@Anonymous wrote:K: I meant spread thin haha so I guess thick but relatively low lines each. That sounds like a good plan for BoA. I don't typically carry a balance on my cards, but since my home buying brought me here to myFico I've been introduced to the crazy world of credit cards.
Is it unwise to keep opening up 0% BT cards every year to pay off my purchases? It would be nice to payoff my $5k home expenses over 3 or 4 years without interest. But I don't know if I would take too much of a hit constantly having a balance on my cards. Although now that I have a mortgage I guess it's not too bad if I take a hit for a little bit.
Also, does the fact that I am an AU on a $20,000 Amex BCE card change anything? Or is it like the mortgage where not really any consideration is given to it.
Thanks again for all your advice, you have been super helpful!
Opening up a new balance transfer card every year would ding the "average age of accounts" and "time since most recent account opening" parts of your scores, but should not cause any major issues. I would caution that you would likely be paying balance transfer fees (usually 3-5%) on most credit cards when you transfer them and if a $5k purchase is wearing you thin on the ability to pay back (that's only about $100 a month at 0% if you spread it out over 48 months), you may be hitting a slippery slope with home ownership where big expenses can and do happen.
Having a constant balance on a card doesn't hurt, and you'll take a hit if none of your cards are reporting a statement balance since it then looks like you aren't using any of your credit. The key is to have the right amount of balance(s) showing - generally less than 29% of your total credit and ideally 1-9%, more than half of your credit cards reporting $0, and ideally no more than 29% reporting on any one card. There are a lot of other factors in there, but those are the basics. Also once you close on home, there's no real need to micromanage your reporting balances unless you plan to apply for a new loan or credit card, just don't let your creditors think you're maxed out.
As for the AU status, it is going to depend on how a lender's internal scoring works and/or the relationship you have with the primary user. Generally, that should be quite helpful if the card's utilization is under control, it isn't a brand new card, and the payment history is flawless.
