Credit Score-How many can I Open??

[Anonymous]

I went on an new credit spree this year, because I had absolutely no credit at all for the past 5 years.

So I thought I would post my results

Juanuary

Walmart Store Card $400 CL

Gap Store Card $400 CL

Victoria Secret Store Card $250 - I did not use the SCT

Febuary 

Credit One Visa $300

Overstock CL $250 raised 2x for a current CL of $650

March

Bealls Store Card $350 with email pre approval

J Crew $250 - with SCT

Kohl's $300 

Ann Taylor $250 - with SCTC

Grand Total of new credit $3150 & 9 new accounts.

So the question is how many cards can you get away with opening, before your score drops????

My score was on a steady rise for a bit until the 5th new account was reported - Then it dropped 115 points. I have some accounts that have not hit my report yet.

Before I started I had NO OPEN CREDIT ACCOUNTS. My only credit account was reported as paid & closed 4 years ago.

THE PLAN

My plan now is to keep my UT less than 10% and not apply for any new accounts until my score is over 650 then I only entend to except pre aprovals from major cards. No more store cards for a while. I just needed them to establish a credit history.

My starting scores were about 550 on all 3 reports - This year it raised about 650 & dropped back to 550. It will raise over time. Im in the Garden until I get some pre approvals for major cards.

It comes at a good time, because I opened some disputes for 3 collections & it will give me time to have the removed.

I JUST WANT TO ADD THAT I HAD 2 COLLECTIONS APPEAR ON MY REPORT AFTER I STARTED OPENING NEW ACCOUNTS. ITS LIKE THOSE COLLECTIONS NEW I WAS WORKING ON MY CREDIT SCORE. 

[MrsCHX]

But I wanted to say, people you owe money to will occassionally soft pull your reports. So now they see you as 'collectible' again and will try to collect on old debts. 

[gdale6]

Hi there OP,

I have created your own thread on this in our UFS forum. I changed the title and left everything else intact.

[Azza]

First, congrats on your approvals.

But, serious question now, why did you apply for all these store cards?

You also mention you're waiting to hear back from "major cards" for pre-approvals? Most pre-approvals I've seen are junk cards with no benefits.

I guess I'm more curious as to why you haven't been in the garden for longer... establishing credit on all of those cards sounds like a real chore... one that could have been much easier to achieve if you had just gotten say, the Credit One Visa and maybe one store card?

Is anybody else bewildered?

[Anonymous]

OP, I think you need to reevaluate what you are doing right now with respect to your credit profile.  You've opened 9 cards and honestly none of them are particularaly "good" ones.  There's nothing wrong with having a couple of store cards in your portfolio so long as they are cards that you're actually using, but having 8 of them especially starting out is not a good look at all.  The only card I think that isn't a store card is your Credit One and they from what I understand are one of the worst creditors out there and do all kinds of shady stuff.  I think they charge an AF too, right?

What I would do if I were you is stop applying for cards and not apply for ANYTHING for the next year.  During the next 3-6 months figure out which of those store cards you actually think you'll use regularly.  I would try to drop down from 8 to 3 if I were you, but only you can make that decision.  1 year from now assuming you can get your scores to about 700 you should apply for a major credit card from a reputable creditor.  Something like Discover.  Even a Capital One card.  The day you get approved for it, close that Credit One account and never look back.  Once all your scores are above 700 and nearing 720 (say 16-18 months from now) I'd apply for 1-2 more major cards that you feel would suit you well, perhaps a rewards card, a travel card, etc.  Then again reevaluate your store card situation and act accordingly. 

If you follow this plan you'll have 3 major credit cards in your wallet within a year and a half, 710-720 scores to go along with them and a lot less crappy store cards that dilute your otherwise solid credit profile.

[MrsCHX]

I completely missed the 100 point drop. OUCH. That's the average age of account drop that really hurt you in addition to the inquiries. 

It's too bad you didn't post before all of the apps. I think the Amazon and Kohl's, if you shop there all the time anyway, are definitely worth keeping. Overtime you'll want to cull some of those cards. But you've dinged yourself enough that you may not be able to get an unsecured card for awhile. 

Beware that you're looking at a rebuild time of 1-2 years. So be patient!