General question

[bobkmn]

I have a question for the group. I keep noticing from the posts that folks here seem to have TONS of credit cards. If this place is to help

people manage and improve their credit/FICO score, then why so many cards? If there is something that I could be educated on, please

do. And, how do you add your CC info at the bottom of your messages?

Thanks.

Bob

[Burned2manybridgesB4]

Rotation of category rewards.. one card may have 5% back, when others don't. Myself, I love the signup bonuses: cash back, spend kickback, miles...

[Burned2manybridgesB4]

http://ficoforums.myfico.com/t5/SmorgasBoard/THIS-IS-HOW-YOU-ADD-CREDIT-CARD-PICS-TO-YOUR-PROFILE/td...

[user5387]

You need around three cards to optimize FICO scoring and to qualify for some mortgages.

[bobkmn]

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@user5387 wrote:

You need around three cards to optimize FICO scoring and to qualify for some mortgages.

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Understand 3 cards, that is what I have now. Many people here have tons more than 3. I have 2 cards with 500 CL and a new one with 6500. 

Thoughts on what I could do to improve my position? my FICO varies between the 3 agencies from 698-738.

Thank you.

[Burned2manybridgesB4]

I know I"m going to get whipped by the fico lords here shortly....but.....

IMO....stressing IMO...

Key to fico high: time, payment, type...

More cards, more payment history posting over more time...higher score in the long run?!?!?!

[09Lexie]

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@bobkmn wrote:

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@user5387 wrote:

You need around three cards to optimize FICO scoring and to qualify for some mortgages.

---

Understand 3 cards, that is what I have now. Many people here have tons more than 3. I have 2 cards with 500 CL and a new one with 6500. 

Thoughts on what I could do to improve my position? my FICO varies between the 3 agencies from 698-738.

Thank you.

---

There is no one size fits all answer.  To improve your scores, without knowing your credit profile, I would suggest being patient, maintaining an excellent payment history and overall low utilization.

Adding cards unnecessarily will help with util but you need to show a good pyt history with those new cards.   Without any derogs, your CS will increase -slowly but surely. 

I guess I'm one that could be characterized as having a ton of cards but my credit history goes back to 1985 and adding a few cc's here and there won't hurt my AAOA. 

[Burned2manybridgesB4]

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@09Lexie wrote:

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@bobkmn wrote:

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@user5387 wrote:

You need around three cards to optimize FICO scoring and to qualify for some mortgages.

---

Understand 3 cards, that is what I have now. Many people here have tons more than 3. I have 2 cards with 500 CL and a new one with 6500. 

Thoughts on what I could do to improve my position? my FICO varies between the 3 agencies from 698-738.

Thank you.

---

There is no one size fits all answer.  To improve your scores, without knowing your credit profile, I would suggest being patient, maintaining an excellent payment history and overall low utilization.

Adding cards unnecessarily will help with util but you need to show a good pyt history with those new cards.   Without any derogs, your CS will increase -slowly but surely. 

I guess I'm one that could be characterized as having a ton of cards but my credit history goes back to 1985 and adding a few cc's here and there won't hurt my AAOA. 

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We can never do a "sterile" environment test with fico scores here...we're all very dirty people...

[p-]

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bobkmn wrote: I have a question for the group. I keep noticing from the posts that folks here seem to have TONS of credit cards. If this place is to help

people manage and improve their credit/FICO score, then why so many cards? If there is something that I could be educated on, please

do. And, how do you add your CC info at the bottom of your messages?

---

Bob,

There's a guide for the card images here: http://ficoforums.myfico.com/t5/SmorgasBoard/Profile-tweaks/m-p/1864003

Often when rebuilding, people apply for any card they have a chance at getting.  At the beginning, the cards available are not that good, but better than nothing.  Some are retail only, and not that useful but get your foot in the door for better stuff later.  As your profile improves, you become eligible for higher tier cards.  Depending on how many  you started with, it can be really easy to end up with three high tier cards, and a wallet full of little retail or sub prime cards from when you were rebuilding.

An important part of rebuilding is having a plan for what cards you ultimately want to end up with.  Without that, it's easy to apply like crazy and end up with way too many cards.  Some people make it a project to optimize every possible reward dollar, and have a huge variety of complex tactics to get the best reward out of each purchase.  For them, a pile of cards is a must in order to get the best payback.

For me all of that is just too much hassle.  Out of 8 cards, three are Authorized User cards, and 5 are my own.  I have one "useless" card that is my absolute oldest, the 1700 Cap1 card.  It used to be a sub prime Orchard card, but has been Upgraded to a QS card and gets modest limit increases every six months.  As it is my oldest, and has no annual fee, I plan to garden that until it becomes a five figure World Mastercard.  I get sort of a kick out of my old 300 dollar OB card ending up like that.  I have one Amex, which I plan to keep as it is my only NPSL Charge Card.  I see value in having that in my mix, as it's balances are not figured into Utilization.

My Chase Freedom is one of my two high limit cards, and gives me 5% in various categories.  I use it for Gas when it is in bonus, and vacations when that is a bonus category.  The other Cap1 card is my second oldest and a high limit, which has grown from a Platinum Rebuilder into a 10k WMC.  I use it for international travel with no Forex fee, and also when I have a high dollar purchase that doesn't fit the Chase 5% categories.  Once my old Orchard card catches up with it, I'll likely close it.  I use the USAA Amex when I have something that I want to pay over time, as it has the lowest rate of all of the cards.  Most of the time I use another card with higher rewards, and PIF each month.

It's my opinion that every card should have a purpose.  Filling your wallet with credit from anyone who will grant it is risky, and makes you look bad on your report.  It is much better to grow and PC your cards to fit your needs when possible.

My advice is that rebuilders start with a single unsecured card from Capital One if they can, even though it might have a fee, and a low limit.  It will grow over time, and can be changed to a higher tier product retaining the old history.  If necessary, this can be a second step to a single secured card.  If you do need a secured card, get one that will graduate to a prime card later.  I advise against opening retail cards, unless there is one specific retailer that you shop frequently enough that you would keep it.

After a year of history, and some work on the report, most rebuilders are ready to app for prime cards.