topic Re: How many credit cards should I have? in Credit Cards

How many credit cards should I have?

Anonymous — Fri, 29 Jan 2016 04:01:51 GMT

I have 2 cards. Sears by barclaycard (mastercard) and a lowes card. Both with a 2,000 limit. I seem to always have about 1,000 on each. Should I ask for increases or get a new card or cards. Scores are 710 ..708...699.I would like a 100,000 $ mortgage as well asap.

Thanks

Re: How many credit cards should I have?

SouthJamaica — Fri, 29 Jan 2016 04:08:44 GMT

@Anonymous wrote:
I have 2 cards. Sears by barclaycard (mastercard) and a lowes card. Both with a 2,000 limit. I seem to always have about 1,000 on each. Should I ask for increases or get a new card or cards. Scores are 710 ..708...699.I would like a 100,000 $ mortgage as well asap.
Thanks

It would be good to add 1 or 2 bankcards, I would suggest Capital One Quicksilver and Barclays Rewards.

Re: How many credit cards should I have?

creditguy — Fri, 29 Jan 2016 04:08:53 GMT

Three cards is ideal for scoring purposes, although your scores are pretty good already. Since you will be seeking a mortgage I probably wouldn't get anymore cards until you close on a house. I would pay down your current cards and seek CLI's if they are SP's.

Re: How many credit cards should I have?

myjourney — Fri, 29 Jan 2016 04:15:53 GMT

2 cards will do if you have any of the following loans ....SL, Auto...Personal

And before you app for any cards much more info is needed before anyone can suggest options or what you should apply for

HP's last 12 months?

What do you want in a card?

What are you spending habits?

How long have you had the cards?

Baddies?

1st move .....Yes, call on lowes and ask for 25K they'll counter if your eligible

Re: How many credit cards should I have?

Anonymous — Fri, 29 Jan 2016 04:17:57 GMT

Thanks..... another question ....what is an sp?

Re: How many credit cards should I have?

myjourney — Fri, 29 Jan 2016 04:19:58 GMT

@Anonymous wrote:
Thanks..... another question ....what is an sp?

SP= soft pull credit

HP= Hard pull credit

Re: How many credit cards should I have?

Anonymous — Fri, 29 Jan 2016 04:23:48 GMT

Thanks for the insight....I am new to the board and don't understand all the acronyms. Is there a page with an acronym list?

Re: How many credit cards should I have?

myjourney — Fri, 29 Jan 2016 04:25:40 GMT

@Anonymous wrote:
Thanks for the insight....I am new to the board and don't understand all the acronyms. Is there a page with an acronym list?

http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/m-p/88458

Re: How many credit cards should I have?

Anonymous — Fri, 29 Jan 2016 04:26:11 GMT

25k is a lot !!!!! I didn't even conider that. I started with 1000 and they automatically raised it to 2000 within a few months after ontime payments.

Re: How many credit cards should I have?

Anonymous — Fri, 29 Jan 2016 04:28:47 GMT

Thanks again....i now have some homework !!!!

Re: How many credit cards should I have?

myjourney — Fri, 29 Jan 2016 04:34:37 GMT

@Anonymous wrote:
25k is a lot !!!!! I didn't even conider that. I started with 1000 and they automatically raised it to 2000 within a few months after ontime payments.

Lowes card reach for the stars and let them give you what they want.....That way you know that's all they would have given you anyway

Trust me on this Lol

Oh and go do your homework...nice touch Lol

Re: How many credit cards should I have?

Anonymous — Fri, 29 Jan 2016 04:39:07 GMT

Thanks....I don,t have a visa....would that be a logical 3rd card?

Re: How many credit cards should I have?

myjourney — Fri, 29 Jan 2016 04:41:13 GMT

@Anonymous wrote:
Thanks....I don,t have a visa....would that be a logical 3rd card?

It's always nice to have a card for each network..... yes

However is that the only reason for a card? No

Re: How many credit cards should I have?

red259 — Fri, 29 Jan 2016 04:59:59 GMT

I would say three cards for optimal scoring. You can have more than that if you are able to manage cards properly, but at least 3 is probably best. Keep in mind even with two cards you can be in really good credit shape. I agree with the posts recommending lender diversity. You never want all your eggs in one basket and if you can have cards on different payment systems that helps as well. For example, I was in a burger king the other day and they do not accept amex and they do not accept discover. Sometimes there are MC offers that are better than Visa. If you only have two cards and don't currently need a third card or don't know which one to get that is ok. No need to rush out and get a third card until it would work for you.

Re: How many credit cards should I have?

Anonymous — Fri, 29 Jan 2016 05:05:51 GMT

better to ask for increases on the 2 existing cards I guess... rather than a third card. I have an auto loan that is 2 years in good standing.

Re: How many credit cards should I have?

Chris679 — Fri, 29 Jan 2016 09:54:30 GMT

If your looking at a mortgage in the next year, that's the best plan. If its farther away then adding a Visa or MC is not a bad idea. Look for a major lender with a rewards card that's fits well with your spending patterns.

Re: How many credit cards should I have?

takeshi74 — Fri, 29 Jan 2016 14:44:19 GMT

@Anonymous wrote:
How many credit cards should I have?

It's up to you to determine that based on your specific needs/wants. At least 2-3 are generally suggest for scoring purposes. Beyond that, it's up to your criteria and what you can repsonsibly manage. You need to actively monitor all accounts whether they are being used or not.

@Anonymous wrote:
Both with a 2,000 limit. I seem to always have about 1,000 on each.

Are you carrying that much on each or do you just have that much usage? Either way, 50% revolving utilization (balance[s]/limit[s]) is high. Revolving utilization has a a significant impact and factors into Amount Owed:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

You want your revolving utilization to be as low as possible. If you're carrying balances you'll want to get to a point where you're paying every statement balance in full. If you do decide to apply for another card, apply when your revolving utilization is low. General suggestion is do not exceed 30%. However, lower is better as long as you don't have 0 balances reporting on all of them. Optimal is typically under 10% and probably even lower than that.

@Anonymous wrote:
I would like a 100,000 $ mortgage as well asap.

How soon is ASAP? How many months? General advice is no new credit 6 months to 1 year prior to a mortgage but it really depends on one's credit profile. It sounds like yours may be thin so you may want to heed that advice.

@Anonymous wrote:
Thanks....I don,t have a visa....would that be a logical 3rd card?

Payment network can be a consideration but, as stated above, it's not the only consideration.

Instead of picking something and trying to justify it, determine you needs/wants and find the options that best suit your requirements. If you frequented a merchant that accepted VIsa but not the payment networks of your other cards then that, for example, might be why you'd put Visa as a priority in your requirements. Not having a Visa (or not having any X) isn't a useful criterion in and of itself. It's not about collecting. It's about finding what suits you.

What are you looking to accomplish by adding new cards? What specific purpose will each new card serve? Rewards on spend, for example, is a very common purpose. If that's the case for you then you need to look at where your spend is going and look at maximizing rewards on your biggest spend categories. If you want specific features or benefits provided then those could be selection criteria as well.

@Anonymous wrote:
Is there a page with an acronym list?

Link already posted but it is also linked in the stickies. Don't overlook them as a resource. Some subfora have similar info in the stickies but stickies can vary a bit from subforum to subforum.

Re: How many credit cards should I have?

Anonymous — Fri, 29 Jan 2016 18:50:44 GMT

Thank you all very much. I really appreciate all the input.

Re: How many credit cards should I have?

SouthJamaica — Fri, 29 Jan 2016 21:23:16 GMT

@Anonymous wrote:
better to ask for increases on the 2 existing cards I guess... rather than a third card. I have an auto loan that is 2 years in good standing.

having a non-store visa or mastercard would help your credit profile

Re: How many credit cards should I have?

KSK1912 — Fri, 29 Jan 2016 21:33:42 GMT

@Anonymous wrote:
25k is a lot !!!!! I didn't even conider that. I started with 1000 and they automatically raised it to 2000 within a few months after ontime payments.

Take the advise Since you have about $1000 on each of your cards, you are already at 50% utilization. Having the CL increased as much as they give you will help with your overall utilization, but you still need to increase the credit limit on your barclays, which will be a HP, or lower the balance down to $200 or less.

Synchrony is not like any other credit card company. Just to give you an idea, i got approved for Lowes for $300, and in 6 weeks t went up to $12K. If you will apply for a mortgage, since your scores are good already, rather than adding another credit card, go in to your bank, ask for secured loan. Get the minimum amount they give you. Go back the next day, pay 80% of the loan back, and make monthly payments on the remainder of the loan until a month before you app for mortgage. Then pay it off. If you already have 2 revolving accounts and your credit scores are already good, i would rather add an installment loan to your credit report.