topic Re: Number of Accounts is LOW! HELP! in Credit Cards

Number of Accounts is LOW! HELP!

800who — Fri, 03 May 2019 12:37:14 GMT

I currently have 3 accounts, 2 CCs in the sig and an auto lease. Those two CCs cover 100% of all my categories of expenses and I can't really justify getting another card unless it were like a Citi DC which would give me another .5% CB but it would render my Amex useless. What could be another account I could open in attempt to diversify for score purposes. I have a TU 780, so I'm not desperate, I guess I am trying to give myself the most leverage.

Re: Number of Accounts is LOW! HELP!

KLEXH25 — Fri, 03 May 2019 12:56:31 GMT

You are pretty golden right now with your accounts and score, and don’t “need” another account. However, if you decide you’d like another CC, I’d say get a Visa or MasterCard, since you don’t have either and they are the most widely accepted (especially abroad). Do you travel at all? Perhaps earning miles or travel benefits would be useful. I, myself, am eyeing the Uber Visa because it offers additional discounts that my current cards don’t. There are lots of options, you just have to do a little homework and see what will benefit you the most.

Re: Number of Accounts is LOW! HELP!

800who — Fri, 03 May 2019 13:22:26 GMT

I don't do any travel at all, I don't do hotels(tried to stay at a hotel for the first time a couple weeks ago and my reservation that I made online was not honored due to that I'm not 21 years old). I really aim for the cash back cards because they make the most sense for my spending.

Re: Number of Accounts is LOW! HELP!

simplynoir — Fri, 03 May 2019 13:26:33 GMT

If you're looking for cashback as a 3rd card I would maybe consider the Chase Freedom card. Rotating categories every three months like the Disco IT and it won't interfere with your current spending unless it's a category you'll know you'll use it on otherwise use your other two cards as you are doing right now.

Re: Number of Accounts is LOW! HELP!

SouthJamaica — Fri, 03 May 2019 15:06:53 GMT

@800who wrote:
I don't do any travel at all, I don't do hotels(tried to stay at a hotel for the first time a couple weeks ago and my reservation that I made online was not honored due to that I'm not 21 years old). I really aim for the cash back cards because they make the most sense for my spending.

I agree with @KLEXH25 that you should have a Mastercard or Visa. Too many places don't accept Discover or Amex.

I agree with @simplynoir that Chase Freedom is a good cash back card; others are Chase Freedom Unlimited, and Citi Double Cash.

Re: Number of Accounts is LOW! HELP!

Revelate — Fri, 03 May 2019 15:15:10 GMT

Really need a better idea of what you do spend money on rather than what you don’t.

For example big difference if you are shopping for groceries vs. eating in restaurants and neither is covered well by your current portfolio.

If you have a rough idea on what your major spend line items are we can give you better advice.

Re: Number of Accounts is LOW! HELP!

Shooting-For-800 — Fri, 03 May 2019 15:15:32 GMT

Ducks Unlimited is a Visa (Signature) and pays 5% on gas and 5% on sporting goods with no AF.

Savor is a WEMC and pays 4% on dining and 4% entertainment and gas a $500 SUB.

Re: Number of Accounts is LOW! HELP!

Anonymous — Fri, 03 May 2019 15:52:29 GMT

OP, do you have any closed accounts on your CR in addition to your 3 open accounts? I ask because closed accounts count equally toward file thickness, so I'm trying to gauge if your file is indeed thin or not at this point.

I do think another CC wouldn't be a bad idea and something like Discover or Chase Freedom that may have 5% rotating categories that suit your spend could be beneficial. Chances are those 5% categories at times will render your current 2 cards useless during certain quarters, but that's OK as you'll be getting more CB.

Chase Freedom would be my vote as you're young and it's great to get a Chase card early on since they're likely not going anywhere being the biggest bank in the country. My pops still has his original Chase card (his oldest account) which is about 50 years old.

Re: Number of Accounts is LOW! HELP!

Anonymous — Fri, 03 May 2019 16:55:41 GMT

Sounds like my dad and his AmEx green card with the “Member since 72” on it!

Re: Number of Accounts is LOW! HELP!

AverageJoesCredit — Sat, 04 May 2019 00:24:44 GMT

Dont listen to all the Chase heads Just grab a DC , 2% boom. Anytime business goes away from Chase an Average Joe gets a smile

Re: Number of Accounts is LOW! HELP!

M_Smart007 — Sat, 04 May 2019 00:31:45 GMT

You Might Take a look at the US Bank Cash+

Re: Number of Accounts is LOW! HELP!

Anonymous — Sat, 04 May 2019 01:26:44 GMT

just get a no Af good cash back card in all catagories that you can really benifit from there are plenty

Re: Number of Accounts is LOW! HELP!

joltdude — Sat, 04 May 2019 18:33:32 GMT

Supposedly FICO scoring does tend to see 3 cards reporting as a sweet spot for scoring purposes.. That said... In your situation.. it be good to have a Visa/MC in addition to your other cards.. because theres still a lot of places that dont take Amex or Discover.... You can find something with good point/cashback potential.. may not be "optimum".. And from personal experience, there are good reasons to use an Amex even though you dont get the most points or cashback on the purchase possible,but there still are features like purchase protection and such that can make it more valuable than the points.. As I recently discovered when I dumped a hot tea into my Chromebook..... Fortunately someone on here asked me the question what did I use.. and i was like Amex Cash Magnet... it had a sub and a 0% offer as well as a interesting split payment option... It saved my bacon..... losing 0.5% CB vs the entire purchase cost..... Thats value =)

Re: Number of Accounts is LOW! HELP!

Revelate — Sat, 04 May 2019 21:32:10 GMT

3 is good for 2/3 of the bureaus, need to be at 4 for EQ FICO 8 though it's an absurdly minor ding.

Sadly the older models you need more, possibly 5-6 and that doesn't include optimization for those of us that have installment loans... need an absurd number of open revolvers to optimize that fully so end of the day I'd probably just suggest 4 revolvers for everyone as even the best FICO 2 optimization for me was only worth +7 points on a clean scorecard.

Re: Number of Accounts is LOW! HELP!

DebtJoe — Sat, 04 May 2019 23:16:35 GMT

If you really have no use for a 3rd card because you have all your major categories covered, just get one for the potential positive scoring impact.

Go with something (anything) with a no annual fee and just toss a small recurring charge on there each month (Netflix) and setup your auto pay for the card. Throw it in your sock drawer, cut it up, whatever. I have an HSBC Mastercard that is pretty much useless for anything other then padding my credit utilization. I use that card for Netflix and that's all.

Re: Number of Accounts is LOW! HELP!

Lucifer — Sat, 04 May 2019 23:34:34 GMT

Something simple.....

I'd grab a Citi DC or maybe a US bank cash back card but I would have at least one MC/Visa.... And by at least one I mean 3 or 4 :-)