How Do In-Store Credit Cards Affect Your Credit Report?

How do in-store credit cards affect your credit report? An in store credit card can adversely affect your credit report and credit score if you have too much debt. It depends on the account. If a jewelry...

It depends on the account. If a jewelry store is the only account you have, that's negative. They figure that if you don't have any credit at all and you have to go out and buy your engagement ring on credit, you're in big trouble. Creditors like American Express are a good thing because it's going to counterbalance the jewelry store. The thing they look at is your debt ratio. If you have a credit card that has $5000 limit and you order $2500 or less, your credit score is less than 50% vested in credit. That's not a bad thing. If you charge $4000, you have more than 50% vested in credit and that's bad. They like to know if you have a little bit of wiggle room to survive a month or two until things get better and you can start paying again.

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