Do store credit cards build credit?
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I have no credit history. If I apply for a Target credit card, will it help me build credit? And how about other store cards like Macys, Best buy etc?
Yes. They all build credit
All store credit cards are reported to the credit bureaus and help you build credit history. However, not all store credit cards report to ALL 3 major credit bureaus (Equifax, Experian & TransUnion).
When you’ll want to apply for a major loan or a credit card, the lenders will pull your credit report from these 3 credit bureaus, so having a credit card that report to just one or two of the tree major credit bureaus is not going to do any good.
If you’re applying for the purpose of building credit, you have to check first with them to which credit bureaus they report. If it’s not all three – choose another store.
One more thing that you need to consider is that a store credit card is not enough to build a good score. For a decent score you will need more than just a store card – at least one more “regular” credit card (a secure card will do) and an installment loan (a secured loan, a car loan or a student loan).
Having three accounts for a period of at least 2 years will build you good credit.
Good luck
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