In which I post about my decision to open a store credit card (#18).
The hubs and I are working our way up to purchasing a house. In addition to saving as much as we can towards this goal, I’ve been reading up on how we can improve our good-but-limited credit. One of the ways that caught me eye was to open a credit card with a store.
Normally, I think of this as being a bad thing that you should never do. And, of course, you shouldn’t open a credit card at every store that offers one. But store credit cards register as a different type of credit than, say, a Visa or Mastercard does. So I’ll be managing this card well and illustrating one more type of credit that I can be trusted with. (By managing it well, I mean that I will be paying it off each month and using less than half of my credit limit at any given time.)
I also wanted to be careful when I opened a card like this, so that as we were renting our current home, or when we are applying for a loan for our future house buying, I didn’t have a newly opened credit card in my credit history. I’ll have at least eleven months of no card opening now, since we are one month into a one year lease.
After considering a Macy’s card, I decided to open a Target REDcard. I can use it online and at stores, saving 5% each time. This will essentially equal the tax on my items. (For more information on this card, just click on the logo above.) I applied at the store, which is scarily easy. I’ve got a paper temporary card to use until I get the real one in the mail.
I’m glad to have this goal completed.