Department stores, like major credit card companies, have minimum credit score requirements for all applicants. With that said, there are plenty of small, regionally-based department stores that will approve a credit card for consumers that do not have a good credit score. The only way to know which department stores will approve you for a line of credit is to apply for their credit cards.
According to the County of Los Angeles Department of Consumer Affairs, many consumers use department store credit cards to help build or rebuild their credit histories. Compared to major credit cards, the credit limits are low on store credit cards. Even if creditors see you as a risk, they will be more willing to extend you a smaller line of credit!
How can you get approved for a department store credit card with poor credit?
Although there is not a complete listing of department store credit cards that are easy to get for applicants with poor credit, a few stores have lower requirements. The Sears department store credit card can have a credit score as low as $200. Even for consumers that have had their fair share of credit-related difficulties, this is a very easy department store credit card to be approved for.
Applying for department store credit cards at companies such as Wal-Mart, Kmart, and JCPenney can be beneficial if you don’t have a high credit score. Another factor that you should take into consideration is whether you have poor credit or do not have an established credit history. If you have never defaulted on a credit card and make timely payments to a few creditors, your chances of being approved will be much higher.
What happens if you are declined for a department store credit card?
Experian states that credit card applications can be denied for just about any reason. You will receive written documentation in the mail explaining why a new credit card cannot be issued in your name and a suggestion that you reapply in the future. While most creditors will note recent late payments or insufficient income, remember that you have the option of requesting a copy of your free credit report after your credit card application is denied.
Being declined for one or two department store credit cards will not have a significant impact on your overall credit scores, but going on what is known as an application spree will cause some creditors to decline you automatically.
Look for the best department store credit cards, then apply for no more than two or three within a six-month period of time if you want to have the best possible outcome.
Are there any other credit cards that are good for consumers with poor credit?
Department store credit cards are not the only option available to consumers that do not have good credit. Secured credit card applications are rarely declined and help improve your credit score just as effectively as any other type of credit card. You can also apply for a credit card through a credit union if you are concerned about your credit history being a hindrance. Lastly, consider reapplying to creditors that have declined your credit card applications with a co-applicant can be quite helpful.
Gas credit cards and any other type of credit card that has a low spending limit are best for poor credit consumers. There are also other types of credit, such as cell phones and utilities that can help to boost your score. If you believe that a low credit score is stopping you from being approved for department store credit card, your best option is to work on building your credit history before applying again.
You may want to get in contact with past creditors and see if you can re-open old credit card accounts.
Not only will this help to increase the age of your credit file, but it will also give you instant access to credit. Your last two years of repayment history, income level, debt to income ratio, utilization levels, and the number of new accounts opened in your name will have a direct impact on your credit score. If possible, speak to a customer service representative at the department store you want to apply for credit with to see if you are able to get more details prior to applying.
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