cancel
Showing results for 
Search instead for 
Did you mean: 

Beating a dead horse (figuratively speaking, of course).

tag
MarineVietVet
Moderator Emeritus

Re: Beating a dead horse (figuratively speaking, of course).


@Gunnar419 wrote:

I agree that after you've got the 2-3 cards needed to make FICO happy, there is no optimal number. It's more a matter of how old they are, how you manage your util and payments, etc.

 

FWIW, I'm at 805 EQ with six cards and no installment loans or mortgage. But my payment record is perfect, my AAoA is 20+ years, and my util is under 6%.


More proof that high scores can be obtained without installment loans.

Message 11 of 15
Drew
Frequent Contributor

Re: Beating a dead horse (figuratively speaking, of course).

Does the quantity of credit cards (e.g. 9+) lengthen the amount of time it takes to hit 800?

Message 12 of 15
Anonymous
Not applicable

Re: Beating a dead horse (figuratively speaking, of course).

Depends on when you're getting said cards. If you add one every year to 9 AAoA will drop every year as well as new accounts. If you got 9 cards the first year you had credit.... Yes... It will get you there faster because of all the payment history and age will be significantly more.

Final answer.... It can.... And at the same time it won't. Its how you structure the cards.
Message 13 of 15
core
Valued Contributor

Re: Beating a dead horse (figuratively speaking, of course).


@Dw4250 wrote:
2-3 bank cards and at least one installment loan. I don't think the number of cards/loans after that matters...

Is there not a penalty for >= 50% of revolving lines reporting a balance?

Is there not a penalty for zero revolving lines reporting a balance?

 

How does one avoid both of these penalties at the same time with only 2 cards?  I thought we were talking about "optimal".

Message 14 of 15
MarineVietVet
Moderator Emeritus

Re: Beating a dead horse (figuratively speaking, of course).


@core wrote:

@Dw4250 wrote:
2-3 bank cards and at least one installment loan. I don't think the number of cards/loans after that matters...

Is there not a penalty for >= 50% of revolving lines reporting a balance?

Is there not a penalty for zero revolving lines reporting a balance?

 

How does one avoid both of these penalties at the same time with only 2 cards?  I thought we were talking about "optimal".


You make it as optimal as you can to fit your own situation.

 

The approach is basically the same with just two cards. Let one report a small balance and the other report a zero balance each month. You might get dinged a few points for "more than half of revolving accounts reporting balances" but IMO it's not enough to worry about.

 

You can add another card but that is up to you.

Message 15 of 15
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.