What is the right amount of accounts I need open when rebuilding

[Unique620]

Hi all,

I keep hearing that you need two credit cards and one installment account. But I have also seen people say three credit card accounts and one installment account. Which one is accurate? 

Thanks!

[Anonymous]

3 cards. You get dinged for having half ( or more ) of your cards reporting a balance. You also get dinged if no cards report a balance. If you have 2 cards the options for reporting balances is no car, half of the cards or all cards. If you have 3 cards then 1 can report a balance and still be under the half way mark

[Unique620]

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@Anonymous wrote:
3 cards. You get dinged for having half ( or more ) of your cards reporting a balance. You also get dinged if no cards report a balance. If you have 2 cards the options for reporting balances is no car, half of the cards or all cards. If you have 3 cards then 1 can report a balance and still be under the half way mark

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Thanks!

[RonM21]

3 is a good number of cards. 2 works also, but 3 helps move things long a little better.

[Unique620]

Ok. Thanks

[Anonymous]

So you get dinged for having a zero balance? I thought that's what lenders were looking for or is it that zero balance that contributes to lower UTI?

Learning something new everyday 

[Anonymous]

You get dinged if no cards report a balance. As long as 1 card reports $1 that ding disappears. But if you only have 1 card then you still get dinged if it reports a balance because every card is reporting a balance.