Why Store Credit Cards Are Bad for Most People

• The new account penalty is about to drop your credit score 15–30 points.
• New accounts do not build your credit score for many months, until the system sees you making on-time payments.
• The new account is often maxed out the day you get approved — this further drops your credit score by as much as 85 points, since it looks like you got a new card and maxed it out on day one.
• Beware of hidden charges — 0% interest offers have a time limit; if you don't pay off the full balance, the card companies retroactively add back all the interest at their rack rate, often close to 30%.
• You will have another hard inquiry, dropping your score another 5 points.
• Your score could drop over 100 points simply from opening a new card and getting a credit limit that's maxed out on day one!

Why Is Reporting Your Rent So Much Better?

• Because you are reporting all of your past history and it is not a new account!
• Rent is the fastest way to improve your credit score, and it reports in days not months.