How many is too many

[Anonymous]

Hi, this is my first post.

I came to US of A a year ago.

had no credit history.

Over the last year i have managed to get Amex blue cash, Discover more, Chase freedom and Boa signature card. And obviously i have a lot of credit inquiries and lots of rejection at the time.

I am NOT planning any more applications for the next couple of years

I presume with time my scores will improve as i have revolving credit.

Now with that backgound, When can we expect my scores to improve as i will be looking for a mortgage in couple of years.

Any other advice from the wise about wht else should i do apart from paying the bills on time.

[Wolf3]

I don't think you need any more credit cards, you have 4 good ones.   Keep using all of them and pay your bills on time.   

An installment loan would be a good addition, if are buying anything that could be purchased that way.  

[danisgods]

Agreed, finance a cheap car, under 10k  pay it on time in like a year with some money down so its not too much monthly... that'd help 

[Anonymous]

thanks you two

[Wolf3]

---

@danisgods wrote:

Agreed, finance a cheap car, under 10k  pay it on time in like a year with some money down so its not too much monthly... that'd help 

---

Buying an appliance or some furniture on credit will do just as well.

[haulingthescoreup]

---

@Wolf3 wrote:

---

@danisgods wrote:

Agreed, finance a cheap car, under 10k  pay it on time in like a year with some money down so its not too much monthly... that'd help 

---

Buying an appliance or some furniture on credit will do just as well.

---

I'd be careful on this one. I assume you're saying that these would add an installment TL to OP's reports. But some of these accounts now report as revolving, and others report as consumer finance loans (CFL's.)

A CFL isn't the end of the world, but it is a slight negative.

I'd say at this point, don't take a loan for anything, or get any other kind of credit, unless you actually need to. IMO, good FICO scores should serve personal finances, not the other way around.

[jforsyth]

@ the OP, you're all set.

You have 4 rewards cards and they're all from major banks. That's a perfect number of cards: very manageable yet enough to show that you're reliable paying multiple bills every month.

What I would do if I were you: 

1. Use each card every month. Amex Blue, Discover More, and Chase Freedom all have bonus categories. Use those cards for their bonus categories, and then use the BofA card for every day expenses that don't fall into any of the bonus categories. At the very least, just make sure you buy a stick of gum or something on each card, every month,

2. Pay down the balances on 3 of your cards to $0 BEFORE their respective closing dates each month. That way, no balance will post on 3 of your cards, but you will still show positive card and payment activity. On your 4th card, pay down the entire balance except for $1 (again, before the closing date) and allow that to post. Then pay off the $1 the day the grace period begins so you never pay interest. Be sure to rotate which card posts the $1 balance (i.e. this month Discover, next month BofA, the month after that Amex, the month after that Chase, and repeat).

3. Wait 2 years until all of your inquiries fall off. Don't apply for anything that you don't absolutely need.

I can promise you that after 2+ years of perfect payment history on 4 cards, 0 inquiries on your reports, and a 1% utilization (FICO rounds up to whole percentage points) with 1 out of 4 cards reporting a tiny balance, you will have excellent credit. You don't have to really do anything aside from paying your bills on time and being disciplined..

[Anonymous]

Thanks jforsyth 

i will follow your advice

i totally forgot to add tht i do have a 60 month car loan.

I hope i can remain discipline with card use and payments.

thanks again

[mrldp40]

12