Are you a Kohl customer who just started using Kohl’s card and has been asking the question, does a Kohl’s card affect your credit? keep reading to know the possibilities of Kohl’s card affecting your credit.
Knowing the various factors that can impact your credit is very important to manage your finances.
Here, you will get to know the relationship between a Kohl’s card and your credit score. Also, you will get to know the impact of having a Kohl’s card on your credit.
Does a Kohl’s Card Affect Your Credit?
Yes, Kohl’s card does affect your credit. Also, just like any other credit card, your Kohl’s card is reported to the credit bureaus.
This means that your credit activity with the card is taken into consideration when calculating your credit score.
Impact of a Kohl’s Card on Your Credit
Having a Kohl’s card can affect your credit in several ways, here are some of the ways:
1. Credit Utilization
Your credit utilization plays a significant role in determining your FICO score at Kohl. This ratio represents the amount of credit you are currently using compared to your total available credit.
Furthermore, when you have a Kohl’s card, it adds to your available credit. If you use a small portion of the credit limit responsibly, it can have a positive impact on your credit utilization ratio.
2. Payment History
Another crucial aspect of your credit score is your payment history. Timely payments on your Kohl’s card can demonstrate responsible credit behaviour and positively influence your credit score.
Also, missed or late payments can have a detrimental effect on your Kohl’s card on your credit. In addition, it’s essential to make payments on time to maintain a healthy credit score.
3. Length of Credit History
By having a Kohl’s card and keeping it open for an extended period, you can establish a longer credit history. Interestingly, this credit history can be beneficial for your overall credit profile.
It shows lenders that you have a track record of responsibly managing credit.
4. Credit Mix
Credit mix refers to the different types of credit accounts you have, such as credit cards, and loans. Furthermore, having a mix of credit accounts can positively impact your credit score.
By having a Kohl’s card in addition to other credit cards or loans, you can diversify your credit mix, which can be viewed favorably by lenders.
5. Credit Inquiries
When you apply for a Kohl’s card or any other credit card, a hard inquiry is made on your credit report. However, this inquiry can temporarily lower your credit score by a few points.
It’s important to be mindful of the number of credit inquiries you have, as multiple inquiries within a short period can raise concerns for lenders.
In conclusion, having a Kohl’s card does indeed affect your credit. It can impact various aspects of your credit score, including credit utilization, and payment history.
By using your Kohl’s card responsibly and making timely payments, you can leverage it to build and improve your credit.