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Frequent Contributor
credit08
Posts: 386
Registered: ‎03-27-2008

Re: will one more CC cause big decrease on score

Thanks hauling I knew you that I could count on you I tip my hat to you it would be my pleasure to let you and anyone else here on the forum know what effect if any the card has on my FICO scores. I don"t mind being the "Nurse to the Doctor so to speak"  Insert Smileys    I really appreciate your help.
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credit08
Posts: 386
Registered: ‎03-27-2008

Re: will one more CC cause big decrease on score

Just wanted to give a shout out to my "Peeps" Fused, The New World Man, Smallfry Hauling Up The Score I appreciate all the insight you guys give me on this forum.
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: will one more CC cause big decrease on score

Hey, I'm a peep! :smileyvery-happy:

Thanks, a great late Mothers' Day present. :smileywink: Thanks back to members like you that make this fun.
* 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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RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: will one more CC cause big decrease on score

I am kind curious as to where you received the opinion that 29 CCs is ideal.  I have never seen that anywhere.  To the contrary, FairIsaac risk analysis has stated publicly that 2-3 cards is ideal, and risk rises above that (FairIsaac presentation before the FTC).  FICO scoring is based on their risk analysis.
Aside from the known risk anaylsis, I could not imagine the FICO task of managing 29 open CCs, maintaing the balance on each below 10%, and also trying to keep at least half with no balance.    Why not just get a BT to an existing CC, and thus not incur a new hard inq in obtaining a new TL?
I guess I just dont undestand the FICO strategy in this......
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credit08
Posts: 386
Registered: ‎03-27-2008

Re: will one more CC cause big decrease on score

Hello RobertEG, I read on the forum that FICO will start to decrease your score once you have a total of 29 or more credit accounts on your CR"S. I am assuming that this means open and closed combined but not for sure I have 35 accounts reporting with only 10 of them open all are CC accounts.IMO 29 is the perverbial turning point that can have a negative effect on your FICO scores once again I am not 100% sure on this.
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credit08
Posts: 386
Registered: ‎03-27-2008

Re: will one more CC cause big decrease on score

Indeed so hauling I"m a Peep, your a Peep, She"s a Peep,so on ,so on!!!!!!!!LOLInsert Smileys
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RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: will one more CC cause big decrease on score

Credit08, all I can tell you is that FairIsaac has publically reported their risk analysis before the FTC that anything more than 2-3 cards raises risk, and thus lowers score..  I would rely upon their pronouncments before the opinions of others.  I would find it amazing that 29 revolv TLs would even remotely be viewed in their scoring model as optimal.
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: will one more CC cause big decrease on score

I believe that this question arises because once you hit 30 TL's, you get a red flag next to "total number of accounts" on the Credit-at-a-Glance screen. The legend at the bottom states "Red Flag = Marks an aspect of your credit that is hurting your FICO® score." So for instance, I have a red flag for late payments and now for accounts opened in last year. These flags are matched by negative comments on screen 2 (Understanding Your Score.)

The odd thing is that we have members who have gotten this red flag once they hit 30, but they haven't gotten a negative comment. One possibility is that there are 3 or 4 other negative issues with their reports that carry more weight, so there is simply no room to display yet another comment.

I too would be quickly carried off to the local Special Place if I tried to manage 30 open credit cards! One thing to remember is that this "total number of accounts" includes all TL's, not just revolving, and open and closed TL's. We have had members get the flag because they have a student loan for each semester of college and grad school, so let's say 14, and the loans were consolidated, so the old individual closed loans are now being counted plus the new loans. Add in a few car loans, a personal loan, the usual starter or rebuilder cards that are replaced by good ones, a few accidental cards that were acquired when messing around on sites :smileywink: , an ARM, and then a fixed rate mortgage that replaced the ARM, and it wouldn't be that unusual to hit 30.

I'm beginning to think that whatever penalty might be assessed for "too many accounts" is relatively small. It might be like the CFL ding, that only appears after just about everything else has been cleaned up. So, annoying but inconsequential.

That testimony to the FTC was in the 1990's, and it echoes the High Achievers bit about only having had a few cards over their entire lives:
Number of credit cards: FICO High Achievers have an average of 4 to 5 credit cards (including open and closed cards, bank cards and department store cards).
This has got to come from the days of "Hazel" and Mr. and Mrs. B. Americans use credit very differently these days. I make money off my cards, so although I'm going to start cutting them back, there is no way I would confine myself to 5 cards over my lifetime. (I'd need a time machine to do this, as I'm already beyond this point!) My 80-year-old mother is very conservative financially, but she has had store cards since the fifties, and she probably has two entire Visas as well, so even she doesn't fit this. IMO, this is one of those dinosaur statistics that needs to be re-examined and updated.
* 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
Frequent Contributor
caliborne
Posts: 263
Registered: ‎03-27-2008

Re: will one more CC cause big decrease on score

My dh has over 30 accounts on one report b/c of the student loan thing and two old long paid off auto loans still reporting. The odd thing is the old student loans only report on one of his reports, he had 2 sl per semester (some subsidized and some unsubsidized) so he has a ton and then the consolidation also being reported
FICO 6/2/08 , EX 754, 5/2 TU 720 EQ 722
Frequent Contributor
credit08
Posts: 386
Registered: ‎03-27-2008

Re: will one more CC cause big decrease on score

Yup Robert I do agree that 29 or more open TL"S would be enuff to have me committed some where as I said before I am no expert and maybe It"s possible I mis-understood the information that I read. From my previous 3N1 FICO scores it stated that on average high acheivers had 3-4 cc as you also stated that seems to be reasonable and managable number. Thanks for input

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