On my way to a GREAT credit card line up!!

[Anonymous]

First off this is my first post ever on here!! I have been reading for a while and got some great advie and I am very thankful for that! I'm 23 and have been working for a while to get a great credit variety, Ive been an idenity theft victim since I was 18 and just recenly was able to get my credit back on track! My current score is a 734 and I have the following cards:

Discover More: 5000 CL

Chase Freedom: 1800 CL

Chase Sapphire P: 5000 CL

Amex Zync: NPSL

I just recenly got approved for the Amex and my goal is to wait about 6 more months and try for the card I really want which is the Blue Cash P. and just cancel the zync. Around October will be my one year with Freedom and I'm going to try and covert from a visa to a world master card with a bump up to 5000 for the credit line, just so that I can have one card of every type(Visa sig, World Master, Discover and Amex). But yeah that is my journy and plan thanks with help from this fourm

[LS2982]

Good luck! You have a nice set of lines there, especially the CSP!

[HenryJumbo]

The Discover makes sense, so does the Freedom and Amex, what sticks out to me in the Sapphire which is similar to the Freedom, with a little better perks on the points, but an annual fee. 

And if you wanted the blue card why not just apply for it? My first ever Amex card is the blue card.

Also why just convert the Freedom to Visa sig?

And welcome I'm new too.

[Anonymous]

I want to have a little bit of history with Amex before I apply for a revolver ( Just to be safe) and I already have a Visa sig with my CSP and would like to have a world mastercard just for the sake of having one of each. 

[OptimalFICO]

Welcome Schmooey!

I have a few comments and suggestions for you to consider:

Your FICO scores are made up of different types of credit -- mortgage, installment (auto, personal loans) and revolving debt (credit cards, store cards) -- and different types of lenders -- banks, credit card lenders (AmEx), credit unions, finance companies. (I would never borrow from a finance company as FICO considers them substandard lenders and such an account may hurt your scores).

Carefully manage all those revolving accounts. Maybe alternate usage every other month (paying them off when the bill comes) since FICO needs to see regular usage, but penalizes you for too many balances on too many cards. I would only use the Macy's and Best Buy cards frequently enough that they won't be closed. Regardless, you probably know to keep your balances below 30% of your CLs? Absolutely below 50% of your CLs.

A mortgage might be out of your reach as your next move, but I would suggest, before changing anything else, you consider adding an installment account (car loan, personal loan). This will likely increase your scores now much more than increasing your credit limits.

If you must convert your AmEx to the Blue card, I would wait for a full 12 months.

Just my little 2 cents :-) Best wishes!

[Uborrow-Upay]

A big Welcome to shmooey and to HenryJumbo!

Glad you're here.

[BrokaToe]

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@OptimalFICO wrote:

Welcome Schmooey!

I have a few comments and suggestions for you to consider:

Your FICO scores are made up of different types of credit -- mortgage, installment (auto, personal loans) and revolving debt (credit cards, store cards) -- and different types of lenders -- banks, credit card lenders (AmEx), credit unions, finance companies. (I would never borrow from a finance company as FICO considers them substandard lenders and such an account may hurt your scores).

Carefully manage all those revolving accounts. Maybe alternate usage every other month (paying them off when the bill comes) since FICO needs to see regular usage, but penalizes you for too many balances on too many cards. I would only use the Macy's and Best Buy cards frequently enough that they won't be closed. Regardless, you probably know to keep your balances below 30% of your CLs? Absolutely below 50% of your CLs.

A mortgage might be out of your reach as your next move, but I would suggest, before changing anything else, you consider adding an installment account (car loan, personal loan). This will likely increase your scores now much more than increasing your credit limits.

If you must convert your AmEx to the Blue card, I would wait for a full 12 months.

Just my little 2 cents :-) Best wishes!

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Am I going crazy? LOL, I'm searching and searching for something about Macy's and Best Buy, sorry not trying to be smart, just wondering if I missed something.

BTW, Awesome line up OP, wish you the best, and welcome to the forum

[HenryJumbo]

Thx Uborrow I feel welcomed!

[OptimalFICO]

HenryJumbo - Re: my suggestion to get an installment loan, note that it is not necessary to have an installment loan, it is possible to develop outstanding FICO scores wiih revolving accounts. I wouldn't open any more revolving accounts in addition to the ones you already have unless you are doing something like you plan with AmEx where you are just upgrading your card from one brand to another with the same lender). I have read that having 2-3 such cards is the "magic" number.

Brokatoe - Re: Macy's and Best Buy, nothing wrong with them per se, it's just that the FICO algorithm gives greater weight to credit cards issued by banks and national credit card companies, even over credit unions, so they built more depth. But I've read you only need one to fulfill this FICO CC/bank/national credit card requirement.  In the past I have also read that it is best not to have any merchant accounts, one or two at most, such as Macy's and Best Buy (better to have none and to only get one if you shop the retailer frequently and receive benefits from having it that you couldn't get otherwise). I guess these are better than not having any credit though since they are easier to get, if one can't obtain an AmEx, Visa or MC to help establish credit. I always felt like I was missing out on those "open an account today and save an extra 10%" purchase discount, but more recently, I read that to take advantage of such discounts, one could open the account, get the discount, pay it off immediately and close the account after the purchase. It said you could then open another new merchant account to qualify for another discount within days after clsoing the previous account. You would supposedly not be penalized from opening multiple loans since the FICO scoring system only looks at the number of new accounts OPEN in the last 12 months, not the ones you have opened and closed. Though there would be the multiple hard inquiries and their potential impact...

[iMacDrew]

Welcome!

  You got some prime cards with good limits. Im just curious though, why do you want the Amex Blue Cash preferred and the Chase Sapphire Preferred those two AF's comined are pretty high. If its for the metal I understand lol. But if you plan on cancelling the Zync when you app for the Blue Cash preferred just do a product change around the end of the year.