It’s tough to tell which internet advice is correct, but I have read that having different types of accounts help credit scores.
My son JumpStart Jack isn’t getting a mortgage any time soon. There isn’t a car loan on JS Jack’s Volvo because it was rolling off the assembly line, about the time he was born. Thankfully, loans are not part of his college education yet. I’ve read about methods where a loan is taken, and then repaid for the sole purpose of building credit, but that seems like a hassle, and would incur some cost.
What’s left? Consumer store credit cards. Could Victoria’s Secret help his credit score?
A consumer store card will add one more no fee account that ages and improves credit.
Which store should I pick for him? Store cards aren’t likely to have any worthy perks or bonuses. It really doesn’t matter which store, because I don’t want him using the card anyway.
So, which store?
- Sears? No. Too manly.
- Banana Republic? No. Their coupon or marketing scheme might actually tempt him.
- Victoria Secret. Perfect. I just want see the pretty pink card, with his name on it.
Mrs. JumpStart and I have always enjoyed walking into the Victoria’s Secret store on any mall trip with Jack, just to embarrass him.
The application got the instant approval, and credit line of $750. They did have one perk that will be great for JS Jack. Whenever he buys a bra, he gets free shipping!!!
JS Jack is currently 18 and 4 months. He is an authorized user on 2 of my AMEX cards. JS Jack has the Discover Student card and the Bank of America Student Cash-Back card. The graph below shows his credit score according to several credit score monitoring services.
If this technique seems to help Jack’s score, I’ll run it again in a few years for my daughter JS Jill. Check Jack’s recent progress report here. However there is no way I’m getting her the VS secret card. Sears will be her style. (If Sears is still in business.)