If a retailer closes only some of its locations but keeps others open, or if it maintains an online presence, it’s possible nothing will change with your store card. But if the store the card is associated with closes altogether, that’s another story.
Your store card closing may not matter to you if you do not have any revolving debt, but you may see an impact to your credit score if you do. This is due to the fact that your credit utilization will go up due to the card closure and the fact that you no longer have any available credit on this account.
below 30%, or $3,000 in total balances for every $10,000 in available credit you have, so you should strive to pay down debt below that amount if you can. If you were earning rewards associated with a store when you used your store card, those rewards will go poof right along with the store itself. If you have the chance to spend any store rewards before your store closes completely, you should try to.
Since store cards tend to come with high APRs—and since you’re no longer receiving benefits from your card like in-store discounts you should strive to pay off closed store card balances as quickly as possible. If you need some time but are tired of paying an exorbitant interest rate, you should also look intoOur Advice for When Your Store Card Closes
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Source: BusinessInsider - 🏆 729. / 51 Read more »