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I recently opened a store mastercard that can be used all over where mc is used. I only use one credit card but since I was saving 20% I opened another one. I never liked opening cards because of my credit. I actually just paid it before the end of the cycle so it wouldnt reflect on my report. Will this hurt my credit and if so but approx how many points? I am trying to improve my score. I don’t plan on using this new card. thanks in advance!

4 Thoughts on Does opening a store mastercard ruin your credit?
  1. Reply
    October 31, 2011 at 12:18 pm

    Using a store card does not damage your credit, what damages your credit is failing to make the required payments or keeping the card open for a long time and just not using it.

  2. Reply
    Steve D
    October 31, 2011 at 12:29 pm

    Actually, opening teh card helps. One of the major factors in your score is available credit – up to a certain point, more available credit is better. I suggest using this card once every 3 or 4 months for something small that you would normally pay cash for (say about $ 25 to $ 50). Pay the purchase off when you get the bill to avoid finance charge. This will keep the card active so the card issuer does not cancel it. Canceling the card will undo the added points in your score from having the available credit.

  3. Reply
    Sgt Big Red
    October 31, 2011 at 12:58 pm

    It would all depend upon your previous credit activity. The truth being that opening a new account will lower your credit score due to the inquiry placed on your credit report. Also too many applications for credit lowers ones score as you are assuming too much debt.

    Just because you now have an additional line of credit does not mean it improves your score. IT may stay the same if you do not use more then 10% of your total available line of credit, but if you have just one account that stays close to the max, your score will take a hit.

    If you want to know more about credit and how it works, you can learn more from the actual source FICO. Here is a link to learn about credit then just to believe what some think.

  4. Reply
    October 31, 2011 at 1:11 pm

    A second line of credit can help build your credit. This account may have a store name attached, but if it can be used anywhere Mastercard is accepted, it is a major credit card and not just a store card.

    Use both of your cards for small purchase and pay in full every month. This will give you more good payment history and will build your credit/score.

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