Anyone reach the point where their CC portfolio is complete?

[OptimalFICO]

It's my understanding that three CCs is the "magic" number that the FICO scoring algorithm likes to see (though my credit scores don't seem to have been hurt by my four cards). To maximize points, you must have and show periodic usage for at least one card from a bank (WF, BofA, etc.) or national credit card company (AmEx, Capital One, Discover, etc.). Having too many open revolving lines of credit can end up costing you points and I think it becomes difficult to manage periodic usage on lots of accounts when I have also heard that the FICO scoring model doesn't like to see more than one revolving account balance reporting each month. Also, I am totally opposed to cards with AFs.

(Post revised to change two revolving account balances reporting to one.)

[CS800]

I wanted:

1. Nordstrom - Got the store card

2. A BOA card - Got the Cash Privileges

3. Old Navy - Got the Store Card

4. Target - Recently approved for the store card

5. To PC my Discover More to the IT -- Done

What i would like to do without any HP:

1. Get a CLI on my BCE to 25K -- two more weeks to wait until the 6 months mark

2. Get a CLI on my BBRZMC above $1000 or close it (it has a $59 AF) -- Pending

3. Get a CLI on my Cap One or close it (It has a $39 AF) -- Pending

What I thought about but will not go forward with:

1. PenFed credit card

2. PSECU 20/20 Combo

3. USAA World MC

4. Citi Diamond Preferred/Thank You Preferred

For now I am fully satisfy with my portfolio. I think any more addtion would kill my AAoA even more and wouldnt be worth the hassle of possible AA by my existing creditors.

[MarineVietVet]

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@OptimalFICO wrote:

It's my understanding that three CCs is the "magic" number that the FICO scoring algorithm likes to see (though my credit scores don't seem to have been hurt by my four cards). To maximize points, you must have and show periodic usage for at least one card from a bank (WF, BofA, etc.) or national credit card company (AmEx, Capital One, Discover, etc.). Having too many open revolving lines of credit can end up costing you points and I think it becomes difficult to manage periodic usage on lots of accounts when I have also heard that the FICO scoring model doesn't like to see more than two revolving account balances reporting each month. Also, I am totally opposed to cards with AFs.

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May I ask the source for this? I don't find anywhere in the FICO Risk Score Reason Codes that specifically says that having more than 2 revolving accounts report a balance at the same time has any impact on scoring.

There is a code for "Too many accounts with balances" but it's not broken down to particular types of accounts.

[OnTheRebound]

My wife and I are absolutely, positively DONE apping.

(Unless, of course, someone offers a card with much better rewards than we already have, in which case, I won't be able to resist!)

Penfed Plat. Cash Rewards

Amex BCP

Chase Freedom

Citi Plat. Select

Lowes

Home Depot

Care Credit

I'm happy with what we have. I see no reason to apply for more cards, except for the reason stated above, which I don't see happening.

[trumpet-205]

Let's see,

On my to get list

* AMEX BCE or BCP

* US Bank Cash+ (unsure)

* Barnes and Noble MC (unsure)

* Capital One PSN (unsure)

* Target Redcard

* A business CC like Chase Ink Classic

On my future axe list

* Capital One Student Visa

* BofA Cash Rewards (unsure, only axe if I get BCE)

Already axed

* JCPenney

* AMEX Zync

Still a long way to go.

[Roarmeister]

I've got 3.  Why would I need more?  What is the advantage of more if one of the charcteristics of a high FICO scorer is to have only a few cards.

OK OK, I might get one more sometime in the future, maybe a VISA to with the 2 MC and 1 AM.  My total CCL on 3 cards than most people have with 20 ($41k)

[android01]

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@MarineVietVet wrote:

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@OptimalFICO wrote:

It's my understanding that three CCs is the "magic" number that the FICO scoring algorithm likes to see (though my credit scores don't seem to have been hurt by my four cards). To maximize points, you must have and show periodic usage for at least one card from a bank (WF, BofA, etc.) or national credit card company (AmEx, Capital One, Discover, etc.). Having too many open revolving lines of credit can end up costing you points and I think it becomes difficult to manage periodic usage on lots of accounts when I have also heard that the FICO scoring model doesn't like to see more than two revolving account balances reporting each month. Also, I am totally opposed to cards with AFs.

---

May I ask the source for this? I don't find anywhere in the FICO Risk Score Reason Codes that specifically says that having more than 2 revolving accounts report a balance at the same time has any impact on scoring.

There is a code for "Too many accounts with balances" but it's not broken down to particular types of accounts.

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No, there is nothing that says that having two revolving accounts reporting has any impact on scoring, but after monitoring my reports for several years, I have found that MY optimal FICO score is achieved with one balance reporting at 1%.  I've done several tests over the years to test what works best, and this works best for ME (maybe not others in different buckets).  For example:  I let two balances report in June - $70 on an AMEX revolver with a $12,800 CL and a $20 balance on a CiTI card with a $15,000 credit line.  My score on EQ was 807.  I let one balance report on the same AMEX card for $70 and $0 on the CITI card in July and my EQ score went to 817.  My other FICO scores reflected roughly the same point increase/decrease.   I've tested this theory many times in different permutations and have always had the same result.  I have 12 open revolving CL's and 1 mortgage CL.  My experience has told me that having two revolving balances report lowers my FICO score.  

[MarineVietVet]

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@android01 wrote:

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No, there is nothing that says that having two revolving accounts reporting has any impact on scoring, but after monitoring my reports for several years, I have found that MY optimal FICO score is achieved with one balance reporting at 1%.  I've done several tests over the years to test what works best, and this works best for ME (maybe not others in different buckets).  For example:  I let two balances report in June - $70 on an AMEX revolver with a $12,800 CL and a $20 balance on a CiTI card with a $15,000 credit line.  My score on EQ was 807.  I let one balance report on the same AMEX card for $70 and $0 on the CITI card in July and my EQ score went to 817.  My other FICO scores reflected roughly the same point increase/decrease.   I've tested this theory many times in different permutations and have always had the same result.  I have 12 open revolving CL's and 1 mortgage CL.  My experience has told me that having two revolving balances report lowers my FICO score.  

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And it might work that way for many others also but my only point was that there is nothing in the scoring formula that dictates that everyone will be dinged for having more than 2 revolving accounts reporting balances at the same time.

As always YMMV.

[ztnjpv]

I am kind of at that point. I just went on a 2 card app "spree" (if you want to call it that) on the PenFed Platinum Rewards and US Bank Cash +. I got both and am now at a point where I struggle to see much benefit in any other cards out there. I feel like I have the maximum percentage of rewards in most categories that I could need. 

-5% on gas(at the pump) with PenFed all year with no caps 

-5% on all cable and telecom and office supplies with Chase Ink (sort of redundant with Cash+ but now I can divide biz and personal)

-5% on bill pay (including electric, gas and insurance which is over and above Chase Ink) with Cash+

-5% on non-fast food Restaurants with Cash+

-3% on groceries at Walmart Supercenters with PenFed

-2% on all restaurants (including fast food and cafes) on Chase Ink or Spark

-2% on non-pump gas station purchases with Chase Ink or Spark Cash.

-2% catch-all baseline on all non-bonus category expenses with Spark Cash.

1.5% discount with Plum Card or 60 days interest free to pay in full...all with no pre-set limit and the ability to make very large purchases. 

Anything else at this point is either redundant or of questionable value in light of annual fees. The BCP would fetch 6% on groceries for when I am not in Walmart. But that's not very often. The gift card angle is tempting though. The 3% on gas would get an extra 1% on non-pump purchases and the 3% at department stores is nice. But is that all worth the annual fee? Might be a wash for my trouble. BCE is useless. PRG is useless and there's a hefty annual fee. CSP is also useless and there's a fee as well. 

The only thing that's of some value and somewhat tempting is a hotel rewards card like SPG or Hilton Amex to get a potentially better baseline value from enough non bonus purchases to accrue points for vacations and hotel stays at better than 2%...or even better than 5% with Hilton with gas and utlities provided the points or redeemed at the right places. But again, this is all on margins looking for a little extra here and there. 

I am waiting for new card to launch that can do more.