Store Cards Can Hurt Your Credit Score

Utilizing store cards can be a good way to get discounts on merchandise. However, using store cards can also hurt your credit in the long run. Here are a few ways that store credit cards can hurt your credit score.

Numerous Inquiries

One way that these cards can hurt your credit score is through multiple credit inquiries. Many individuals choose to go from one store to the next and apply for a store credit card with each of them. When you do this, each retailer is going to do a credit inquiry into your credit file. If you have too many credit inquiries, your credit score is going to be lowered.

Balances

Many individuals choose to utilize their store credit cards on a regular basis. When this happens, balances tend to accumulate on the cards. Whenever you get large balances built up on your store credit cards, it can really hurt your credit score. Credit bureaus like to see individuals who do not use all or even most of their available credit. You should try to keep your balances below 30 percent of the total available credit limit. This will help keep your credit score up where it should be. 


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