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Moderator Emerita
Posts: 28,095
Registered: ‎04-01-2007
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Re: How many CCs is considered Optimal for FICO Scoring?


CreditCard101 wrote:
LOL, if you can handle more debts and have money to spend and charge onto your credit cards. You can have as many accounts as you want. No one is stopping you from having more credit card or more accounts. Everyone financial is different, however, for me I do want DEBT of any kinds.. ITS SCARY

I agree. That's why I don't have debt, except for mortgage and an auto loan.

Having credit does not equal having debt. Smiley Happy Two different things.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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Registered: ‎10-06-2007
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Re: How many CCs is considered Optimal for FICO Scoring?


haulingthescoreup wrote:
Having credit does not equal having debt. Smiley Happy Two different things.

LOL not so long ago they where one in the same for me.

 

These days it is hard to manage the use of multiple credit cards since some CCCs dont generate a statement every month if there isnt a balance and they seem to change the statement date as well.

 

I wonder if CCCs are getting wise to PIF'ers that are trying to raise their FICO score.

01/28/2017 FICO: EQ: 798 EX:802 TU:798
Frequent Contributor
Posts: 401
Registered: ‎02-23-2009
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Re: How many CCs is considered Optimal for FICO Scoring?

[ Edited ]

Yeah that's right having credit DOES NOT equal having debt. Having credit means you are into a credit market to meet your financial needs~~basically another word, you need loan to buy stuff you want. On the other hand, if you are a millionaire/billionaire or hollywood moviestars, YOU DONT NEED CREDIT. I am sure you pay everything with CASH in FULL.Credit doesn't mean SH1T if you are RICH.

 

To obtain credit all you need is 2-3 credit card (no more than 3), a mortgage or auto loan...Credit Card =use them and pay if off, auto loan takes you 3-5 years then say GOODBYE to Carpayment and mortgage 15-30 years of payment ( Mortgage sounds so painful)

 

Good LUCK, live life within your means. DON'T TAKE ON TOO MUCH DEBT.. ITS SCARY..

I really hate to see Credit Card Balance..

 

Message Edited by CreditCard101 on 03-18-2009 02:21 PM
Senior Contributor
Posts: 4,834
Registered: ‎04-20-2007
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Re: How many CCs is considered Optimal for FICO Scoring?


CreditCard101 wrote:

Yeah that's right having credit DOES NOT equal having debt. Having credit means you are into a credit market to meet your financial needs~~basically another word, you need loan to buy stuff you want. On the other hand, if you are a millionaire/billionaire or hollywood moviestars, YOU DONT NEED CREDIT. I am sure you pay everything with CASH in FULL.Credit doesn't mean SH1T if you are RICH.

 

To obtain credit all you need is 2-3 credit card (no more than 3), a mortgage or auto loan...Credit Card =use them and pay if off, auto loan takes you 3-5 years then say GOODBYE to Carpayment and mortgage 15-30 years of payment ( Mortgage sounds so painful)

 

Good LUCK, live life within your means. DON'T TAKE ON TOO MUCH DEBT.. ITS SCARY..

I really hate to see Credit Card Balance..

 

Message Edited by CreditCard101 on 03-18-2009 02:21 PM

In the new world of credit having too much available credit will be looked upon as too risky to some lenders. The game is over.

Visitor
Posts: 3
Registered: ‎09-27-2008
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Re: How many CCs is considered Optimal for FICO Scoring?

You are correct.

 

My observation is that if a credit card is used each month AND is paid off each month will be a negative factor for a score.  For example, a Visa of $1000 and a Discover of $500 will appear as if the two cards are carrying a balance IF the FICO is run while the amounts are on the credit report.  I assume that a Debit card does not track that way with a FICO score.  Thus, multiple small charges to credit cards in a month looks like usage is up across credit cards.  From that point, you do have to look at the % usage of a card.  So, a card with a $2000 credit limit and charges $1000 is 50% usage and is not positive.   Every month, I also had a $30 charge go to a Sears CC for simplicity of billingg but that was showing that a credit card was being used that really was not a negative thing but the FICO calc'ed while that charge was on there caused a negative score.

 

A credit card from a major Visa, Mastercard, Discover, and a store card show credit diversification and management responsibility.  Combine that with a car loan, mortgage and a bank/credit union installment loan and you have a good 750+ credit score potential.  

 

Also, note that a FICO score is recomputed everytime you request a new FICO OR a business requests a FICO OR new informaton hits the credit report that changes the score based upon the model.

 

 

The above are what I was able to determine based upon using Scorewatch and noticing when my score changed based upon events.   I'm currently at 740 and will now focus on making sure that multiple cards don't get used and trying to make a better usage of a debit card and direct charges to a checking account.

Moderator Emerita
Posts: 28,095
Registered: ‎04-01-2007
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Re: How many CCs is considered Optimal for FICO Scoring?

Just pay off your balances before the statement drops on all but one card, and your util will be under 1%. No reason not to use the cards.

I've had an $11K balance on a card during the month (new flooring), but I paid it off before the statement dropped. The new highest balance changed to $11K, but the actual balance remained at $0, and my scores didn't twitch.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Member
Posts: 17
Registered: ‎04-17-2007
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Re: How many CCs is considered Optimal for FICO Scoring?


haulingthescoreup wrote:
Just pay off your balances before the statement drops on all but one card, and your util will be under 1%. No reason not to use the cards.


You are ABSOLUTELY right.  I have 3 cc.  One I used to pay all my monthly bills (small CL of $1,200).  At the end of each month right before the statement date hits (this is the date after the due date which is $0) I pay it ALMOST IN FULL.  This means I pay MINUS my credit rebates. So if balance is $100 and I have a $10 rebate, I pay $90 to the card.  Statement date comes, cc applies rebate to my balance ($10 - $10 credit) = $0 balance and I'm ahead of the game.

 

Not only did I get a $100 interest free loan, they even paid me $10 to boot.  That's how YOU become the master of the cc, not the slave.

Visitor
Posts: 3
Registered: ‎09-27-2008
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Re: How many CCs is considered Optimal for FICO Scoring?

The strategy to pay off before the statement looks like a winner.  Just have to time things correctly.  I agree that it does provide the value  to get the discounts/rebates from the CC.
New Member
Posts: 2
Registered: ‎06-25-2009
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Re: How many CCs is considered Optimal for FICO Scoring?

It doesn't seem to matter as much how many cards a person owns, as their available credit.   FICO scores are lowered when cards are closed or limits are lowered.

New Member
Posts: 2
Registered: ‎06-25-2009
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Re: How many CCs is considered Optimal for FICO Scoring?

You can put a reaccuring bill on a card or just use it every once in a while.  Just make sure you can pay the bill in full each month.

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