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Valued Member
Posts: 203
Registered: ‎07-05-2009
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Re: Anyone reach the point where their CC portfolio is complete?

[ Edited ]

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.)

Super Contributor
Posts: 6,677
Registered: ‎04-07-2008
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Re: Anyone reach the point where their CC portfolio is complete?

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.




Moderator
Posts: 17,409
Registered: ‎07-14-2009
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Re: Anyone reach the point where their CC portfolio is complete?


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.

 


 

Established Contributor
Posts: 537
Registered: ‎08-05-2009
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Re: Anyone reach the point where their CC portfolio is complete?

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.

 

Amex BCE $11.1 / Citi Diamond Preferred WMC $12K / Citi Double Cash WMC $3.8K / Comenity Total Rewards Visa $2.5K / Citi Home Depot $5K / AU- Amex BCP $12K / Chase Freedom Visa $11014.00 / PenFed Platinum Rewards Visa Signature $6K / GE Lowes $10K
myFico Scores on 10/03/2014
Eq 798 / Exp 811 / Trans 814
CCT Fico 08 on 1/3/16 - Trans 786 / Exp 793 / Eq 797
Valued Contributor
Posts: 2,528
Registered: ‎11-11-2010
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Re: Anyone reach the point where their CC portfolio is complete?

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. Smiley Happy

In My Wallet:
Citi Forward (12/2010) | Citi Dividend (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)
Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
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Re: Anyone reach the point where their CC portfolio is complete?

 

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



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Frequent Contributor
Posts: 342
Registered: ‎04-21-2012
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Re: Anyone reach the point where their CC portfolio is complete?

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)

 

Established Member
Posts: 1,306
Registered: ‎09-22-2009
0

Re: Anyone reach the point where their CC portfolio is complete?

[ Edited ]

MarineVietVet wrote:

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.

 


 


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.  

EQ Fico 8 - 850
TU Fico 8 - 850
EX Fico 8 - 850
Moderator
Posts: 17,409
Registered: ‎07-14-2009
0

Re: Anyone reach the point where their CC portfolio is complete?


android01 wrote:

 


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.  


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.

Established Contributor
Posts: 734
Registered: ‎02-01-2012
0

Re: Anyone reach the point where their CC portfolio is complete?

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. 

 

 

Start (Sept 2011): low-mid 600s. NOW: TU FICO: 801, EQ FICO 808, EX FICO 798 (PSECU). Goal: Achieved! Now Maintain!

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