Re: How many CCs is considered Optimal for FICO Scoring?[ Edited ]
03-18-2008 12:00 AM - edited 03-18-2008 12:42 AM
Well, I will throw my fish into the pond. It is not the number of CC's that you have, it is rather how you manage them.
FICO looks first at overall %util, which has nothing to do with the number of cards you have, but is the most important factor. But the thrust of this thread is not about overall %util, but rather upon the effect of having many cards. So I will regress to the discusssion of having bucho cards, vs. only a few.
So, with that in mind, be aware that FICO also looks at %util of each TL. So any card, regardless of percent overall util of all cards, will have a neg effect if its individual %util is high. If you put a charge on a low CL card, it will affect your score more than putting that same charge on a high CL card.
Additionally, FICO also looks at the percent of the number of cards (not how much balance is above zero) that have balances at th reporting period. So ten cards, with seven having any balance, regardless of the overall %util or %util or each, is a factor.
So, this is my understanding. Having bunches of cards requires bunches of effort to ensure that each maintains a low reported %util, and further that at least half have reported balances of zero.
Dat beez a lots a woik!
If you have more than a few cards, then you will either need the Mind of Mensa to keep track it all, or be fluid in Excel spreadsheets, and thus be able to monitor each CC before its report date.
OK, if that does not convince you, then let me put you at the shopping mall tomorrow.......
You see this really neat new gizo. Only $200. You plunk out your wallet of ten cards, and whip out the one on top. It happens to be your new Platinum Blue Neat $300 CL card! Neat, huh? But, bud, you are now instantly at 67% util on that Plat Blue Neat card! It reports. If you had put in on another card, then it would be a different credit score. I dont have the Mind of Mensa, and dont carry my lptop to the mall each day so that I can evalutate the %util of each card, and thus where to place my purchase.
I dont want ten cards.
So, for me, getting a new, low CL card just is a pain in the butt to control. I dont have the time to absorb further minor credit hemmorhoids treatments that require daily Preparation H.
How many cards should I have? The answer is, how much time do you have to maintain them?
Message Edited by RobertEG on 03-18-2008 12:05 AM
Message Edited by RobertEG on 03-18-2008 12:08 AM
Message Edited by RobertEG on 03-18-2008 12:12 AM
Message Edited by RobertEG on 03-18-2008 12:27 AM
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Message Edited by RobertEG on 03-18-2008 12:33 AM
Message Edited by RobertEG on 03-18-2008 12:42 AM