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+1 to nuts!
I also like establishing lines now, it will give them time to age and build my AAoA. Later on if I have an actual need for a high FICO, my AAoA will be good and stable even if I need a few new accounts.
youuu the mann! you spoke for many of us includeing me lol
I have 10 cards, 5 Bankcards and 5 store cards.
The bankcards I have have CL's under $1K. The store cards I have can easily grow to over $1K in time. The goal is to get 2 or 3 major bankcards with CL's over $1K, and when that happens I'll close the lower limit cards (mainly Capital One and CreditOne...lol)
I started rebuilding around this time last year...I had no recent revolving history whatsoever and had just gotten a $300 CL Household card, and I've gained $3,500+ in credit over a year, which is more than I had when my credit was good back when I was 18-19.
@bluedog1 wrote:I've read that 3-5 is optimal for FICO scoring...more than 6 may actually hurt your score. There are a couple benefits I see from having a lot of cards. If you are just starting out and getting low limits then having a lot of cards can help with utilization. Adding new cards in the future won't hurt your AAoA as much since you have a lot of older accounts to buffer the age.
I know about the 3-4 rule, but how does more than 6 hurt you? Is it because of the default risk associated with so many? It doesn't seem to matter so much with those that have them for getting new ones. I admit I have too many and just enough for what I am doing. My two sisters have filed bankruptcy so I have some of them loaned out to them. One sister just has a balance on the account and not the card or number and she simply pays it to me every month. I get to keep my cash free and she pays interest. The other simply was overburdened by debt and makes good money, so she actually has the cards. She uses them and pays on them every month. I apply the rewards she gets on them to lower her debt on the cards. (I am training her very well on this benefit.) Even if she can't pay in full each month I pay it in full for her and I get the money shortly anyway. (I know she is good for it.) I reserve the best rewards cards for myself though!
So yeah I also wonder in some way and know that I have more than I need. I just have a plan which so far has not hurt my score, only improved it. It keeps the util low, it shows multiple accounts managed well, it signals to others higher limits as I get new cards, and it gets my foot in the door with the best lenders. If there is a negative aspect it is being offset by the positives. However, I do plan on closing one account in the near future! I am about 4 months from doing so if all goes well! Once I get to about $30K or an Amex card, then Merrick is history. This will be a sad day in my life as I actually absolutely love them as a company, but the annual fee and security are a bother to me. I simply wish they would offer upper tier cards and PC me to one of them after all it has been over 5 years I have had that card. I think I have proven to them my intent.
Mainly for sign up bonuses.
During a period of a couple of years, the best way to maximize rewards was use one's spend for sign up bonuses, if one's credit report could withstand it. Now, that the sign ups are drying up, I'll settle down with around 4 cards.
Don't really see any compelling reason to have more.
@bernhardtra wrote:
@bluedog1 wrote:I've read that 3-5 is optimal for FICO scoring...more than 6 may actually hurt your score. There are a couple benefits I see from having a lot of cards. If you are just starting out and getting low limits then having a lot of cards can help with utilization. Adding new cards in the future won't hurt your AAoA as much since you have a lot of older accounts to buffer the age.
I know about the 3-4 rule, but how does more than 6 hurt you? Is it because of the default risk associated with so many?
I should have worded it better: having a lot of open tradelines doesn't hurt your score per se but it can come off as having a higher default risk especially if there is a lot of available credit. This is probably irrelevant when applying for credit cards but comes into play when you're trying to get a mortgage.
@bluedog1 wrote:
@bernhardtra wrote:
@bluedog1 wrote:I've read that 3-5 is optimal for FICO scoring...more than 6 may actually hurt your score. There are a couple benefits I see from having a lot of cards. If you are just starting out and getting low limits then having a lot of cards can help with utilization. Adding new cards in the future won't hurt your AAoA as much since you have a lot of older accounts to buffer the age.
I know about the 3-4 rule, but how does more than 6 hurt you? Is it because of the default risk associated with so many?
I should have worded it better: having a lot of open tradelines doesn't hurt your score per se but it can come off as having a higher default risk especially if there is a lot of available credit. This is probably irrelevant when applying for credit cards but comes into play when you're trying to get a mortgage.
I will keep that in mind! I plan on starting the closing process on the worst cards that I have after I get the Amex! For the time being though I will simply garden what I have! I have no need for any more cards, I only want the Amex as the reward for getting to top of the mountain! The trophy of cards so so to speak. At some point then there must be a new trophy! (I think I just summed up in some ways the rationale some of us have, a little twist here and there and it makes sense. Some people see the trophy as just having many. Others see the trophy in the types of cards. Some see the trophy as in the affect it has on their score.)
i think the more credit account you have mean the more bank is willing to grant you credit.. it is good for ur credit history. i read that story somewhere online..
@waihao0405 wrote:i think the more credit account you have mean the more bank is willing to grant you credit.. it is good for ur credit history. i read that story somewhere online..
Only up to a certain point. If you have too many cards with too much available credit that will raise a red flag.