Need some advice here...

[Anonymous]

I'm pretty new to the whole understanding how credit scores work. I guess recently what I've been doing is keeping my score from going up or down. I don't know if I like that. I like to see changes; good or bad. So anyway, here's my thing...

I just got approved for the Amex blue three weeks ago. I've wanted this card for the longest time and I finally got it. Then a week later, I applied for a US bank visa card because I wanted a new Visa card (since I made a mistake by canceling my cap one card lol). And now a few days ago, I applied for a Discover card and got approved for that. I know this is bad... me applying for a million cards within a month's period. The other part of my plan is to cancel all those stupid cards with high APRs. I recently cancelled Value City, CareCredit, Cap One, and HSBC. Just a few hours ago, I decided to give it a shot and call Cap One to reopen my account, along with HSBC Mastercard. So as of now, I have the following cards open:

AmEx Blue (opened 7/2007) - $2k
Discover Card (opened 7/2007) - $1k
Citi mastercard (opened 4/2006) - $5k
HSBC mastercard (opened 12/2006) - $1k
US Visa (opened 7/2007) - $2k
Cap One Visa (opened 5/2003) - $500
GE Line of Credt (opened 3/2007) - $15k

My question is, do I really need this many credit cards opened??? Did I made a huge mistake by applying for all these extra cards in the past few weeks? Should I close some of the accounts? The only cards with any kind of balance right now are Citi mastercard ($3000 balance) and GE Line of Credit ($14k balance). Should I cancel some cards, if so which one's?

For those of you who are wondering, I was trying to be all cool by having an Amex card, a Discover card, a mastercard, and a visa. I don't know why, but I just thought it would be cool to have all four types of cards... But did I make the right decision? And will this affect my credit scores next month?

Thanks for your help!

Message Edited by jizoe182 on 07-19-2007 07:44 AM

[VLGaffEsq]

Based on your information, you don't need ANY MORE credit cards in your stable; having 6 credit cards is enough!  However, I would not cancel any of them right now since that would adversely affect your overall ratio of available credit.  Just sit tight for about 6 months to a year, and use each one for small purchases to build up your trade lines, but above all, do not apply for any more credit cards, as I'm sure the multiple inquiries you have recently acquired are hurting your overall FICO score.  In a year or 2, I would go about cancelling your HSBC card, after some of your other credit limits have been raised, but above all, always keep open your CapitalOne card since you have had it the longest.

[Anonymous]

I am sure you will take a hit for the new accounts and reduction of age.

This is not a big deal unless you were going to be buying a house or re-fi of a auto loan.

I feel 6 crads is not too many. Let them age and ask the sub-prime ones to waive the fees.

Nice little app spree you had there.  

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jizoe182 wrote:
I'm pretty new to the whole understanding how credit scores work. I guess recently what I've been doing is keeping my score from going up or down. I don't know if I like that. I like to see changes; good or bad. So anyway, here's my thing...

I just got approved for the Amex blue three weeks ago. I've wanted this card for the longest time and I finally got it. Then a week later, I applied for a US bank visa card because I wanted a new Visa card (since I made a mistake by canceling my cap one card lol). And now a few days ago, I applied for a Discover card and got approved for that. I know this is bad... me applying for a million cards within a month's period. The other part of my plan is to cancel all those stupid cards with high APRs. I recently cancelled Value City, CareCredit, Cap One, and HSBC. Just a few hours ago, I decided to give it a shot and call Cap One to reopen my account, along with HSBC Mastercard. So as of now, I have the following cards open:

AmEx Blue (opened 7/2007) - $2k
Discover Card (opened 7/2007) - $1k
Citi mastercard (opened 4/2006) - $5k
HSBC mastercard (opened 12/2006) - $1k
US Visa (opened 7/2007) - $2k
Cap One Visa (opened 5/2003) - $500
GE Line of Credt (opened 3/2007) - $15k

My question is, do I really need this many credit cards opened??? Did I made a huge mistake by applying for all these extra cards in the past few weeks? Should I close some of the accounts? The only cards with any kind of balance right now are Citi mastercard ($3000 balance) and GE Line of Credit ($14k balance). Should I cancel some cards, if so which one's?

For those of you who are wondering, I was trying to be all cool by having an Amex card, a Discover card, a mastercard, and a visa. I don't know why, but I just thought it would be cool to have all four types of cards... But did I make the right decision? And will this affect my credit scores next month?

Thanks for your help!

Message Edited by jizoe182 on 07-19-2007 07:44 AM

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[Anonymous]

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@VLGaffEsq wrote:

Based on your information, you don't need ANY MORE credit cards in your stable; having 6 credit cards is enough! However, I would not cancel any of them right now since that would adversely affect your overall ratio of available credit. Just sit tight for about 6 months to a year, and use each one for small purchases to build up your trade lines, but above all, do not apply for any more credit cards, as I'm sure the multiple inquiries you have recently acquired are hurting your overall FICO score. In a year or 2, I would go about cancelling your HSBC card, after some of your other credit limits have been raised, but above all, always keep open your CapitalOne card since you have had it the longest.

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Cool! Thanks for the advice! Now I have another question, Should I just have one of each type of card? Say for example, a year from now, I've established better credit than today and I feel like I no longer need to handle 6 credit cards... Should I also cancel US Bank Visa along with HSBC? I don't think I need two Visa's or two Mastercards. One of each is fine for me. I'm not even sure if I still want Discover. And since I shouldn't cancel Cap One, I would have to give up my US Bank. Agree or disagree???

[Pants]

No need to apply for any more cards.. I believe any more than a few applications or hard hits is a red flag for a lot of lenders. Credit score is affected and I think after a few loan applications per year (3 to 5) creditors will see that as a risk.

I am not sure what to say about closing accounts on cards you no longer use.

Years ago the rule of thumb was if you are no longer using the cards to close the accounts. If applying for a loan the lender will see the "potential credit". The lender can determine that if you maxed out your cards will you not be able to afford the new loan payment. Thus you can be rejected.

However today... they tell you to not cancel the unused card unless it is costing you money. I guess the longer the credit history, the better the score.

It seems most lenders these days no longer look at the long credit report.. All that matters is the score. It leaves me a little bit confused.

Message Edited by Pants on 07-19-2007 03:07 PM

[Anonymous]

Ive gotten the idea it not the number of accounts you have, it's the one's with balances

I think you can have up to 4 credit accounts with balances and it not affect your score badly, (this innferring from fico estimater, when it asks how many accounts have a balance and not just Ccs, the first choice is 0-4)

so it seems if the report isn't reporting more than 4 accounts with balances then your ok. , so when you plan to use credit  pay off the extra accounts give them time to be updaed that CRAs

[Pants]

Thanks... I suppose balance doesn't matter as long as you are down to the 0 to 4 category..

But what about closing unused cards?  I have a few I wouldn't mind closing.. But I had the accounts for over 5 years.

Even though I never used lets say my Firestone card to buy tires.. Closing that account can decrease score?

I look at it as an ID theft precaution. I think the less companies who have my personal info on file the better.. But I suppose every bank these days can get anyone's personal information as they please. LOL

[Anonymous]

if the account is reporting and is not costing you any money...leave it open. longer the history, the better.

[Anonymous]

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@Anonymous wrote:

if the account is reporting and is not costing you any money...leave it open. longer the history, the better.

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Good deal. Thanks!

I can't imagine using all six at a time, so is it wise to rotate these cards I have once in a while so none of them go inactive?

[Anonymous]

yes def. don't let any of them get inactive.