Build Your Credit History With Departmental Store Cards

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Build Your Credit History With Departmental Store Cards

Build Your Credit History With Departmental Store Cards

By
Add to Favorites:
Having no credit history might seem a comfortable idea at first, but having a good credit history is one of the basic necessities, if you want to be financially secure. Credit card is one of the easiest ways of building a strong credit. However, it is difficult to obtain a credit card without a credit history making the whole situation a deadlock. There are other ways to get around the no credit history drawback, but any day, there is no match for a record like good credit history. There are many established and successful ways to start building a new credit history. Most successful and fastest way to good credit history is a departmental store card. Departmental store cards are very similar to credit cards, in a way that they both operate on credit. They are issued by all leading departmental stores to attract new customers and to keep the existing customers satisfied. These cards are much easier to own, all you have to do is choose your favorite departmental store and apply for their cards. Almost everybody is eligible for it and is approved for the card once they apply for it. Before you own a departmental store card, make sure of the following things: Credit reporting: Make sure your departmental store reports all financial transactions to a credit reporting bureau. If they do not, then the whole idea of choosing a departmental card for credit history does not make any sense. If they do report, then, as you purchase a product on your store card and make timely payments, your records will be reported from time to time. This can positively add onto your credit score and make your report stronger. Exercise caution: While it is a great way to start with the credit history you have to be sure of making timely payments. Because these cards are means of sales promotions, the interest rates they charge for unpaid outstanding balance is quite high. Only if you think you can handle credit card system of working, then think of departmental store cards. Overspending: Consider the amount you are going to spend every month on the departmental store card. Since these cards offer attractive discount rates and monthly promotional offers, it is easy to overspend and cross the available credit limit on your card. At any given time, exceeding 50 percent of your available credit limit is a bad idea since it will reflect as a negative point on your credit history. Also, avoid making any new purchase on your card if you have not paid the full balance due for the previous month. This can add on to your debt and cause your credit history to go bad. Using the card, only to build a good credit history is mandatory. Along with all the above measures, another important step after you have started the store card payment cycle is to read your credit report, once in a while. To know that you are safe and have a sound credit history is a very secure feeling. If anything is not good on your credit report, there are always measures to correct them before it is too late.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

By Credit-Land, Posted: May 25, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading
Top 5 Credit Card Offers For Those With Excellent Credit

Top 5 Credit Card Offers For Those With Excellent Credit

By Credit-Land, Posted: May 25, 2017

Do you have excellent credit? If so, banks are actively looking to win you as a new credit card customer by offering some unprecedented deals. Although banks have been more careful about acquiring customers with questionable credit ... Continue reading
Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading