FICO & Department Stores

Another way to hurt your credit score is through department store credit cards. You know the ones that are offered at the cash register.

You have teenager Susie at the register ask, "Would you like to save 10% today on your purchase?" You look at your purchases of $150 and decide sure why not have $15. However, Susie just hurt your score by doing two things.

One, she did an hard hit or credit inquiry on your credit report. Two, you just opened a new credit line.

Now how much did this damage your score? The only honest answer is not sure. However, it did not help your credit score if you already have credit.

As you will learn there are times it does help to apply for store department store cards. Such as you are young with no credit. It can be an easy way to build up a credit report. More on that in another posting.

Getting back to Susie and your new credit card you should say "no thank you" 9 out of 10 times.

Meaning usually it does not help only can hurt. This fact has been stated by many other leading experts in regards to credit reports and credit scores.

LESSON: Don't apply for department store cards. Won't help you, but probably will hurt you in the long run.