Department stores have started providing payment plans and financing options to customers. These options give you the opportunity to buy and pay later. What many don’t know is that these department stores do not issue these cards by themselves, and they have to be careful with issuing the cards so they don’t run a loss. Let’s learn ‘What Credit Bureau does Belk use?’.
This is where credit bureaus come in. Belk credit cards are issued by Synchrony Bank. Before the bank issues a person a card, they contact credit bureaus to find out your credit rating and make their decision based on the credit report sent back. A poor credit rating will lead to an unsuccessful application, while a sufficient rating of 600 and above will have your request granted.
Credit bureaus are companies that carry out credit investigations on customers and advise financial institutions on the person’s credit history, payment behavior, and so on. Belk, through the Synchrony bank, uses TransUnion, Equifax and Experian.
Why does Belk need a Credit Bureau?
Belk is a department store; the store is always on the watch for scammers who would take their cards and can not pay later on. So before you get a Belk card, the issuing company, which is Synchrony bank, will complete a hard pull of your credit report.
If you are judged to be at risk of defaulting on payments as and when due, then the company will deny your card request. It is important to note that the hard pull is usually done by Synchrony bank, because they are the ones that underwrite Belk’s card. Synchrony relies on TransUnion for most of its hard pull reports.
Credit institutions and money lenders use credit bureaus as a sort of security against giving bad loans. These bureaus are hubs of consumer information, and they make this information available to financial institutions to help them make correct loan decisions.
The result of credit inquiries also determines, to a large extent, the terms and conditions that will be included in the loan contract. A person with a poor credit history will probably get a higher interest rate, while a good credit history will grant you more favorable terms.
What credit score is sufficient for a Belk Card?
Belk credit cards are easy to use and you might qualify for an opening or welcome bonus on your first transaction. The card policy is also not as stringent as some other credit cards. Belk’s credit score ranges from 600 to 700. However, before applying for a Belk credit card, we advise that you look at your credit history and rating; you can check your credit score online to verify that you qualify for Belk’s credit card program. Please note that applying with a credit score that is below 600 will lead to a rejection and also reduce your credit rating. The credit card program also offers an exciting opportunity to repair your credit rating.
How many Credit Cards does Belk have?
Belk credit cards program is divided into three tier:
- Regular Card
- Rewards Card
- Premium Card.
You might qualify for an upgrade as you spend and shop. The rationale to qualify for an upgrade is simple: the more you spend, the more your rating improves. And if you spend past a set limit in a calendar year (say $600), then you might be allowed to apply for an upgrade.
When you apply for a loan or credit card at Belk, the issuing authority will order a hard pull of your credit report. Also, since Belk store credit cards are issued by Synchrony bank, you might encounter Synchrony bank on your credit report.
Avoid Hard Pulls
A hard pull is a sort of background check that is usually done on a person’s history following their application for a loan, mortgage and credit card. The pull is done by credit bureaus, who then provide the bank with your credit history and rating.
Having a loan or credit card application rejected due to a bad rating sends a bad signal to other potential creditors.
And when you get too many applications rejected, or too many hard pulls on your credit report, your credit rating will suffer and you will find it hard to receive loans or credit cards from stores and banks.
Conclusion
Belk’s credit cards are not created or issued by Belk themselves, and while the card is of its own brand, they are inadvertently issued by Synchrony bank, who also do all the credit checks to determine if the applicant is worthy of a card.
Synchrony hard pulls are usually carried out by TransUnion and other credit bureaus. Having too many hard pulls on your credit report in a relatively short time will damage your credit rating.
Therefore, before applying for the credit card, you probably should do a pre-qualification exercise. Passing this exercise means you have a high chance of having your application approved.
