 TITLE: Can Store Credit Cards Build Credit? CONTENT: How Can Store Cards Help You Build Credit?\n------------------------------------------\nYour use of credit cards is listed on your credit reports and is factored into credit score calculations done by credit scoring companies. Store credit cards can help you build credit if you use them responsibly by making at least the minimum payment on time every month and keeping your balance low.\nBut for your use of the card to reflect positively in your credit report, it's critical to make sure the card issuer reports account activity to the three credit bureaus—Experian, TransUnion and Equifax. Why so? Some credit card issuers do not report payment history to credit bureaus, or may only report it to one or two. Your store credit card usage will only help you build credit if it's included in your credit reports.\nWhen building your credit, it's key to make sure the information in your credit reports reflects wise financial management. Payment history is the most critical factor in your credit score calculation, and consistent on-time payments may help improve your score. Credit utilization is another large part of the credit score calculation.\nYour credit utilization ratio compares the amount of credit you're using with your credit limits. To illustrate, if your credit limit on your store card is $1,000 and you owe $500, your credit utilization ratio is 50%. If you were to pay your balance down to $100, your utilization drops to 10%, which could help your credit.\nCredit utilization above 30% can drag down your scores, so keep your balances below that threshold if at all possible. As you think about this factor, make sure to consider all your cards together, as utilization is measured on a per-card and an overall basis.\nIf not used properly, store credit cards can hurt your credit. Late payments that remain outstanding for 30 days or more can be reported to the bureaus and potentially lead to a significant drop in your credit score. Making large purchases and letting the balance sit for several billing cycles increases your utilization ratio and can also damage your score.\nHere are a few tips for managing your credit with a store credit card:\n*   **Pay your bill on time.** Set up autopay to pay at least the minimum each month. This helps you avoid missing payments, incurring late fees, being charged more in interest (or a penalty APR) or having the account reported to the credit bureaus as delinquent.\n*   **Keep your credit utilization low.** Avoid overspending on your store credit card. If you make a large purchase, try to pay down the balance before your statement period ends. Although financial experts recommend that you keep it below 30%, a utilization ratio of 10% or lower will help you get the best credit score.\n*   **Look for help if you need it.** If you're not able to make your payments, or you're stuck with a debt you can't pay down, look for other options. You may explore help from a professional who provides credit counseling services. These services are typically provided free of charge by nonprofit organizations. Alternatively, a debt consolidation loan can shift your credit card payments to a lower-interest loan you pay off in equal payments over time. END