12-29-2009 01:40 AM
I've looked somewhat, but I can't find the answer to my question. Maybe I am not wording it right. What is the best amount of credit cards/charge cards to have? Is it like 3-4? I know the average person has more, I think so anyways. In that mixture, how many of each (credit, charge). I was trying to tell my fiance, but I can't remember or seem to find the information. I have 12 at the moment, 9 with balances. I am paying my cards down, and then I wanted to cancel them. But I am not sure which ones to cancel and which to keep. The * are the ones with zero balances.
Best Buy $1500
GHCU Visa $950
Sam's Club $900
GHCU Visa $300
*Helzberg $302 (was $3250 but didn't use it and HSBC lowered it)
*Mattress Place $2550 (was bought out, but they said they would close it after year of inactivity, no longer able to charge)
Hmm.. I feel that I should keep the higher Visa, and then I am not sure which others. I was reading the postings and it looks like people have a hard time getting one or two of those cards? Within a couple days the Best Buy, Macys, and Visa $950 will be at zero balance. I am 22 years old so all of these cards have about the same age, Best Buy being the last card I got. Also, if anyone can answer this, I will be done with school in 2 1/2 years, and will be getting married in 3 years. What should I do to prepare myself for this? I am not worried about the wedding costs, but about buying a house a little bit after marriage. How can I raise my credit score within this time frame? It's around 600. No lates ever, 2 collections from 5 years ago. Just have a problem with keeping the balance down, I have a little bit of a spender inside. Wow, I am not sure if this should be all in one post, but if you can answer anything at all that would be great.
12-29-2009 01:46 AM
12-29-2009 09:49 AM
Eliminate the balances - leave the cards alone unless they have an AF.
I agree with this. I have 7 cards and it's quite manageable for me. What I do is have each of my cards set up to pay a recurring monthly bill with autopay so I don't have to remember which card to use this month to keep it active. You might try that.
If you get your utilization (total balances divided by total credit limits) on your revolving credit in order you will likely see an increase in your score.
Optimal credit utilization for FICO scoring purposes seems to be:
Total revolving utilization > 0 and < 9%, the lower the better, and
Reporting a balance on less than half of your revolving TL's, and
Reporting a balance on half or less of all TL's.
And remember to NEVER be late on any payment for any reason. Late payments are the kiss of death for high scoring.
From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
You can do the same thing with hard work.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.