Mall credit cards

[thomasdan]

Hello everyone,

Im trying to help my sister get her finaces figure out.

MY question, Her only debt is a CC debt of like 1,000 which she will be paying off in the next month or so.

she does have multiple Mall credit cards like express, nordstrom, etc... but it has been paid off already.

what should she do with that.. she has a credit score of 686.trying to raise it. should she close down the MALL CC or would they close themselves over time if she doesnt use it? what is the best solution to help her CC

any feedbacks would be awesome. Thanks

[thomasdan]

btw, to clarify... the Cards are more instore cards, not a visa or mastercard etc

[dczech09]

Why does she want to improve her credit score? What is her end game? I ask because I do not care what my credit score is as I don't plan on borrowing money ever. Not even to buy a house.

I just recently closed my two credit card accounts.

What I can tell you is this-

Closing credit card accounts will result in a temporary decrease in your credit score. Things that you can do to increase a credit score are as follows:
- Make payments on time
- Charge a credit card and pay it off
- Demonstrate an ability to meet due dates for an extended period of time
- Do not be late
- Time will eliminate bad remarks that may be holding back her credit score

Visa and MasterCard are not credit card issuers, they are simply transactional companies that facilitate credit and debit transfers of money. What you are probably saying is that your sister's credit cards are in-store and not bank issued that can be used anywhere.

Generally speaking, regular bank issued credit cards are better for your credit profile than store cards.

[BMEPhDinCO]

Pay off all cards in full every month - one never needs to pay interest for a good score.

Don't close any cards unless you are tempted to spend too much by having them. "Store" cards still report to credit companies.

The biggest part of a score is age and history - ie, any late payments. Then comes utilization (ie, <9% is good so if she has $1k limit, then $90 or less on the card at the statement date).

I like to visit myfico forums for advice on credit issues - they are super smart there!

[YLTL_Dan]

I'd cancel the mall cards for a few reasons. First, having extra cards open that you don't regularly check leaves you open to identity theft/fraud. Second, it also leaves you open to temptations of using it to "save 10%" on a purchase.

If you're worried about debt utilization on your credit report, you can always call your other open credit cards and request a higher limit.

[hamchan]

I totally disagree. If it's a store you are going to shop at anyway, and you pay off your bill in full each month, then having store cards that offer savings is certainly worthwhile. I buy certain grocery items at Target because their store brand is a lower price than I can find elsewhere, and I get another 5% off of that price as well. I wouldn't get a 5% return on my regular credit card, so it's worth it. It takes me two minutes to pay the bill online.

[snafu]

Your sister might benefit from a review of CCs to see what card offers her the best benefits for her lifestyle. I'd store the paid off, unused store cards in the small home safe or secure place in her home I wouldn't cut up cards or cancel any credit as it reduces available ratio.