I saw this mentioned in a thread from a few months ago but it never really got a clear answer. So wanted to make a post just on it. I'm looking at doing something to boost my credit because I currently do not have enough to get a credit card. Does financing from Best Buy or hhgregg and paying it off in time help your credit or make it easier to get a credit card through them?
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Does Financing electronics help credit?
- Thread starter KiKaL
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Best Buy has two cards. Ones a financing card and then they have a full blown Credit Card. I keep getting rejected for credit cards because I have 0 credit as of now. I know there are some other ways to try and build credit but I need a TV and if doing this could help my credit it would be perfect.
I have been told financing at Best Buy leads to getting their credit card easier but I really don't know if that's just BS.
I have been told financing at Best Buy leads to getting their credit card easier but I really don't know if that's just BS.
KiKaL said:I saw this mentioned in a thread from a few months ago but it never really got a clear answer. So wanted to make a post just on it. I'm looking at doing something to boost my credit because I currently do not have enough to get a credit card. Does financing from Best Buy or hhgregg and paying it off in time help your credit or make it easier to get a credit card through them?
Greedy banker here.
It would be better to get a Visa/Mastercard/Discover/Amex as these are "reputable cards" and help your score more than a store card which has at least 3 negatives against it.
1. Can only be used in that store.
2. Has a higher rate of interest. (Most are in the 25-30% range)
3. Store cards are usually easier to get. They're really just an extension of marketing and/or the layaway services of old in that they get you to buy the product there.
Credit cards of any type usually help your score unless they are 70% - 100% maxed out. Also, having nothing but store cards usually does not help your score over time to the highest levels - i.e.- No 800 score for Sears/JC Penney?Best Buy cardholders only unless they are attached to a Visa/Mastercard.
EDIT- Missed part of the question, I believe that you could probably get a Visa/Mastercard if you actually tried for one and did not ask for too much money (& your credit doesn't stink).
I got the impression you may not have tried for one of those. If you can't get one of those then get a store card first, pay on it and 3-6 months later try again for a Visa/Mastercard.
If you get a Best Buy credit card, that is underwritten by HSBC and will have the same positive effect on your credit score as if you had gotten it from a "real" bank. Many other store cards are like this now, just look into it. If you recognize the name of the bank that runs the card, then it's probably safe.
Edit: Also, with any store card, be sure to pay at least the minimum as soon as you get the bill. They are notorious for slow payment processing.
Edit: Also, with any store card, be sure to pay at least the minimum as soon as you get the bill. They are notorious for slow payment processing.
Tarazet said:If you get a Best Buy credit card, that is underwritten by HSBC and will have the same positive effect on your credit score as if you had gotten it from a "real" bank. Many other store cards are like this now, just look into it. If you recognize the name of the bank that runs the card, then it's probably safe.
Edit: Also, with any store card, be sure to pay at least the minimum as soon as you get the bill. They are notorious for slow payment processing.
It is underwritten by the HSBC. The high APR really doesnt matter because its Interest free for 18months and I already have the money for the TV. I'm strictly doing it this way just to try and build some credit.
So am I better off just applying then for a best buy credit card? I'm scared to do it because I feel like I will just get declined again and ding my credit again.
Edit- So when you guys say a store card you mean one such as this Finance card correct? Not one that can be used everywhere?
KiKaL said:It is underwritten by the HSBC. The high APR really doesnt matter because its Interest free for 18months and I already have the money for the TV. I'm strictly doing it this way just to try and build some credit.
So am I better off just applying then for a best buy credit card? I'm scared to do it because I feel like I will just get declined again and ding my credit again.
How often do you apply for credit?
Have you thought about a secured loan using the money you have to buy the TV?
Do you know what your score is (You don't have to tell, I was just wondering if you know it)?
I have applied to different places 3 to 4 times within the past year or so.
No I haven't thought about a secured loan. I guess I should probably look into that. Just figured the idea I had would just be the easiest since I need a TV and I by electronics quite a bit so I would have a use for it.
I have no clue what my credit score is. As of now I have never hard my name on anything nor ever had a credit card so I'm guess it's whatever you start out with : /
No I haven't thought about a secured loan. I guess I should probably look into that. Just figured the idea I had would just be the easiest since I need a TV and I by electronics quite a bit so I would have a use for it.
I have no clue what my credit score is. As of now I have never hard my name on anything nor ever had a credit card so I'm guess it's whatever you start out with : /
KiKaL said:I have applied to different places 3 to 4 times within the past year or so.
No I haven't thought about a secured loan. I guess I should probably look into that. Just figured the idea I had would just be the easiest since I need a TV and I by electronics quite a bit so I would have a use for it.
I have no clue what my credit score is. As of now I have never hard my name on anything nor ever had a credit card so I'm guess it's whatever you start out with : /
So you are probably at 0 for a score. It's not hurting your credit because you don't have any.
The bank I work for will spot anyone with 0 score a 500.00 credit card, but given the wacky economy, those rules have changed elsewhere. I would try a credit union.
A secured loan is great because you're guarenteed approval and you should be able to get the $$$ right away. At my place, the rate is 2% above the Savings rate which is low. Since it's an installment loan, it's reported to the credit bureaus, & it can be paid off at anytime.
However, credit cards do have a tendency to work on the score faster (good or bad), so it still wouldn't hurt to try to get one of those.
Hmm looking at Best Buy's site their Mastercard lets you know in 60 seconds if your approved...Should I give that a shot and if it fails just go for the Finance one...or is that a bad thing to do and I should go for the more sure thing of the Finance card? Thanks a lot for the help I appreciate it all. I tried calling Best Buy to ask but its automated and you have to enter an account # which I obviously do not have.
TruHero said:Have you asked Best Buy this question?
Best Buy employee-"Sure! It's one of the best ways to build credit. Your credit will grow even faster if you buy this protection plan and Monster cable!"
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