

read more
The 5 Most Important Factors In A FICO Score

The 5 Most Important Factors In A FICO Score

The FICO score model is the mostly widely used scoring model. As per Fico, as much as 90% of lending decisions that are done using a scoring model, use the Fico scoring model. In this post we will discuss the 5 most important factors that Fico would look at in order...

read more
Why Are My Credit Scores Different?

Why Are My Credit Scores Different?

When people check their credit score, should it be by Credit Karma or on their Discover statement, etc., they look at the three-digit number. They take it as a fact that this is their credit score. Period. The same way they know their age and weight, they feel that...

read more
Credit Scores And Mortgages: Here Is What You Need To Know

Credit Scores And Mortgages: Here Is What You Need To Know

Shopping for a mortgage but got bad credit? You are not alone! I invited a great mortgage expert Chaim Tarkieltaub from Mint Capital to explain the differences between the different mortgage products available for consumers at all stages of credit. Let’s explore the...

read more
Intoducing FICO® Resilience Index

Intoducing FICO® Resilience Index

Fico now has another tool to calculate how consumers use credit. The FICO® Resilience Index was created specifically for difficult financial times. Lenders will be able to decide if a consumer can handle his finances during difficult times. They are referring to that...

read more
Credit Utilization

Credit Utilization

One of the biggest factors that credit models look at when calculating a credit score is credit utilization. Credit utilization means how much of your credit line you utilize. The less money you spend on your credit cards, the less money you have in debt, compared to...

read more
Piggybacking Credit- Everything You Need to Know

Piggybacking Credit- Everything You Need to Know

What Is Piggybacking Credit? Piggybacking credit is having a third party, a creditworthy individual, add you to their credit card as an authorized user. This will allow you to receive the credit benefits from that account, helping you improve your own credit score...

read more
image

Download link sent
succesfully

Got it*please check your promotional inbox
image

Error sending download link

Try Again