|
|
|
|
|
FICO® Forums >
FICO Scoring and Other Credit Issues >
Understanding FICO® Scoring >
How many CCs is considered Optimal for FICO Scoring?
|
|
|
|
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
1111mel
Super Contributor
Posts: 1060
Registered: 02-13-2008
Message 2 of 128
Viewed 88,122 times
|
|
|
Do you have balances on them? How long have you had the cards for? This would need to be taken into consideration to give you a better idea.
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09
|
|
|
|
03-13-2008 09:20 AM
|
|
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
pushedtoofar
Regular Contributor
Posts: 50
Registered: 02-28-2008
Message 5 of 128
Viewed 88,103 times
|
|
|
16?????????????????????????? OMG.... I travel out of the country for about 5 -6 months out of the year. My Discover card does not do me much good as a lot of overseas markets do not accept it. I was thinking about getting one more Visa or MC to go with the Capital One MC that I already have. The real problem is that I plan on getting a house in about 6 months. I do not want all these hard inq hitting my reports right now. Especially not a new cc account...
|
|
|
|
03-13-2008 10:01 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
Sylviatob
Super Contributor
Posts: 4596
Registered: 09-14-2007
Message 6 of 128
Viewed 88,098 times
|
|
Yes I understand Discover is not accepted out of the U.S. on a wide spread basis.
IMO, if you travel out of the country often, then yes....adding 1 or 2 more cards, either Visa or M.C. which ever is more widely accepted, is certainly justified.
By the way, which one IS more widely accepted out of country? Just curious.
Now then, regarding house hunting, and mortgages: If you plan on houseshopping in the next 6 months and putting one under contract, DO NOT open any new cc accounts.
Opening new cc's will cause your scores to drop, and 6 months may not be sufficient time for your scores to recover. (that's the general recommendation here). YMMV.
What are your FICO scores, and how old are they? Do you have any baddies on your CR's?
"Never ever, ever be late. Never" (FUTR)
|
|
|
|
03-13-2008 10:14 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
 haulingthescoreup
Moderator
Posts: 22676
Registered: 04-01-2007
Message 7 of 128
Viewed 88,094 times
|
|
Try this:
http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=12673
Once you have good cards with decent CL's, I'd say that you should have three bank cards anyway (CU's are great, if you also have one or two from a "national bank" like Citi, BofA, etc), plus one retail or gas card that does not have Visa, MC, etc on it. The majors should be from different lenders, in case one loses their mind, or goes bankrupt, or is invaded by Martians or something.
When people are building or re-building, they often have more --a lot more! --because the CL's are so pitiful that they need a bunch just to get any momentum going. Once scores start improving and they can get better cards, many start consolidating and closing the doofus cards.
Plenty of people with good scores and reports have a bunch more than that, but if you're not into plastic, the 3 + 1 quality cards ought to work.
---------------------------
Please be friendly, supportive and respectful --and leave your high horse at the door!
Neither a borrower nor a lender be. --Wm. Shakespeare
Credit is a wonderful servant, but a terrible master. Who's the boss --you or your credit?
9/9/2009: EQ 769 - TU 765 - EX ???
Done credit hunting; having fun with credit gardening.
FICO High Achievers - Credit Scoring 101 - myFICO PDF Booklet - Closing Credit Cards - Frequently Requested Threads - Helpful Threads
FTC website: Knee Deep in Debt - FICO Score Estimator
|
|
|
|
03-13-2008 10:21 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
pushedtoofar
Regular Contributor
Posts: 50
Registered: 02-28-2008
Message 8 of 128
Viewed 88,092 times
|
|
|
My scores have a lot of inaccuracies in them right now. They are bad but I am working on them. I have one 120 day late Nov 07 (where from I do not know) that will be taken off this month I have one 30 day late Jan 05 that will be taken off this month I have one of my ex CC on my account (99% util and 1 30 day late Sep 06) that should be coming off I have a GW letter out to Discover to drop the only 30 day late on that account (2 years old) I have a GW letter out to Regions Bank to drop the 60 dya late from 2005 (student loan) I have 3 CAs....two of them are my ex-wifes that I can get no cooperation on.... I have one major derog in that I let my ex's car get repo'd...stupid of me as I ended up paying $$$$ money to get it back. GMAC shows me current for 13 months and notes the account as REDEEMED. I am thinking about trying to GW this...can't hurt. CC util is now 9% down from 79%. Waiting for scores to update. No late payments (after the corrections) for 3 years. Anyway, I expect to see scores in the 650's in a couple of months. (they are too embarassing to show now)
|
|
|
|
03-13-2008 10:27 AM
|
|
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
wfreeman3
Regular Contributor
Posts: 53
Registered: 11-27-2007
Message 11 of 128
Viewed 71,680 times
|
|
|
I can tell you that I had 4. Cancelled one and added 2. No score change whatsoever. TU - 687 EX - 612 EQ- 632
7-01-08 TransUnion 759 Equifax 685 Experian
???
Currently, your credit report does not show any significant negative or derogatory information.
|
|
|
|
03-14-2008 04:31 AM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
Timothy
Moderator Emeritus
Posts: 9591
Registered: 03-19-2007
Message 13 of 128
Viewed 71,671 times
|
|
|
I am down to 10 cards-
8 Visa/MC/Amex
1 Amex charge
1 Store-
A year ago I had 3 cards-
|
|
|
|
03-14-2008 06:24 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
fused
Moderator
Posts: 13940
Registered: 03-12-2007
Message 14 of 128
Viewed 71,628 times
|
|
pushedtoofar wrote:
I have 2 majors with 2500/3800 CLs. Is this enough????
I believe in keeping it simple! If I could do it all over again, this what I would have done:
2-3 Visa or MC
1 Amex or Discover
1 store or gas card
My sister-in-law has a thin file and her scores are in the low 800's. This is all she has:
1 Visa 15% util
1 Citi Sears card 0% util
1 LOC (OD protection) $0 bal
1 paid auto; clean
1 consumer finance loan paid; clean
Her credit history length is 11 years with an average-age not far away. Simple can work!
--------------------------------
Whats In Your FICO Score
Improve Your FICO Scores
Closing Credit Cards
Please Remember To Be Friendly, Supportive And Respectful When Posting In The Forums!
|
|
|
|
03-15-2008 01:39 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
RobertEG
Super Contributor
Posts: 3230
Registered: 03-19-2007
Message 15 of 128
Viewed 71,585 times
|
|
|
Well, I will throw my fish into the pond. It is not the number of CC's that you have, it is rather how you manage them. FICO looks first at overall %util, which has nothing to do with the number of cards you have, but is the most important factor. But the thrust of this thread is not about overall %util, but rather upon the effect of having many cards. So I will regress to the discusssion of having bucho cards, vs. only a few. So, with that in mind, be aware that FICO also looks at %util of each TL. So any card, regardless of percent overall util of all cards, will have a neg effect if its individual %util is high. If you put a charge on a low CL card, it will affect your score more than putting that same charge on a high CL card. Additionally, FICO also looks at the percent of the number of cards (not how much balance is above zero) that have balances at th reporting period. So ten cards, with seven having any balance, regardless of the overall %util or %util or each, is a factor. So, this is my understanding. Having bunches of cards requires bunches of effort to ensure that each maintains a low reported %util, and further that at least half have reported balances of zero. Dat beez a lots a woik! If you have more than a few cards, then you will either need the Mind of Mensa to keep track it all, or be fluid in Excel spreadsheets, and thus be able to monitor each CC before its report date. OK, if that does not convince you, then let me put you at the shopping mall tomorrow....... You see this really neat new gizo. Only $200. You plunk out your wallet of ten cards, and whip out the one on top. It happens to be your new Platinum Blue Neat $300 CL card! Neat, huh? But, bud, you are now instantly at 67% util on that Plat Blue Neat card! It reports. If you had put in on another card, then it would be a different credit score. I dont have the Mind of Mensa, and dont carry my lptop to the mall each day so that I can evalutate the %util of each card, and thus where to place my purchase. I dont want ten cards. So, for me, getting a new, low CL card just is a pain in the butt to control. I dont have the time to absorb further minor credit hemmorhoids treatments that require daily Preparation H. How many cards should I have? The answer is, how much time do you have to maintain them?
Message Edited by RobertEG on 03-18-2008 12:05 AM
Message Edited by RobertEG on 03-18-2008 12:08 AM
Message Edited by RobertEG on 03-18-2008 12:12 AM
Message Edited by RobertEG on 03-18-2008 12:27 AM
Message Edited by RobertEG on 03-18-2008 12:30 AM
Message Edited by RobertEG on 03-18-2008 12:33 AM
Message Edited by RobertEG on 03-18-2008 12:42 AM
|
|
|
|
03-18-2008 12:00 AM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
bgoode
Contributor
Posts: 16
Registered: 08-12-2007
Message 17 of 128
Viewed 68,395 times
|
|
|
Go ahead and get 2 more cards. Atleast one a visa! Im in the navy and use my visa everywhere! But I have 3 visas and one mc. visa 1 $5000 limit visa 2 $7500 limit visa 3 $3000(which when my score boost hopefully up to $5000 and the mc is at $6000 limit. If i didnt have so much ran up on them my score wouldnt be a 632. But get them if you know your a good spender. the 2 inquirys wont hurt you if you havent had to many. good luck
bg
|
|
|
|
03-25-2008 06:50 AM
|
|
|
|
|
|
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
haulingthescoreup
Moderator
Posts: 22676
Registered: 04-01-2007
Message 22 of 128
Viewed 59,173 times
|
|
elliptic wrote:
I agree that closing accounts is not the best idea. Apparently, your CS is affected by the length of time you have had accounts open and the number of inquiries for new accounts. The longer you have had an account open the better. The fewer inquiries the better. I used to close accounts so that I could open others with better rates but this had the effect of lowering my credit score.
There isn't an automatic negative affect on your scores by closing a card, because it should keep reporting for another 10 years (emphasis upon "should"). You don't lose the history until it drops off. It can be pretty painful when that day does come, though.
Where your scores get hurt are when you do have some balances due on other cards, and closing the other cards lowers your overall available credit. This makes your total utilization (total owed divided by total credit limits rise, and that can hurt your score if it moves to a new level.
So if you have 6 cards with a total of $6000 credit limits, and you have total balances due of $2000, you have an overall util of 33% (2000/6000), which is pretty high anyway. If you close two cards, each with credit limits of $1000, and you don't pay down your balances, you suddenly have a util of 50% (2000/4000), and you're going to feel the hurt.
---------------------------
Please be friendly, supportive and respectful --and leave your high horse at the door!
Neither a borrower nor a lender be. --Wm. Shakespeare
Credit is a wonderful servant, but a terrible master. Who's the boss --you or your credit?
9/9/2009: EQ 769 - TU 765 - EX ???
Done credit hunting; having fun with credit gardening.
FICO High Achievers - Credit Scoring 101 - myFICO PDF Booklet - Closing Credit Cards - Frequently Requested Threads - Helpful Threads
FTC website: Knee Deep in Debt - FICO Score Estimator
|
|
|
|
03-25-2008 07:18 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
ChaoticKinesis
Regular Contributor
Posts: 238
Registered: 08-31-2007
Message 23 of 128
Viewed 58,743 times
|
|
Regarding an easy way to manage many cards, some of the banks have an online service that goes through Yodlee that lets you manage all your accounts on a single page that shows all your account balances, transactions, due dates, etc. in real time. I don't know all the banks offering it but I know that BoA and HSBC have it. This is probably going to be the first and last instance of praise HSBC will ever get on these forums, but I have to say that I think the format on their page is outstanding and very convenient.
I get to see all my CL's and how much they're being used, bank acct balances, student loans, utility bills, point balances for various reward programs, Paypal, and many others. I can see all the due dates and amounts in a clearly organized fashion. It shows my new emails in all my email accounts.
So there, you read that right, I'm actually advocating something HSBC.
|
|
|
|
03-25-2008 09:07 PM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
cheddar
Moderator Emeritus
Posts: 7115
Registered: 09-29-2007
Message 25 of 128
Viewed 58,580 times
|
|
|
elliptic wrote:
I'd be inclined to agree with you if I didn't pay off all of my cards each month but since I do, closing CCs can't change my utilization percentage. Closing cards that I had for a long period of time affected the average length of time I have had (open) credit cards. A lower average lowered my score.
Closed accounts continue to count towards average age or as long as they are on your reports.
Unless you pay your cards off each month before the statement cuts, then your utilization would in fact be affected, because those cards will be reporting a balance. FICO doesn't calculate your utilization based on the balance you carry, it calculates your utilization based on the balances reported, which are almost always the statement balances. FICO doesn't care whether those balances are paid in full each month or not.
Once you close a card, its CL stops counting towards that utilization calculation, which automatically equates to higher utilization.
The score drop you referred to was not due to lower average age, but was most likely due to higher utilization.
Edited to clarify this point:
elliptic wrote:
Closing cards that I had for a long period of time affected the average length of time I have had (open) credit cards. A lower average lowered my score.
"Average length of time of open credit cards" is not a metric that FICO uses. Neither is "average age of open accounts" or anything to that effect. There is only "average age of accounts," which includes all accounts, open and closed.
Message Edited by cheddar on 03-26-2008 01:40 AM
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip.  )
|
|
|
|
03-25-2008 10:34 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
vulgy1
Visitor
Posts: 5
Registered: 09-27-2007
Message 26 of 128
Viewed 58,172 times
|
|
|
My two cents: For FICO scoring, as I understand it, is about utilization and age, so the number of accounts will not matter. However, hasn't Capital One been bad about reporting your Max limit? This will hurt your score if they don't. As far as getting a mortgage (need help from a mortgage loan officer) doesn't having too many cards, with a high overall credit limit, hurt your chances on getting a mortgage?
Message Edited by vulgy1 on 03-26-2008 06:11 AM
|
|
|
|
03-26-2008 06:06 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
cheddar
Moderator Emeritus
Posts: 7115
Registered: 09-29-2007
Message 27 of 128
Viewed 58,126 times
|
|
|
Hi, vulgy1, and welcome to the FICO Forums!
vulgy1 wrote:
My two cents: For FICO scoring, as I understand it, is about utilization and age, so the number of accounts will not matter.
Number of accounts does matter as well, but only once you have very many accounts.
Also, the first few revolving accounts one gets will most likely help one's score a great deal.
vulgy1 wrote:
However, hasn't Capital One been bad about reporting your Max limit? This will hurt your score if they don't.
Capital One used to not report credit limits, which meant that FICO would use the "High Balance" field as a substitute for the credit limit when determining utilization. This is no longer the case, however, as Capital One started reporting limits on all their cards as of Sep. 2007.
vulgy1 wrote:
As far as getting a mortgage (need help from a mortgage loan officer) doesn't having too many cards, with a high overall credit limit, hurt your chances on getting a mortgage?
Sometimes, but as long as you have no to low balances on those cards and an excellent history of payments, it shouldn't usually be a problem.
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. )
|
|
|
|
03-26-2008 06:28 AM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
cheddar
Moderator Emeritus
Posts: 7115
Registered: 09-29-2007
Message 29 of 128
Viewed 57,622 times
|
|
|
elliptic wrote:
Thanks for the clarification cheddar. I have been paying off my balances before the statement cuts. That must be the reason for the inactive status on my cards. Regarding your comment: "The score drop you referred to was not due to lower average age, but was most likely due to higher utilization.", I still don't understand since I do pay off my cards before statement dates so it can't be higher utilization.
In that case, my statement doesn't apply. I was assuming that you were letting balances report, which was a bad assumption on my part.
I still maintain, however, that your score drop didn't have anything to do with average age changing due to closing an account (again, assuming that the account continued to report after it was closed). There are a number of things that can cause an unexpected score drop, like number of accounts with balances, for example. It could also be due to going from having small overall utilization (less than 10%) to 0% utilization. (Yes, you can actually take a hit on your score by letting all zero balances report.)
Do either of those apply?
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. )
|
|
|
|
03-26-2008 10:32 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
HawgDude
New Visitor
Posts: 1
Registered: 03-27-2008
Message 30 of 128
Viewed 56,462 times
|
|
|
My wife and I recently started a focused effort to raise our scores using the MyFico ScoreWatch product as our tool of choice to monitor progress. We had the usual towering stack of Chase, Citi, major and not so major store cards, etc. We paid off and closed all keeping only my 34 year old Sears acct., our primary bank Visa, one Branded Chase Visa and a Branded Citi MC I use for Business. After an initial dip due to all the acct. status changes both scores climbed steadily in the last four weeks... I started at 728 and am currently at 797; My wife started at 734 and is currently at 807. These are only the Equifiax scores from MyFico and I understand that score tends to be the lowest of the three! We have not paid for scores from the other bureaus yet... We'll wait another month or two on this and see what our monthly activity does to add to it. We have started using the branded Chase card (for points) for everyday purchases and paying it off every two weeks. The regular activity on the business card keeps its activity constant and updating as well. Paying the CC's every two weeks is a trick I learned from a radio show on the topic one day. Not paying any more, just make the payment in two payments throughout the month. In my case it is the balance I see in Money at each pay cycle. I would say we have found a good mix of CC qty. & activity to add to our scores!
|
|
|
|
03-27-2008 10:26 AM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
cheddar
Moderator Emeritus
Posts: 7115
Registered: 09-29-2007
Message 32 of 128
Viewed 54,893 times
|
|
SamSausage wrote:
Strange I just signed up for the service to check my report and I have EQ 763 The only thing bad is 2 30 day late pays in 2000 that shouldn't be there since it was a bank error. Currently I have 0 Credit Cards, I closed my last card early 07. I just paid off my car in the beginning of Feb, and that's been closed, so overall I owe $0 and have 0 open Credit accounts. No Mortgage, 0 lines of Credit. I guess my score will start dropping now that I don't owe any money at all? Is it just me or is the only way to have a high FICO score by borrowing money and paying the bank interest? (Sounds like a scam to me) I'm confused, why do I want a high score? So I can borrow more money? For the opportunity to get into debt? Maybe I'm missing something here, how does it benefit me? I guess I don't see the point to have 16 credit cards just to try and get my FICO score up. I'm not making any money here, the bank is.
No, you don't have to pay any interest to have a high FICO score.
Credit cards only require you to pay interest if you revolve a balance on them from one month to the next. FICO will still give you points for having the account and for your good payment history on that account even if you don't carry a balance from month to month.
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. )
|
|
|
|
03-27-2008 11:00 AM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
MidnightVoice
Super Contributor
Posts: 7572
Registered: 03-25-2007
Message 34 of 128
Viewed 54,863 times
|
|
|
SamSausage wrote:
I wonder what percentage of users pay off the entire balance every month and never paid interested or service charges over an extended period of time. Not to mention the time spent balancing and paying it every month.
Me, - except for when I travel overseas or by things from overseas and have to pay conversion fees.
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
|
|
|
|
03-27-2008 11:27 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
SamSausage
Visitor
Posts: 6
Registered: 03-27-2008
Message 35 of 128
Viewed 54,854 times
|
|
MidnightVoice wrote:Me, - except for when I travel overseas or by things from overseas and have to pay conversion fees.
That would make you one of the few users that does pay the balance in full every month and never missed a payment. The vast majority of users do not. It's definitely not impossible, but very unlikely. Kudos to you, that's quiet a feat! When I had cards I tried to pay them of every month but over an "Extended Period of Time" I did pay interest because there where a few months where I did not. 
|
|
|
|
03-27-2008 11:40 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
cheddar
Moderator Emeritus
Posts: 7115
Registered: 09-29-2007
Message 36 of 128
Viewed 54,829 times
|
|
|
You'll find that many folks on this forum are not like the public at large when it comes to managing their credit card accounts. I, for example, have never paid interest on any credit card. Ever. I know many others here can say the same thing. Not only do I not pay any interest, but I actually routinely pay off my credit cards BEFORE the statement even generates so as to control the balance that those cards report to the CRAs. I also use my credit cards for every one of my everyday expenses so that I can collect rewards on money I would be spending anyway. In the long run, this costs me exactly $0. There are many, many others here who play that same game.
Your point is well taken that the non-credit-savvy general public does not understand the rules of that game, for the most part. But that's what this forum is all about.
Message Edited by cheddar on 03-27-2008 03:01 PM
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. )
|
|
|
|
03-27-2008 12:00 PM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
haulingthescoreup
Moderator
Posts: 22676
Registered: 04-01-2007
Message 38 of 128
Viewed 54,461 times
|
|
SamSausage wrote:
That would make you one of the few users that does pay the balance in full every month and never missed a payment. The vast majority of users do not. It's definitely not impossible, but very unlikely. Kudos to you, that's quiet a feat! When I had cards I tried to pay them of every month but over an "Extended Period of Time" I did pay interest because there where a few months where I did not.
We're actually not that rare! I wish I could remember the figure, but it was something like 40% of American consumers never carry a balance, many of the rest carry a balance on one or two cards, and a relatively small remainder carry balances on nearly all or all of their cards.
I use my credit cards as a version of debit cards, I guess: I pay each one off online every week or 10 days. This takes almost no time at all --think of the Bank of America commercials with the young woman doing her BillPay while the popcorn is in the microwave. The CCC's are perfectly happy that I do this, since I use them for every possible purchase I can, so they're making money off a me via transaction fees. But if they require interest from me, we'll have to sever the relationship. I haven't carried balances in a good long while, but I do now on one card. But it's a 0% balance transfer, so I still don't pay any CC interest.
I'm glad to know the option of carrying balances is there, if I have some sort of financial crisis, but I regard credit as financial insurance: have it, and hope you don't need it.
---------------------------
Please be friendly, supportive and respectful --and leave your high horse at the door!
Neither a borrower nor a lender be. --Wm. Shakespeare
Credit is a wonderful servant, but a terrible master. Who's the boss --you or your credit?
9/9/2009: EQ 769 - TU 765 - EX ???
Done credit hunting; having fun with credit gardening.
FICO High Achievers - Credit Scoring 101 - myFICO PDF Booklet - Closing Credit Cards - Frequently Requested Threads - Helpful Threads
FTC website: Knee Deep in Debt - FICO Score Estimator
|
|
|
|
03-28-2008 04:29 AM
|
|
|
|
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
cheddar
Moderator Emeritus
Posts: 7115
Registered: 09-29-2007
Message 42 of 128
Viewed 54,710 times
|
|
smallfry wrote:
watchnerd wrote:
smallfry wrote:
Optimum is 5 credit cards. 1 store card. 1 mortgage and 1 car loan. Utilization on all cards between 1-4%. Let 2 cards report a balance every month. Never pay anything late.
On what are you basing the 5 card assumption?
I've heard some say 2, 3, or 4 cards.
Nerd it is easier to stay within the not letting more than 40% of open accounts report a balance if you have 5 cards. Letting 2 report is already at that threshold.
I agree with smallfry. With only two open credit cards, you can't let less than half report a balance while at the same time letting at least one report a balance, both of which are optimal for FICO scoring.
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. )
|
|
|
|
03-31-2008 05:15 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
Timothy
Moderator Emeritus
Posts: 9591
Registered: 03-19-2007
Message 43 of 128
Viewed 54,682 times
|
|
|
My .02 cents-
I a have
Open accounts-
1 mortgage
1 heloc (igored)
1 Auto (under 50% utl)
2 SL's
1 Charge card (amex green)
2 Store cards ( Kay and an Home depot not yet reporting)
Amex Delta, Blue Cash
Wamu 1 Visa 1 MC
Cap one 1 MC
Junny 1 MC
2 CU Visa's
15 of 16 Open accounts reporting- I don't get "too many accounts with a balance until 10"
So if you subtract the mortgage and Heloc -
14 - 9/14 =64% of accounts with balance
Just cards = 10
So the 50% of CC's rule still applies=
|
|
|
|
03-31-2008 07:40 PM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
mike00
Visitor
Posts: 3
Registered: 01-24-2008
Message 45 of 128
Viewed 54,217 times
|
|
|
"Your point is well taken that the non-credit-savvy general public does not understand the rules" I don't mean to get off topic, but that comment struck me a little. It is nice that you are in a position to not have to carry a balance, but I wouldn't say those of us that do are not credit-savvy. When that car repair comes up or vet bill arrives, there are two options. Not paying it, or going into debt. While I may not want to pay interest on a credit card, I think the option of not paying my bills is not an option.
|
|
|
|
04-06-2008 06:18 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
ChumChurum
Contributor
Posts: 44
Registered: 08-07-2007
Message 46 of 128
Viewed 54,153 times
|
|
|
RobertEG wrote: Well, I will throw my fish into the pond. It is not the number of CC's that you have, it is rather how you manage them. FICO looks first at overall %util, which has nothing to do with the number of cards you have, but is the most important factor. But the thrust of this thread is not about overall %util, but rather upon the effect of having many cards. So I will regress to the discusssion of having bucho cards, vs. only a few. So, with that in mind, be aware that FICO also looks at %util of each TL. So any card, regardless of percent overall util of all cards, will have a neg effect if its individual %util is high. If you put a charge on a low CL card, it will affect your score more than putting that same charge on a high CL card. Additionally, FICO also looks at the percent of the number of cards (not how much balance is above zero) that have balances at th reporting period. So ten cards, with seven having any balance, regardless of the overall %util or %util or each, is a factor. So, this is my understanding. Having bunches of cards requires bunches of effort to ensure that each maintains a low reported %util, and further that at least half have reported balances of zero. Dat beez a lots a woik! If you have more than a few cards, then you will either need the Mind of Mensa to keep track it all, or be fluid in Excel spreadsheets, and thus be able to monitor each CC before its report date. OK, if that does not convince you, then let me put you at the shopping mall tomorrow....... You see this really neat new gizo. Only $200. You plunk out your wallet of ten cards, and whip out the one on top. It happens to be your new Platinum Blue Neat $300 CL card! Neat, huh? But, bud, you are now instantly at 67% util on that Plat Blue Neat card! It reports. If you had put in on another card, then it would be a different credit score. I dont have the Mind of Mensa, and dont carry my lptop to the mall each day so that I can evalutate the %util of each card, and thus where to place my purchase. I dont want ten cards. So, for me, getting a new, low CL card just is a pain in the butt to control. I dont have the time to absorb further minor credit hemmorhoids treatments that require daily Preparation H. How many cards should I have? The answer is, how much time do you have to maintain them?
It sounds like you understand the effect of different factors on your score. But may I suggest that you can try to take advantage of the scoring system so that having many cards will work out in your favor, and not against you. For example, - get many cards, use them once or twice, and sock-drawer them for a while, then use again, - get cards with high utilization, not some $300 midgets. Why do you need to even carry 10 cards? Carry 2-3, but keep the other umpteen at home. Also, you might want to check out www.yodlee.com. One click, and you get instant updates of all your account balances. Heck, you could manage 100 cards, if you wanted to, with yodlee. |
|
|
|
04-06-2008 09:32 PM
|
|
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
haulingthescoreup
Moderator
Posts: 22676
Registered: 04-01-2007
Message 49 of 128
Viewed 51,970 times
|
|
Pull up all your CC accounts online. With the exception of HSBC/Orchard and AmEx cards, they all seem to report on the date that your statement posts, and they report the balance that's on there. Check previous months as well, because many statement dates wander around by a couple of days each month (1/10, 2/8, 3/11, 4/9, etc.)
Make a note of each card's expected statement date. Five days beforehand, go online and pay. I prefer to pay on the actual card site, because the payment generally posts that very day. If you pay from your bank site, there might sometimes be a delay of a couple of days. Check again the day before you think the statement will post to see if any lolly-gaggers popped up and pay again if necessary. Wait for the statement to drop. If you don't want to carry a balance over to the next month and pay interest, go ahead and pay it off then, after the statement has dropped and before the due date.
Many people get their statement dates changed to where they all report on the same day every month, or maybe half in the first part of the month and the other half in the second. This makes it easier to manage the early payments. It can be fun trying to change this, because usually CSR's are asked to change the due date, not the statement date, and this request can confuse them!
Unless you have really high scores, most people find that they get the best results by only letting one or two cards report balances under 10% of the card's CL, and the rest report $0. You can still use all your cards as much as you like through the month, as long as you do the pay-down before the statement date.
This system puts you in charge of your util.
---------------------------
Please be friendly, supportive and respectful --and leave your high horse at the door!
Neither a borrower nor a lender be. --Wm. Shakespeare
Credit is a wonderful servant, but a terrible master. Who's the boss --you or your credit?
9/9/2009: EQ 769 - TU 765 - EX ???
Done credit hunting; having fun with credit gardening.
FICO High Achievers - Credit Scoring 101 - myFICO PDF Booklet - Closing Credit Cards - Frequently Requested Threads - Helpful Threads
FTC website: Knee Deep in Debt - FICO Score Estimator
|
|
|
|
05-11-2008 11:09 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
Boscoe
Super Contributor
Posts: 660
Registered: 09-11-2007
Message 50 of 128
Viewed 51,741 times
|
|
|
Controlling UTL is a good idea, but doing so is not really necessary unless you are within 60-90 days of applying for credit. If the goal is simply to maximize credit scores at all times, even when you have no plans to apply for credit, then Hauling's method is appropriate.
|
|
|
|
05-12-2008 05:15 PM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
haulingthescoreup
Moderator
Posts: 22676
Registered: 04-01-2007
Message 52 of 128
Viewed 49,588 times
|
|
There seem to be so many situations these days where it doesn't feel like you're applying for credit, but it's there. For instance, we've been wanting to change our insurance for a half a year now, but we had to get the collections off of DH's accounts. We're going with USAA, and I already saw where I was softed just after playing around on the website.
At first I thought that the pay-early method was insanely complicated, but I got used to it after the second month. I never was one to carry balances, so it didn't take a big change in behavior.
I do realize that for many people, this is overkill, but I've also seen where it helps people change their attitudes toward credit from "how much debt can I carry and get away with?" to "how low can I get these suckers?" And that's a pretty useful alteration of mind-set, IMO.
I've also been burned by both TransUnion and WFNNB/J.Crew in delayed updates, so even though util is a relatively quick-turnaround, it's still not something you can whip around in a week.
---------------------------
Please be friendly, supportive and respectful --and leave your high horse at the door!
Neither a borrower nor a lender be. --Wm. Shakespeare
Credit is a wonderful servant, but a terrible master. Who's the boss --you or your credit?
9/9/2009: EQ 769 - TU 765 - EX ???
Done credit hunting; having fun with credit gardening.
FICO High Achievers - Credit Scoring 101 - myFICO PDF Booklet - Closing Credit Cards - Frequently Requested Threads - Helpful Threads
FTC website: Knee Deep in Debt - FICO Score Estimator
|
|
|
|
05-12-2008 05:52 PM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
TL2
Visitor
Posts: 1
Registered: 06-12-2008
Message 54 of 128
Viewed 46,451 times
|
|
|
Hi Vulgy1, I do mortgages for the largest online lender in the U.S. and the number of credit cards that one has will NOT at all damage your chances of getting a mortgage (unless of course it is hurting your CS). Mortgage underwriters look at 4 things when making the approve/deny decision. 1) Income (DTI) which is simply a ratio that measures monthly debt (which appears on your credit report) to monthly income. You want to keep that under 50% INCLUDING your mortgage payment. 2) Property (LTV) measures the amount of the loan vs the value of the home or purchase price. You need to keep this under 90% **However you can do 100% LTV (zero down) if you use an FHA Loan for the PURCHASE of a home. 3) Assets - Simply the amount of liquid assets you can prove (stocks, bonds, 401(k), 403(b), checking account, etc. You want to make sure that you have at least 2X your mortgage payment, you will need more if your credit score is under 680. 4) Credit - Credit Score. We will use the midscore (Equifax, Transunion, Experian) of the weakest borrower. There is a new scoring system when it comes to mortgages, credit, income, etc. The scale is simply based from 0 to 100%. 100% is nearly impossible to get. paste this link into your browser to check it out. It's a great tool for anyone hoping to refinance or buy a home. click here |
|
|
|
06-12-2008 04:14 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
jaramill
Contributor
Posts: 12
Registered: 04-17-2007
Message 55 of 128
Viewed 39,139 times
|
|
Cheddar and haulingthescoreup are "dead-on" with their posts. You have to "work" the system in your favor. Once I became clear of all credit card debt, I was now on top.
I actually 5 cards:
1 debit card (WF)
1 credit card (WF)
1 gas card (ExxonMobil)
1 credit card (ExxonMobil - Citi)
1 credit card (Chase)
I use Chase exclusively to pay my monthly bills (cell, satellite, etc...) all of of which are auto-pay. The card has a low limit ($700) but since that's just enough I'm always at the max.
Why?
Because then I pay IN FULL and get max dollar rewards in return. So I pay the minimum balance (to avoid being late) let's say $20, then 2 days before the closing statement date, I pay in full. Now I have a $0 balance. I let that report to the bureaus. Then the next statement shows, I have a min due of $0 due on this date.
So now when all the next month's bills charge, I pay almost in full not on the due date (don't have to since it's $0) but 2 days before the statement date.
Why "almost" in full?
Well I subtract from the total balance the amount of "rewards $" I have, so on the statement date, my balance goes from let's say $700 to $695, leaving a $5. But on statement date, my $5 credit is automatically applied thus.....a $0 balance.
And so the cycle continues. I'm getting free $ from Chase. Same applies for ExxonMobil credit card (not gas card) which I use to buy gas at their stations (3% rebate, 1% at non-Exxon/Mobil). Their gas card offers no rebates. So when i did this. Right after the latest statement date out of all my CC passed, I then ordered my FICO report just to see and sure enough, all balances were at or close to $0 and boy did I have a HUGE jump. All in the low to mid 700s.
Learn to play this game and you'll be on top. And I agree about playing it all the time even if you're not applying for credit in the near future.
|
|
|
|
08-26-2008 01:11 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
mixed
Visitor
Posts: 7
Registered: 11-30-2007
Message 56 of 128
Viewed 34,958 times
|
|
|
I agree, it doesn't matter as much how many cards you have, but how you use them. I have collected way too much debt, but am in the process of paying it down. I have many cards that I no longer use because of high interest rates. I currently use 5 cards. One monster (highest rate) holding debt that I am trying to pay off ASAP, another with debt at a better rate but pretty full, two cards that have reward programs that I use for small bills and purchases that I try to pay off each month and one that has "for the life of the loan" very low interest balance transfers (but a high under lying rate) which I keep pretty full but never risk going over my limit (its virtually all low rate balance transfers). I am also now trying to save for the big bills like car insurance in which you can save big money by paying in full for six months (and taking advantage of the month with an extra pay day). Despite having too much debt for my income, I have never been late, never missed a payment and my credit score is pretty good. Just a warning about balance transfers, there often is a 3% transaction fee that you need to calculate into your decision. Also very important is the interest rate of the card in general especially if you have debt on the card. While you are paying off your balance transfer the higher rate debt on the card will continue to grow. Also if you don't pay off the balance transfer before the rate expires, whatever is remaining will go to the higher standard rate. Finally, relying on "stealing from Peter to pay Paul" is an easy way to get yourself into deeper debt. You should try to only use balance transfers that maintain a lower interest rate for a long time and only to reduce the interest rate on your debt. Note: Because of sometimes lax or mistimed reporting one credit card can show a balance transfer (or other transaction) as already happened and another not, so it can make you have more debt than you actually have.
|
|
|
|
10-15-2008 08:48 AM
|
|
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
debtisgood
Super Contributor
Posts: 1197
Registered: 03-25-2008
Message 59 of 128
Viewed 34,765 times
|
|
Kurt6344 wrote:
If 4-5 or more credit cards is optimal, why did my score drop when opened one? I currently just have received a third one
New Accounts Gain Points for 2 reasons: 1) It reduces your utility (if your utility is ultra low now then this is not a real help) or 2) It increases your credit mix (if you already have 2 revolving cards you are not improving your mix) New Accounts Gain Points for 3 reasons: 1) New Credit Category takes a small hit (ALWAYS) and the effect lessens over the year 2) Your average age of accounts decreases and you lose points (USUALLY - if the effect is so slight it doesn't change your average number of years it may only delay score increases not cause an immediate drop) 3) An inquiry for requesting the account takes away points (ALWAYS) and the effect stays for a year
|
|
|
|
10-15-2008 02:43 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
haulingthescoreup
Moderator
Posts: 22676
Registered: 04-01-2007
Message 60 of 128
Viewed 34,729 times
|
|
Well, a new inq doesn't always mean lost points. I've seen that on my EQ, where I took an initial hit for 2 inqs, no additional hit for the 3rd, and got hit again for the 4th. I'm guessing that there might be something like 0-1 inqs, no hit, 2-3 a hit, add a 4th and get a new hit, and so on.
Even if a 3 revolving account doesn't increase credit mix, most people find that the scoring formula "wants" that third card. You can see this on the sim --click "apply for and get a CC for ___" (pick a figure), and some people get an increase projected. My younger daughter's scores went up immediately when she got her third open account.
So it's not just the possibility of your util being helped; sometimes it's because your scores do better with that third account.
---------------------------
Please be friendly, supportive and respectful --and leave your high horse at the door!
Neither a borrower nor a lender be. --Wm. Shakespeare
Credit is a wonderful servant, but a terrible master. Who's the boss --you or your credit?
9/9/2009: EQ 769 - TU 765 - EX ???
Done credit hunting; having fun with credit gardening.
FICO High Achievers - Credit Scoring 101 - myFICO PDF Booklet - Closing Credit Cards - Frequently Requested Threads - Helpful Threads
FTC website: Knee Deep in Debt - FICO Score Estimator
|
|
|
|
10-15-2008 04:48 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
AmyBoo
Valued Contributor
Posts: 328
Registered: 09-28-2008
Message 61 of 128
Viewed 34,395 times
|
|
|
I hope this can help in the great "How Many Debate" Me last week 1 HSBC Master Card - $700 CL ($500 bal will be $350 once it updates) 1 Dillards store card - $850 CL ($0 Balance) 1 Macy's store card - $850 CL (Opened 2002 and unused since 2004, I thought it was closed) 4 Student Loans - $8,229 1 Auto Loan - $8353 (from $12,375) 1 30day late in 2005 on the dillards and a string of 90 day lates on 3 of the student loans (Note: open all your statements even when your student loans are in deferment because if you aren't psychic it is hard to guess when they will come out  ) Everything else is all good Not a lot going on I know but my Credit History is 12yrs3mos old and my AAofA is 8 years
This week I have had 6 inquires (as many as 6 and as little as 3 on each but 6 in all) I had one new account a Barklays Master card CL$700 Equifax is the only one I have a FICO score for and it jumped 20 points. My TransUnion FAKO didn't change (but is showing the new card) Experian FAKO went up 18 points I will be buying my TU and EX Ficos next Friday. I have one more credit card I have been approved for (Capital One CL $1000) that hasn't hit yet I will let you know what the change is when it does but that will be all the credit shopping I feel I need to do for a while. Edited to add more spaces. My post was a BLOB! Message Edited by AmyBoo on 10-18-2008 12:49 PM
|
|
|
|
10-18-2008 10:46 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
WYjeep
Contributor
Posts: 15
Registered: 09-22-2008
Message 62 of 128
Viewed 34,051 times
|
|
|
I work as a loan officer for a Credit Union. We pull exclusively Experian here, but honest to God, I've seen a score of 815 without any CC's, just an mortgage with 180mo+trade and an auto loan. 75% of the scores in the 800's I've seen, have had 1-3 cards. I've seen an 815 with a home loan, auto loan, and a Sam's club card at 15% util. I'm sure by have a good CC mix you can improve your score, but honestly I think payment history is the biggest factor. Personally, I have not seen a score in the 800's that had more than 3 cards yet. Most people with 5-15 cards have been in the 780's max (783 is a very popular number). I'm not saying you can't have an 800 with more than 3 cards, but personally that's what I've noticed (I've probably pulled about 8 scores 800+). I've also seen a 25 y/o with one major CC at 5% util with a 731 with only 27mo trade history!
|
|
|
|
10-21-2008 10:09 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
Flo
Contributor
Posts: 42
Registered: 02-28-2008
Message 63 of 128
Viewed 33,965 times
|
|
WYjeep wrote:
I work as a loan officer for a Credit Union. We pull exclusively Experian here, but honest to God, I've seen a score of 815 without any CC's, just an mortgage with 180mo+trade and an auto loan. 75% of the scores in the 800's I've seen, have had 1-3 cards. I've seen an 815 with a home loan, auto loan, and a Sam's club card at 15% util. I'm sure by have a good CC mix you can improve your score, but honestly I think payment history is the biggest factor. Personally, I have not seen a score in the 800's that had more than 3 cards yet. Most people with 5-15 cards have been in the 780's max (783 is a very popular number). I'm not saying you can't have an 800 with more than 3 cards, but personally that's what I've noticed (I've probably pulled about 8 scores 800+). I've also seen a 25 y/o with one major CC at 5% util with a 731 with only 27mo trade history!
That's interesting. Well I had a score of 711 with 12 months of history: 2 CCs. My third card, the Amex, pulled me down do 645. The 4th CircuitCity card costed me only 2 points.
FICOs April'09 : TU 743, EQ 725, EX:733
FICOs March'09: TU 694, EQ 725, EX 733
|
|
|
|
10-22-2008 05:40 PM
|
|
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
leggo
Contributor
Posts: 30
Registered: 11-16-2008
Message 66 of 128
Viewed 31,772 times
|
|
|
Good question. Depends on the bureau I guess. I have one BofA with a $27,300 CL and an Amex Blue with $10,000 CL; both with zero balances. When I pull my TU, it dings me for not having enough "Premium Bankcard Accounts". WTF? I do think that the bureaus like to see you in debt; if so, they score you higher. But for me, my debt load is inversely proportional to my quality of sleep.
|
|
|
|
11-16-2008 10:20 PM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
Not_the_Point
Regular Contributor
Posts: 180
Registered: 01-20-2008
Message 68 of 128
Viewed 31,544 times
|
|
|
I've been going with the 2 CC's (BoA and WaMu) and 1 Store Card(Sears) set-up myself. One of your Credit Cards should also be from a major national bank like Bank of America or Chase. I've considered getting one more credit card, but undecided as to which one to get. I had planned on getting an AMEX but given how unpredictable they are it seems more a liability than an asset to me. PenFed sounds really good though... Message Edited by Not_the_Point on 11-18-2008 10:14 PM
1/21/08 - [TU 748][EQ 738][EX 711]
|
|
|
|
11-18-2008 10:13 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
RLL1171
Regular Contributor
Posts: 73
Registered: 12-09-2008
Message 69 of 128
Viewed 29,221 times
|
|
|
Hey pushedtofar! I feel you. I haven't ben divorced or anything like that, but the damage to my credit i thought was un-repairable. I was wrong. I did bounce back and I believe you will too. I was in the low 400's and now on my way to the 700 Club. I am rooting for you!
FICO 12/9/08 TU 648 EFX 640 EXP 618
FICO 12/17/08 TU (?), EFX 635
FICO 12/24/08 TU (?) EFX 616
FICO 1/21/09 TU (?), EFX 623
FICO 3/3/09 TU 654, EFX 700
FICO 4/9/09 TU 655, EFX 705
|
|
|
|
12-16-2008 05:03 PM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
mysticalgrrl
New Visitor
Posts: 1
Registered: 01-29-2009
Message 71 of 128
Viewed 23,299 times
|
|
|
Hiya... not sure if anyone else has replied to this as I haven't read the rest of the responses yet, but I lived in England for almost ten years and have traveled quite extensively. Discover is accepted in most of Europe at least. I can't say for sure that it is accepted everywhere in Europe, but I have never encountered anywhere that it is NOT accepted. As far as which other card is the most popular, Visa wins hands down. I personally prefer Mastercard ( always have, though I don't know why) but Visa is definitely the most widespread worldwide. Also, Europe has a type of card that is just starting to come over here to the USA. I think it will be interesting to see how that goes on. It used to be a card called 'Switch' or 'Solo' in the UK, but now its backed by Cirrus, so I can actually use my Switch card over here in the United States where companies accept Cirrus. Mostly this is Wal-mart and a few other places that I've found here and there... but yeah, it will be interesting to see how it progresses. anyway, just had to stick my nose in  Sara
|
|
|
|
01-29-2009 03:24 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
Tuscani
Moderator
Posts: 6450
Registered: 03-29-2007
Message 72 of 128
Viewed 23,212 times
|
|
|
That "perfect" mix is like the Loch Ness monster, we've heard about it, but there seems to be no definitive answer as to what it truly is.
IMO, the perfect mix includes at least one of the following: Open
Revolving
Installment
Mortgage
--------
CREDIT SCORING 101 - FREQ REQ THREADS - GW - PFD - RECONN
|
|
|
|
01-30-2009 07:47 AM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
smallfry
Super Contributor
Posts: 3994
Registered: 04-20-2007
Message 74 of 128
Viewed 18,601 times
|
|
WYjeep wrote:
I work as a loan officer for a Credit Union. We pull exclusively Experian here, but honest to God, I've seen a score of 815 without any CC's, just an mortgage with 180mo+trade and an auto loan. 75% of the scores in the 800's I've seen, have had 1-3 cards. I've seen an 815 with a home loan, auto loan, and a Sam's club card at 15% util. I'm sure by have a good CC mix you can improve your score, but honestly I think payment history is the biggest factor. Personally, I have not seen a score in the 800's that had more than 3 cards yet. Most people with 5-15 cards have been in the 780's max (783 is a very popular number). I'm not saying you can't have an 800 with more than 3 cards, but personally that's what I've noticed (I've probably pulled about 8 scores 800+). I've also seen a 25 y/o with one major CC at 5% util with a 731 with only 27mo trade history!
I don't doubt what you're saying at all. I have noticed that the number 1 ding I always see is the fact that I have no mortgage showing on my Experian report. This even with a 9 year old public record. I have closed quite a few cards the past six months. If I was sure i wouldn't damage my scores I would close one or even two more. The problem comes in trying to let less than 40% of open accounts report a balance. I'm not sure whether I would hinder my progress if less accounts contribute to my payment history. So I guess for now I will just leave it be.
|
|
|
|
03-14-2009 07:28 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
CreditCard101
Valued Contributor
Posts: 305
Registered: 02-23-2009
Message 75 of 128
Viewed 18,586 times
|
|
|
I currently carry: Blue Sky AMEX $2,000 CL Bank of America Visa $500 CL (Secured) Credit Union Mastercard $6,500 CL Just Apply For: Citi Mastercard (Hope to get approve for one) Bank of America Visa (Unsecured, hope to get approve for) Just Closed Account: Capital One Visa $3,500 CL (Closed Account) Dont like Cap One that much ..Message Edited by CreditCard101 on 03-14-2009 09:37 AM
|
|
|
|
03-14-2009 09:35 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
smallfry
Super Contributor
Posts: 3994
Registered: 04-20-2007
Message 76 of 128
Viewed 18,581 times
|
|
CreditCard101 wrote:
I currently carry: Blue Sky AMEX $2,000 CL Bank of America Visa $500 CL (Secured) Credit Union Mastercard $6,500 CL Just Apply For: Citi Mastercard (Hope to get approve for one) Bank of America Visa (Unsecured, hope to get approve for) Just Closed Account: Capital One Visa $3,500 CL (Closed Account) Dont like Cap One that much ..Message Edited by CreditCard101 on 03-14-2009 09:37 AM
I did some of that myself a couple of years ago and regret it now. The Cap One card works ya know. Take it from me you are hurting your score applying and getting approved for new credit. Lowering your average age can take years to recover from and in the end it's just another piece of plastic in your wallet.
|
|
|
|
03-14-2009 09:45 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
jimeh
Visitor
Posts: 4
Registered: 02-22-2009
Message 77 of 128
Viewed 18,562 times
|
|
|
Thanks. I don't know how to use the forums and all yet. I read on one that a guy heard a radio show talk about double reporting (I assume bimonthly) and gave it a shot. He sounded like he was pretty happy with it, but I haven't been able to find any info on that. If anyone knows anything about that or has general advice on how to raise my score as fast as possible I would definitely appreciate it. Right now I've got all three below 600. I have already disputed with the three agencies, and will be doing the certified mail to the companies who still show but are incorrect. Anything I can't get off that way I'll just pay. I've got a car that I bought outright with cash (so that's no help); I rent from an individual (also no help); but have opened a secured CC with my credit union with a limit of 500 and got a secured loan from them as well (250 over 6mo). I applied for a gas card and got turned down. I'd like to buy a house in about a year. I don't know anything about VA Home Loans, but will look into that before the end of the year. I've never bought a house before, so again, any advice would be welcome. I'm not sure what my score needs to be to get a loan, but that is what originally started me on this. I am separated, trying to push my divorce, but it looks like it'll be one of those things that I'll be trying to do for the rest of this year. That is another thing I don't know what the effects are on my credit. Thanks everybody. These forums are incredibly helpful, keep it up! James
|
|
|
|
03-14-2009 02:02 PM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
CreditCard101
Valued Contributor
Posts: 305
Registered: 02-23-2009
Message 79 of 128
Viewed 18,510 times
|
|
|
To smallfry: Its true but I really dont like Capital One, eventhough I had the account for two years. It really doesnt matter if my FICO drops, its ONLY temporary. The truth is you can always raise your score by not having too much high balance or carrying too much debt. I still have other accounts in good standing and low balance. That's my goal to keep all my account low or zero balanace as possible. I dont want too much credit card but I do want one or two good brand name credit card in my credit report and in my wallet. By the way, Anyone and Everyone can get a CAPITAL ONE card and they are too commons. Message Edited by CreditCard101 on 03-14-2009 08:27 PM
|
|
|
|
03-14-2009 08:23 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
smallfry
Super Contributor
Posts: 3994
Registered: 04-20-2007
Message 80 of 128
Viewed 18,488 times
|
|
CreditCard101 wrote:
To smallfry: Its true but I really dont like Capital One, eventhough I had the account for two years. It really doesnt matter if my FICO drops, its ONLY temporary. The truth is you can always raise your score by not having too much high balance or carrying too much debt. I still have other accounts in good standing and low balance. That's my goal to keep all my account low or zero balanace as possible. I dont want too much credit card but I do want one or two good brand name credit card in my credit report and in my wallet. By the way, Anyone and Everyone can get a CAPITAL ONE card and they are too commons. Message Edited by CreditCard101 on 03-14-2009 08:27 PM
CC101. Been there done that. Utilization and total amounts owed so long as the figure is not outrageous are quickly fixed by writing a check average age of accounts can kill you score for years. When I first started rebuilding nearly 2 years ago my scores were only marginally lower with 56% utilization. Today with 1% utilzation and a lower average age my scores are only fractionally higher. It's only a piece of plastic and the way credit card companies are acting today Cap One doesn't really look all that bad if you're not stuck in sub prime world.
|
|
|
|
03-14-2009 10:38 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
marty56
Super Contributor
Posts: 3681
Registered: 10-06-2007
Message 81 of 128
Viewed 18,752 times
|
|
CreditCard101 wrote:
By the way, Anyone and Everyone can get a CAPITAL ONE card and they are too commons.
LOL I cant, they blacklisted me since I closed my account with them 4 years ago. I didnt apply, 3 years ago I went to their site to see if I had any pre-approval offers from them. I also never got anything in the mail from them. I would say that 3 CC accounts (Visa, store card, gas card) would be minimum since that would allow you to have 1 card reporting a balance and showing the other 2 at 0% util. I have 3 CC cards and if I let 2 of them report a balance, I loose points. I have not seen anyone in the forum with 1 CC card and their results post as of yet.
10/11/2009: TU: 775 EQ: 746
0% CC util, 1 new CC account reporting
Just say no to credit card reform
|
|
|
|
03-15-2009 05:17 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
jreddick
Contributor
Posts: 12
Registered: 03-09-2009
Message 82 of 128
Viewed 18,718 times
|
|
|
Ok, reading through this I've seen a lot of comments about having 3+ cards, so I want to ask a question here. Right now, I have two credit cards and my EQ score is 745. Is it going to be difficult to get my score much higher without more credit cards? I'm only 20, so my total credit history is only two years and my average account age right now is only one year, so if I added another card I have a feeling my score would drop a lot. Other than the credit cards, I have a student loan of about 3500 and that's all of the credit I have right now. Any opinions? I'm not planning on buying a house any time soon, as I couldn't get a loan regardless of my score, since I don't have a full time job (just part time on campus) because of being in college. The main advantage I have about my credit score right now is really cheap car insurance (When I switched from my mom's plan I was paying $120/month, I got the same coverage on my own for $50/month.) I hear car insurance really drops when you hit 800. Thanks! Message Edited by jreddick on 03-15-2009 11:01 AM Message Edited by jreddick on 03-15-2009 11:02 AM
As of March, 2009
TU: 733
EQ: 745
|
|
|
|
03-15-2009 10:59 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
PayingTheBills
Valued Contributor
Posts: 343
Registered: 01-29-2009
Message 83 of 128
Viewed 18,714 times
|
|
marty56 wrote:
I have not seen anyone in the forum with 1 CC card and their results post as of yet.
I have one CC, a BoA Worldpoints. Once my CC balance and SL blances update and 2 very recent collections update (get deleted), I should be sitting around 620-640 depending on which CRA I'm looking at, lol. I got a pre-approved offer from Cap1 for one of their Credit Steps cards, so I'll be responding to that by the end of the month after my scores bump up. Then, in 6-9 months, I'll apply for a gas card, and that should be it for me for a while so my accounts can age.
My Credit Repair JournalTU 644 09/13/09 EQ 638 08/16/09 EQ 635 07/14/09 (FICO simulator says 665-695 3 months from now) TU 592 EQ 601 EX 563 01/29/09 FICO TU 517 EQ 540 EX 492 11/17/08 FICO
|
|
|
|
03-15-2009 11:20 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
smallfry
Super Contributor
Posts: 3994
Registered: 04-20-2007
Message 84 of 128
Viewed 18,704 times
|
|
jreddick wrote:
Ok, reading through this I've seen a lot of comments about having 3+ cards, so I want to ask a question here. Right now, I have two credit cards and my EQ score is 745. Is it going to be difficult to get my score much higher without more credit cards? I'm only 20, so my total credit history is only two years and my average account age right now is only one year, so if I added another card I have a feeling my score would drop a lot. Other than the credit cards, I have a student loan of about 3500 and that's all of the credit I have right now. Any opinions? I'm not planning on buying a house any time soon, as I couldn't get a loan regardless of my score, since I don't have a full time job (just part time on campus) because of being in college. The main advantage I have about my credit score right now is really cheap car insurance (When I switched from my mom's plan I was paying $120/month, I got the same coverage on my own for $50/month.) I hear car insurance really drops when you hit 800. Thanks! Message Edited by jreddick on 03-15-2009 11:01 AM Message Edited by jreddick on 03-15-2009 11:02 AM
Assuming your 2 credit cards were opened the same time your total months of average age is 48 divided by 2 or 24 months hence 2 years. If you add another card now your average total age in months would be 49 months. Divide by three and you can see what kind of hit you will take on your average age.Your score will most certainly go down. The problem is can you be assured you will see no AA from your current issuers? 2 cards is probably not enough. Don't go app crazy but adding a card now might not be a bad idea. 3 should be enough so long as the available credit along all the lines is sufficient for monthly reportable usage under 9%.. Message Edited by smallfry on 03-15-2009 04:11 PM
|
|
|
|
03-15-2009 01:10 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
CreditCard101
Valued Contributor
Posts: 305
Registered: 02-23-2009
Message 85 of 128
Viewed 18,696 times
|
|
|
Marty56: Really you can't get credit card with Capital One..That's strange, I should NOT be the one then. Let me tell you my story, kinda funny but its true. I open a Capital One Visa card in 2003 and two years later in 2005, I filed for bankruptcy (due to the new BK law takes effect in Oct 2005) and was discharged all of the debts, which include $3500 i owed to Capital One and many other Credit Card debts in the past.. Then two years later, i was approved for a $300 CL with Capital One Visa CC again, and then my CLI to $3500 18 months later. Back to ROUND TWO, but this time i voluntary close the account because I get better offer from AMEX and Bank of America. Its funny because i filed the bankruptcy on their ass and they still offer me credit card again..Well I guess anyone can get credit card with them or rebuild credit with them. ITS TRUE STORY FOR ME Message Edited by CreditCard101 on 03-15-2009 01:38 PM
|
|
|
|
03-15-2009 01:35 PM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
CreditCard101
Valued Contributor
Posts: 305
Registered: 02-23-2009
Message 87 of 128
Viewed 18,691 times
|
|
|
Marty56: Well you got a good point but for my case is a bit different I had capital one longest and overall age is 2 years perfect history. However, I dont use the card anymore and why should I keep the card when they still charge me $29 annual fees. I have other accounts with high Credit Limit and about the same age too. So I ask myself, is it worth it to keep the card longer and not using it to maintain my account average age by paying $29 annual fees. WELL I thought over and over again, its NOT really worth it. They charge me 12.89% APR and 29 Annual Fees..Oh HELL No, as a credit card customer, We're all helping banks generating revenue and they are not doing us any FAVOR at all. WHY BOTHER STAY WITH THEM and Get no BENEFITS..WHY PAY MORE AND GET LESS. Credit Score is just a credit score, if you really need to maintain your high credit score to purchase something big immediately then you need keep it otherwise, its not worth paying something for NOTHING.
|
|
|
|
03-15-2009 01:50 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
haulingthescoreup
Moderator
Posts: 22676
Registered: 04-01-2007
Message 88 of 128
Viewed 18,672 times
|
|
CreditCard101 wrote:
It does not matter how many credit card accounts you have. You have to maintain your debt/balance to a minimum, no late, no overdue, no defaults of any kind. That's a general RULE OF THUMB. However, with that being said having 3-4 accounts is ALL YOU NEED..
In fact, if you have any installment tradelines, you will be penalized if you have few CC's, because you're more apt to get hit with the "too many accounts with balances" ding. So there is sort of a minimum number of CC's to have, if you have an auto loan and mortgage, for instance. Those people with SL's which tend to report as a new TL every single semester are pretty well doomed in this particular area until they can consolidate their loans.
But that's just a scoring issue. Another issue, particularly relevant these days, is that having only one or two cards makes you much more vulnerable to eccentric behavior from your CCC's. I freely acknowledge that right now, I have more CC's than I'd like (10 plus an AU card, three of which are store cards.) I am gently pruning them. But the fact is, I have a lot of redundancy in terms of lenders, and if one or two (or three) go nuts on me, they won't hurt my overall credit picture.
I would really hate to have been riding out the recent credit crunch while holding only an AmEx card and an HSBC card.
---------------------------
Please be friendly, supportive and respectful --and leave your high horse at the door!
Neither a borrower nor a lender be. --Wm. Shakespeare
Credit is a wonderful servant, but a terrible master. Who's the boss --you or your credit?
9/9/2009: EQ 769 - TU 765 - EX ???
Done credit hunting; having fun with credit gardening.
FICO High Achievers - Credit Scoring 101 - myFICO PDF Booklet - Closing Credit Cards - Frequently Requested Threads - Helpful Threads
FTC website: Knee Deep in Debt - FICO Score Estimator
|
|
|
|
03-15-2009 03:14 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
smallfry
Super Contributor
Posts: 3994
Registered: 04-20-2007
Message 89 of 128
Viewed 18,668 times
|
|
haulingthescoreup wrote:
CreditCard101 wrote:
It does not matter how many credit card accounts you have. You have to maintain your debt/balance to a minimum, no late, no overdue, no defaults of any kind. That's a general RULE OF THUMB. However, with that being said having 3-4 accounts is ALL YOU NEED..
In fact, if you have any installment tradelines, you will be penalized if you have few CC's, because you're more apt to get hit with the "too many accounts with balances" ding. So there is sort of a minimum number of CC's to have, if you have an auto loan and mortgage, for instance. Those people with SL's which tend to report as a new TL every single semester are pretty well doomed in this particular area until they can consolidate their loans.
But that's just a scoring issue. Another issue, particularly relevant these days, is that having only one or two cards makes you much more vulnerable to eccentric behavior from your CCC's. I freely acknowledge that right now, I have more CC's than I'd like (10 plus an AU card, three of which are store cards.) I am gently pruning them. But the fact is, I have a lot of redundancy in terms of lenders, and if one or two (or three) go nuts on me, they won't hurt my overall credit picture.
I would really hate to have been riding out the recent credit crunch while holding only an AmEx card and an HSBC card.
Comparative safety in the CU's. Glad I picked up Penfed and NFCU.
|
|
|
|
03-15-2009 03:18 PM
|
|
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
marty56
Super Contributor
Posts: 3681
Registered: 10-06-2007
Message 92 of 128
Viewed 17,588 times
|
|
haulingthescoreup wrote:
Having credit does not equal having debt. Two different things.
LOL not so long ago they where one in the same for me. These days it is hard to manage the use of multiple credit cards since some CCCs dont generate a statement every month if there isnt a balance and they seem to change the statement date as well. I wonder if CCCs are getting wise to PIF'ers that are trying to raise their FICO score.
10/11/2009: TU: 775 EQ: 746
0% CC util, 1 new CC account reporting
Just say no to credit card reform
|
|
|
|
03-16-2009 02:20 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
[ Edited ]
|
|
CreditCard101
Valued Contributor
Posts: 305
Registered: 02-23-2009
Message 93 of 128
Viewed 17,283 times
|
|
|
Yeah that's right having credit DOES NOT equal having debt. Having credit means you are into a credit market to meet your financial needs~~basically another word, you need loan to buy stuff you want. On the other hand, if you are a millionaire/billionaire or hollywood moviestars, YOU DONT NEED CREDIT. I am sure you pay everything with CASH in FULL.Credit doesn't mean SH1T if you are RICH. To obtain credit all you need is 2-3 credit card (no more than 3), a mortgage or auto loan...Credit Card =use them and pay if off, auto loan takes you 3-5 years then say GOODBYE to Carpayment and mortgage 15-30 years of payment ( Mortgage sounds so painful) Good LUCK, live life within your means. DON'T TAKE ON TOO MUCH DEBT.. ITS SCARY.. I really hate to see Credit Card Balance.. Message Edited by CreditCard101 on 03-18-2009 02:21 PM
|
|
|
|
03-18-2009 02:19 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
smallfry
Super Contributor
Posts: 3994
Registered: 04-20-2007
Message 94 of 128
Viewed 17,241 times
|
|
CreditCard101 wrote:
Yeah that's right having credit DOES NOT equal having debt. Having credit means you are into a credit market to meet your financial needs~~basically another word, you need loan to buy stuff you want. On the other hand, if you are a millionaire/billionaire or hollywood moviestars, YOU DONT NEED CREDIT. I am sure you pay everything with CASH in FULL.Credit doesn't mean SH1T if you are RICH. To obtain credit all you need is 2-3 credit card (no more than 3), a mortgage or auto loan...Credit Card =use them and pay if off, auto loan takes you 3-5 years then say GOODBYE to Carpayment and mortgage 15-30 years of payment ( Mortgage sounds so painful) Good LUCK, live life within your means. DON'T TAKE ON TOO MUCH DEBT.. ITS SCARY.. I really hate to see Credit Card Balance.. Message Edited by CreditCard101 on 03-18-2009 02:21 PM
In the new world of credit having too much available credit will be looked upon as too risky to some lenders. The game is over.
|
|
|
|
03-18-2009 07:50 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
SteveM
Visitor
Posts: 3
Registered: 09-27-2008
Message 95 of 128
Viewed 11,748 times
|
|
|
You are correct. My observation is that if a credit card is used each month AND is paid off each month will be a negative factor for a score. For example, a Visa of $1000 and a Discover of $500 will appear as if the two cards are carrying a balance IF the FICO is run while the amounts are on the credit report. I assume that a Debit card does not track that way with a FICO score. Thus, multiple small charges to credit cards in a month looks like usage is up across credit cards. From that point, you do have to look at the % usage of a card. So, a card with a $2000 credit limit and charges $1000 is 50% usage and is not positive. Every month, I also had a $30 charge go to a Sears CC for simplicity of billingg but that was showing that a credit card was being used that really was not a negative thing but the FICO calc'ed while that charge was on there caused a negative score. A credit card from a major Visa, Mastercard, Discover, and a store card show credit diversification and management responsibility. Combine that with a car loan, mortgage and a bank/credit union installment loan and you have a good 750+ credit score potential. Also, note that a FICO score is recomputed everytime you request a new FICO OR a business requests a FICO OR new informaton hits the credit report that changes the score based upon the model. The above are what I was able to determine based upon using Scorewatch and noticing when my score changed based upon events. I'm currently at 740 and will now focus on making sure that multiple cards don't get used and trying to make a better usage of a debit card and direct charges to a checking account.
|
|
|
|
05-16-2009 10:43 AM
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
jaramill
Contributor
Posts: 12
Registered: 04-17-2007
Message 97 of 128
Viewed 11,690 times
|
|
haulingthescoreup wrote:
Just pay off your balances before the statement drops on all but one card, and your util will be under 1%. No reason not to use the cards.
You are ABSOLUTELY right. I have 3 cc. One I used to pay all my monthly bills (small CL of $1,200). At the end of each month right before the statement date hits (this is the date after the due date which is $0) I pay it ALMOST IN FULL. This means I pay MINUS my credit rebates. So if balance is $100 and I have a $10 rebate, I pay $90 to the card. Statement date comes, cc applies rebate to my balance ($10 - $10 credit) = $0 balance and I'm ahead of the game. Not only did I get a $100 interest free loan, they even paid me $10 to boot. That's how YOU become the master of the cc, not the slave.
|
|
|
|
05-16-2009 10:28 PM
|
|
|
|
|
|
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
OptimalFICO
Visitor
Posts: 4
Registered: 07-05-2009
Message 101 of 128
Viewed 7,628 times
|
|
|
In a past post, you wrote: Once you have good cards with decent CL's, I'd say that you should have three bank cards anyway (CU's are great, if you also have one or two from a "national bank" like Citi, BofA, etc), plus one retail or gas card that does not have Visa, MC, etc on it. The majors should be from different lenders, in case one loses their mind, or goes bankrupt, or is invaded by Martians or something. MY QUESTION: Do you have to have one or two cards from a "national bank?" I don't care for Nat'l Banks. I have AmEx Blue Cash Card CL $20K, Simmons First Visa Fixed Rte CL $7,500, First National Bank of Omaha Bucks Back Visa CL $15K, Pentagon Fed CU Cash Rewards Visa CL $15,700. I was planning on opening a MasterCard -- should I go with a Nat'l Bank? Do you have a preference? I heard Capital One doesn't report to all credit bureaus. I also heard Nat'l Banks would likely soon begin charging annual fees. (note, I pay my balances in full every month and have FICO over 800). I want a card that I can keep forever and never close due to unfavorable change in terms such as implementing annual fee for the card. Any suggestions? Thanks!
|
|
|
|
07-05-2009 12:20 PM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
haulingthescoreup
Moderator
Posts: 22676
Registered: 04-01-2007
Message 102 of 128
Viewed 7,587 times
|
|
OptimalFICO wrote:
MY QUESTION:Do you have to have one or two cards from a "national bank?" I don't care for Nat'l Banks. I have AmEx Blue Cash Card CL $20K, Simmons First Visa Fixed Rte CL $7,500, First National Bank of Omaha Bucks Back Visa CL $15K, Pentagon Fed CU Cash Rewards Visa CL $15,700. I was planning on opening a MasterCard -- should I go with a Nat'l Bank? Do you have a preference? I heard Capital One doesn't report to all credit bureaus. I also heard Nat'l Banks would likely soon begin charging annual fees. (note, I pay my balances in full every month and have FICO over 800). I want a card that I can keep forever and never close due to unfavorable change in terms such as implementing annual fee for the card. Any suggestions? Thanks!
AmEx is considered a national bank. Don't know about Simmons.
"National" bank just means a bank with nationwide or near-nationwide market penetration. So Cap One vs. First Hometown Bank, Chase vs. Friendly Corner Bank, and so forth. This is strictly for scoring considerations! Do you get any negative comments on your FICO EQ or FICO TU reports regarding no active credit with major banks or some such? (Please, FICO comments only; not comments from TrueCredit, CreditSecure, and other FAKO score reports.) If not, I wouldn't worry about it.
Don't open an account simply in hopes of pleasing the FICO gods. They are mysterious and fickle.
As for Cap One, they have been reporting to all three for almost 2 years now. Every now and again we get a post about them not doing so, but it usually turns out to be because some of the demographic info was incorrect, so the bureaus couldn't/ wouldn't post the updates from Cap One.
Before applying for any card, research here on the forums using the search function above on the left. Many things have changed in credit land over the last 6 - 12 months.
btw, there is no magic in having a MasterCard over a Visa. Unless you're heading to the Olympics or something, I've never seen a creditor that takes one and not the other. You have a nice collection of cards and limits now, and since you already have four open revolving accounts, your scores will most likely take a hit initially for adding another. At this point, the only reason you should be thinking about adding a card is if you find one that specifically fits a purpose in your credit and financial goals: excellent rewards program, etc. Getting a card for the sake of getting a card can set you back, unless you have specific issues like lots of bad credit history that needs to be diluted with "good" (clean) new credit.
---------------------------
Please be friendly, supportive and respectful --and leave your high horse at the door!
Neither a borrower nor a lender be. --Wm. Shakespeare
Credit is a wonderful servant, but a terrible master. Who's the boss --you or your credit?
9/9/2009: EQ 769 - TU 765 - EX ???
Done credit hunting; having fun with credit gardening.
FICO High Achievers - Credit Scoring 101 - myFICO PDF Booklet - Closing Credit Cards - Frequently Requested Threads - Helpful Threads
FTC website: Knee Deep in Debt - FICO Score Estimator
|
|
|
|
07-06-2009 03:47 AM
|
|
|
|
|
Re: How many CCs is considered Optimal for FICO Scoring?
|
|
writemikep
Regular Contributor
Posts: 216
Registered: 10-21-2008
Message 103 of 128
Viewed 7,565 times
|
|
haulingthescoreup wrote:
As for Cap One, they have been reporting to all three for almost 2 years now. Every now and again we get a post about them not doing so, but it usually turns out to be because some of the demographic info was incorrect, so the bureaus couldn't/ wouldn't post the updates from Cap One.
CapOne isn't reporting to EX for me.... guess I should call them and see what's up (and why they aren't).
|
|
|
|
07-06-2009 11:12 AM
|
|
