Too Many Accounts?

[Anonymous]

Is there a problem with having too many credit cards (not too many cards with balances).

Over at fatwallet, there are people with 40, 50, or even more credit cards.

From reading this thread, having 2 or 3 credit lines might be too little, because then you have to juggle the balances on them very carefully.  Maybe get 7-10 credit cards to be safe, and have a little more freedom in using a small number of them / rotating them.

[Anonymous]

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haulingthescoreup wrote: FICO shouldn't ding you for plain old "too many accounts" (unless you have over 30 accounts.) FICO will ding you for "too many accounts with balances" (emphasis mine.)

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I beg to differ.

Number 4 under "What's hurting your FICO score" for TU is "You have too many credit accounts", with the further description:

"Your FICO score takes into account the number of accounts (such as credit cards or installment loans) on your credit report. You have a large number of accounts. In general, people who have a large number of accounts pose more of a risk to lenders than people with a moderate number of accounts"

and:

"FICO High Achievers have an average of 6 accounts currently paid as agreed."

I have 21 accounts, 9 of which are closed, and one of which is an account that I was an AU on that should be dropping off any day now.

Message Edited by BobSki778 on 04-08-2008 01:10 PM

[haulingthescoreup]

That's interesting! Thanks for posting this--I will add it to the list:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=12673&page=1

No one has posted this exact comment before. I'm pretty sure that FICO 08 is still not yet upon us, but I wonder if the most recent TU version is now being used here. Suddenly a lot of people are reporting odd comments and changes on their TU reports.

[Anonymous]

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haulingthescoreup wrote:

No one has posted this exact comment before.

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*ahem*.

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=17911

[haulingthescoreup]

OK, oops, I do have the faintest memory of that. But did you get the full quote that JimSki did? Because I have never come across that one (just added it to my list.)


edit to add (hit submit too quickly): I'm wondering if the most current non-FICO 08 version of the TU formula has finally arrived here at myFICO. I'm seeing a lot of posts about weird stuff on people's FICO TU reports (always TU.)

Message Edited by haulingthescoreup on 04-08-2008 03:42 PM

[Anonymous]

Yep, I have the same explanation for the remark.  Word for word.

Interesting that everyone reporting this apparently new snide little comment is only seeing it on TU.

[Anonymous]

Actually, I think this is the same as the existing "number of accounts currently being paid as agreed" on your Expanded FICO High Acheivers list. The text on that item is also included in the "FICO High Acheivers" sidebar on my report (sorry for not including it previously). The full text on my report is this:

[4] You have too many credit accounts.

Your FICO score takes into account the number of accounts (such as credit cards or installment loans) on your credit report. You have a large number of accounts. In general, people who have a large number of accounts pose more of a risk to lenders than people with a moderate number of accounts.

What to do about this: Avoid opening more credit accounts at this time and as a general rule, if you don't need or plan to use credit, don't apply for it.

[BOX]

Number of your credit accounts currently paid as agreed

21 accounts

[STAR] FICO High Achievers have an average of 6 accounts currently paid as agreed.

[/BOX]


So, it can be a positive or a negative, depending on how many you have.

[EDIT]I'm not 100% sure, but I think I saw this same comment a year or so ago, but I don't have that CR handy. I'll have to try to find the hard copy when I get home.[/EDIT]

BTW: anyone have any thoughts on my situation here:
http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=95858#M95858

Thanks,
Bob

03/03/2007 FICO: TU 661 / EQ 671 / EX 691
03/10/2007 FAKO: TU 715 / EQ 733 / EX 738 (privacyguard.com)
04/06/2007 FAKO: TU 719 / EQ 737 / EX 740 (privacyguard.com)
04/07/2007 FAKO: TU 676 (truecredit.com)
04/07/2007 FICO: TU 676

Message Edited by BobSki778 on 04-08-2008 04:39 PM

[Anonymous]

Fico numbers.

EQ/ EX say "Too many accts with bal"

Tu says both:
"Too many accts with bal"
"Too many accounts"

Of course, they also got me on high credit usage.

Pretty much decided to just let it run for a while - take a new look when my util is back down to a reasonable level.


*This was supposed to be a quote on an earlier reply to me.

Message Edited by meauho on 04-16-2008 11:55 AM

[Anonymous]

"Too many accounts with a balance" is 20+ points for me.

No hit for "Too many Accounts"

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meauho wrote:
Fico numbers.

EQ/ EX say "Too many accts with bal"

Tu says both:
"Too many accts with bal"
"Too many accounts"

Of course, they also got me on high credit usage.

Pretty much decided to just let it run for a while - take a new look when my util is back down to a reasonable level.


*This was supposed to be a quote on an earlier reply to me.

Message Edited by meauho on 04-16-2008 11:55 AM

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[Anonymous]

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@Anonymous wrote:

"Too many accounts with a balance" is 20+ points for me.

No hit for "Too many Accounts"

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How do you know? Did you pull 2 reports and FICO scores where the only difference was paying off some cards? Did you do this by transferring balances (no effect on overall UTI) or paying down (also reduces overall UTI)? How did you compare for "too many accounts". I'm having a hard time thinking of a way to change the number of accounts without some other effect (changing overall UTI by changing total CL, eliminating good/bad account history, ding for any "new account" added, etc., etc.).

Thanks

Message Edited by BobSki778 on 04-16-2008 01:28 PM