No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
You're assuming that they're mutually exclusive and they're not. Good credit typically entails a thicker file. If one has a thin file then one will need to build it to get better credit. A thicker file will generally have a larger number accounts, a greater diversity of types of credit and longer AAoA. All those impact credit scoring (along with the other factors mentioned in the link I posted earlier in this thread).
That said, one doesn't need a large number of cards for scoring purposes. IIRC at least 2-3 revolving lines are the general recommendation for FICO scoring purposes.
Well, i have a 748 transunion, but it just dropped 2 points because of the Chase Marriott i just signed up for. I just got my First CC's 9 months ago, but i had high CS then as well.
@biggestmexi wrote:
Why? I am trying to understand but what is the reasoning of having so many cards 5+? I do not want to sound rude, but i just do not understand. Is it a secret to have a bunch or is it really just to maximize the return?
I have nine after closing half a dozen cards.
Why?
1. The more you have the more overall credit you have and the more you can charge without having it shred your score for carrying a high balance. Total utilization of all your CL's combined seems to have more impact on your score than whats on a single card. I have more cards and have over $40,000 total credit available...so when I borrowed over what ended up being nearly $6500 to buy a new vehicle it barely scratched my FICO at the time. It never dropped more than a total of 5 points or so...and of course has only gone up as Ive been paying the balance down (pretty much paid off at this point).
2. The more cards you have the more offers you have on the table at any given time. Guaranteed out of my 9 cards at least one of them is offering me 0apr...or a very low APR for at least 6 months.
I have had thousands of dollars of debt on my cards over the last few years, nearly paid off now, and I'd bet that over all that Ive paid less than 3% total interest overall over the years.
Ive found that having a number of cards doesnt really seem to have any negative effect on my FICO so why not have as much credit available as I want?
:-)
Some people like to have each card to maximize the best of each reward category. Some folks like to pad their available credit, so if they have a month that they have to float a purchase, their scores don't take a nose-dive. Some have so many so that their file is considered "thicker". Some people like the vanity of it. Some folks have it for necessity. Some folks have an addiction to seeing congratulations! lol
All of the above
Rewards maximization and sign-up bonuses. The thicker file and utilization benefits are a nice side benefit.
@biggestmexi wrote:Well, i have a 748 transunion, but it just dropped 2 points because of the Chase Marriott i just signed up for. I just got my First CC's 9 months ago, but i had high CS then as well.
@Anonymous't be fooled by a Fico score on a young credit file, 748 is a great score but it's only one piece of the puzzle. Imagine your credit profile (748 with oldest account @ 9 months) vs someone with the exact same 748 but has had 30 different cards/accounts over the past 10 years. Totally different story, not to say you aren't doing great because you are, just dont be fooled early in the game with a high score. Persoally I have a ton of cards because of sign up bonuses, in the last 8 months of really getting serious on my credit DW and I have accumilated enough points for 3 r/t business class flights to 4 different destinations in asia. IMO i worked so hard to clean up/maintain my credit I might as well use it to my advantage
@biggestmexi wrote:Well, i have a 748 transunion, but it just dropped 2 points because of the Chase Marriott i just signed up for. I just got my First CC's 9 months ago, but i had high CS then as well.
Right, it is perfectly possible to have a good score with a thin file (and two points is just noise). Thicker files come in when you want to do stuff, such as apply for new cards, either "normally' or aggressively churning cards to get sign up bonuses. As said earlier, with a thick file, adding new accounts has much less impact. If you have just one card, adding another approx halves the average age of accounts with a big score impact. With 30 open and closed accounts, another one has almost no impact.
@bribro wrote:Rewards maximization and sign-up bonuses. The thicker file and utilization benefits are a nice side benefit.
You have 9 cards from chase? Don't they supposed to have 6 card limit?
@newUser0 wrote:
@bribro wrote:Rewards maximization and sign-up bonuses. The thicker file and utilization benefits are a nice side benefit.
You have 9 cards from chase? Don't they supposed to have 6 card limit?
Yes. No; there's no hard limit AFAIK.