Department store upgrades my current store card with a visa credit card. Will this affect my FICO score.?

Answer 1

As the first poster said - yes

Fico scores major "credit" cards higher than they do store "charge" cards

Plus, when a store card is upgraded, the upgrade usually comes with a credit limit increase, which helps with utilization on the card and the overall utilization.


edit++++
Generally when the store card is upgraded to a major credit card, "initiated by the creditor not the card holder", there is no hard inquiries. They will pull soft's instead.
Also, the open date (history) of the store card usually is not lost. The major card will have the "same" open date as the store card. The only thing that should change is the account number and the credit limit.

They generally will not allow a person to have both the store card and major card, it's usually one or the other



If a person has a store card and applies for the major card, when the creditor had not offered the upgrade - then there could be a hard inquiry. If approved the company would probably require that the store card be closed, then the person would probably lose the store card history.


There is a huge difference between the credit company inviting a store card holder to be upgraded and a store card holder requesting to be upgraded.

Answer 2

Yes/No despite what other people said here. If you are "upgrading" cards what you really mean is they are "closing" your dept card and issuing you an actual "VISA" card good anywhere. It's a totally separate account. The positive aspect is that you'll open a new account that is revolving (looks better on credit). Negative thing is you are closing your account (less active accounts) and the length of history of your account is hurt (10% of your score). Maybe you can keep the "store" card open and just get the new VISA?

If the company ran another credit inquiry to qualify you for the VISA your score might get dinged as well.

Answer 3

First, that's fairly useful to cancel in spite of monitoring provider you're dropping funds on. those little suggestions are valueless. not having a mastercard isn't a ding on your credit historic previous or score. that's a primary remark that probably this might strengthen your score. in case you fairly had an 800 FICO, why problem approximately including on your score? Oh, wait. That score is probable not a FICO. monitoring amenities use Fakko rankings. Experian and TransUnion use Vantage rankings (diverse scale). beginning any mastercard can strengthen your score in case you utilize it and make the money on time. yet do not open a mastercard purely because of the fact the monitoring provider reported it. in straight forward terms open a save card in case you fairly will USE the cardboard and that's a convenience to you.

Answer 4

Speaking as a nationally known credit score and mortgage lending expert (book, radio shows, newspaper columns)...

So long as they do not open a new account for you, your scores should rise. A new account lowers scores in many cases, not nearly every case.

Department store cards generally affect credit negatively--but I've written enough columns to say, "But don't close a store card for that reason. There are other things to consider. I'd have to see your credit reports for best advice."

Answer 5

Yes, it will improve it. It is considered "better" credit.