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Why department stores ask for major card when applying?


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Hello,

Being tired of just a plain 'ole VISA from my bank, I went out and applied today for store cards from Dillards and Express. The wierd thing was, both stores asked to swipe my VISA as part of the application process. I have only had the VISA about 7 months and that is my only credit. Happily, I was approved for $800 from Dillards and $250 from Express. I just dont see why they couldn't pull my credit report without using a major credit card. Does anyone know?? Is this standard practice with most retailers?

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My Guess ...

Just like signing up for a Video Store rental account at BlockBuster or Hollywood Video, they swipe the card to see if the card is open and there is credit available (usually $1 transaction is posted, then voided).

Could it be the same concept?

(Maybe I should apply for a Target Visa card AT Target?)

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Not sure if this still applies, but Marshall Field's (Retailer's National Bank) would pretty much give you a credit card right there at the store if you had another major card (Visa, MC).

I agree with Doc. Back in the early 90's (when I had good credit) I could walk into any dept. store and show them a Visa and get a credit card by phone without having to fill out long applications. I think they were basically saying "if you're good enough for Visa, you're good enough for us".

:lol:

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Maybe so.. I applied for DH online, hoping they would pull Experian (676) but they pulled EQ (551) This is by far his worst (they have been stubborn about correcting some incorrect stuff :x ) I have heard that in the stores they pull Experian, I don't know how true this is though.

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I'm assuming that like you said, if you are good enough for VISA, you are good enough for them. Large store cards such as these do report to all three bureaus right?

Hmmmmm... I had a Belk card at one time that was a good account, paid as agreed. They only reported to Experien. I also had a Talheimers (later became Hect's) and it was in good standing and it didnt report AT ALL! :( Now, JC Penney....ended up as a CO, and wouldn't you know...it is on all 3 across the board. :(

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When i went to Dillards back in Dec. 2002, all i did was show them my Visa card and they approved me for $1000 right then and there, after 6 months with timely payments it went to $1500 and by dec. 2003 it went up to $3500 automatically. They even offered my a credit line of 6k but i called and told them to leave it at $3500, my balance is at $900 now

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I worked at Old Navy and we swiped the card to match the name that came up on the card to the name that was on the application.

Sometimes they wouldnt even LET people apply unless they had a credit or debit card with them.

Just some FYI

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In the good ole days all you had to do was show a clerk a major cc such as visa/mc/amex and you'd get an instant card just by filling out a short app, it was that easy

no more!!!

Now store cards are the same app that major cc's use and there is no difference, just because you have to major cc means squat!

Why you ask? Because the subprime scum started rising and giving visa/mc to anyone so dept stores soon learned that those customers who opened up store cards were defaulting REALLY at an alarming rate and therefore could no longer trust people just based on carrying a major cc. Before there were subprime issuers, it was incredibly difficult to get a REAL visa/mc and if you had one, it was assumed you were had great or excellent credit.

Don't mean to drag this out, but that is my take on it

________

Kawasaki VN1500G

Edited by sjsharks
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