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First of all, hello fellow Y!A people!

I’m 19 and trying to establish some credit history. I’ll need it mainly because I am considering a career in finance.

I’ve been approved for a Capital One No Hassle Card

I’ve also applied for a Victoria’s Secret Angel Card.

Yes, I understand that applying for cards lowers your score, but since I’m only trying to raise my score and gain history right now, I think I’ll be okay.

I plan on making a purchase using the store card, then going right behind that and paying the bill with the credit card. Then I can pay the whole bill off with the debit card at my bank later.

So, should I get a JC Penny card or a Macy’s? Which one has better rewards and the most places to use it in? I haven’t applied for either yet.

Any advice would be appreciated as well. Thanks!

3 Thoughts on Should I get a JcPenny or a Macy’s store card?
  1. Reply
    November 1, 2011 at 3:56 pm

    Stop applying for all the store cards. Your chances of being turned down increase with each application. Yes, each credit application results in a hard credit inquiry which dings your score. But when you apply for multiple new credit cards in a short period, it takes a bite out of your score.

    Secondly, your plan to use the CapOne card to pay off the store card has just one major flaw. Doing so is a cash advanced. You get hit with a cash advance fee of 3% to 5% for each transaction. Cash advance has a higher interest rate and interest starts accruing immediately. A very expensive way to build a little credit.

    Store credit cards tend to have higher interest rate and are limited to just that store. They don’t have rewards programs like major credit cards do either. Only get a store card if you have some special purpose, like discounts for card holders, and actually use the card.

    The best way to build your credit is to use that CapOne card for small purchases and pay in full every month. This will build good credit history, save paying interest, and keep you out of debt. It takes years to build credit. You don’t do it overnight by taking out a bunch of new lines of credit and shifting debt from one card to another.

  2. Reply
    November 1, 2011 at 4:37 pm

    Who told you that you needed to have good credit for a career in finance??? A finance career is not a reason to get a credit card. You don’t need good credit for a finance career. You only need to avoid bad credit.

    No employer will disqualify you for having no credit. They will only disqualify you if you have bad credit (late payments, defaulted loans, too much debt, etc). One major credit card is probably okay, but anything more than that is just leaving yourself open to debt, which puts you in danger of having bad credit.

    Get your degree and a high paying job before you start worrying about things like credit.

  3. Reply
    My Take on It
    November 1, 2011 at 5:18 pm

    I think you should just stick with the Capital One card and see if you can handle that.

    You don’t need a Macys, JCPenney or VS card. The temptation to go to those stores with your card and spend on things that are frivilous is too high. And so is the interest on those cards.

    See how you can handle just having Cap1. Just because you are going for a career in finance does not mean you need a multitude of credit cards.

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