topic Re: Credit cards in Credit Cards

Credit cards

Anonymous — Mon, 16 May 2011 18:21:18 GMT

I know I have heard having too many credit cards can affect you in obtaining new credit when applgying and even sometimes keep you from increased limits if felt you havev already too many tradelines--my question is:

Does having too many cards also affect your score---even if all in good standings or it mainly the score is based on UTIL not amount that affects your score?

Second question if its too many cards that affects score--should I close some and choose ones in the middle to close just to avoid cancelling my longest tradelines or since they report for 10 years it dont matter which I close or keep--many of my credit limits havent moved...I know the market in todays economy has many companies skeptical..I know in the beginning I was so eager to obtain credit and got over excited LOL but I can truly say I have managed it well and kept from being late etc and proving myself--however now all these cards arent necessary ---a couple will be fine --I have always wished for a card with a real high limit and (one with all my limits combined) but I havent been successful in obtaining one of those regardless of increased income over the years..

Thanks for any advice or input in advance

Re: Credit cards

Anonymous — Mon, 16 May 2011 19:56:11 GMT

@Anonymous wrote:
I know I have heard having too many credit cards can affect you in obtaining new credit when applgying and even sometimes keep you from increased limits if felt you havev already too many tradelines--my question is:

Does having too many cards also affect your score---even if all in good standings or it mainly the score is based on UTIL not amount that affects your score?

Second question if its too many cards that affects score--should I close some and choose ones in the middle to close just to avoid cancelling my longest tradelines or since they report for 10 years it dont matter which I close or keep--many of my credit limits havent moved...I know the market in todays economy has many companies skeptical..I know in the beginning I was so eager to obtain credit and got over excited LOL but I can truly say I have managed it well and kept from being late etc and proving myself--however now all these cards arent necessary ---a couple will be fine --I have always wished for a card with a real high limit and (one with all my limits combined) but I havent been successful in obtaining one of those regardless of increased income over the years..

Thanks for any advice or input in advance

Number of Accounts does not affect your FICO score.

What do you consider too many? I would close or keep cards for other reasons, not the total number.

Re: Credit cards

MarineVietVet — Mon, 16 May 2011 22:32:58 GMT

The number of accounts with balances can affect a score. You can find that and more from reading What's In A FICO Score?

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Credit cards

Anonymous — Tue, 17 May 2011 00:49:28 GMT

Wolf3--I have 9 major cards and 8 store card (which includes a paypal credit account)

All have zero balances --I do have large balances on 2 of the majors (2 with lowest interest rates) minus one with zero percent interest that was offered for the next 21 months--been contemplating transferring one of those over to that and work it down then do the same with the other to save some interest $$$

as for the store cards--I have balances on 3 cards (one which was no interest for 6 months)

thanks thats what I needed to know I have all my CCs sock drawered unless an emergency trying to work down the balances of those with balances ---

Added up all balances and whats owed I am at about 26 percent UTIL I would love to get that down to 10-15 and soon work towards maintaining the best 1-9

Re: Credit cards

Anonymous — Tue, 17 May 2011 00:50:14 GMT

thanks so much.... MarineVietVet

Re: Credit cards

Anonymous — Tue, 17 May 2011 01:19:28 GMT

@Anonymous wrote:
Wolf3--I have 9 major cards and 8 store card (which includes a paypal credit account)

All have zero balances --I do have large balances on 2 of the majors (2 with lowest interest rates) minus one with zero percent interest that was offered for the next 21 months--been contemplating transferring one of those over to that and work it down then do the same with the other to save some interest $$$

as for the store cards--I have balances on 3 cards (one which was no interest for 6 months)

thanks thats what I needed to know I have all my CCs sock drawered unless an emergency trying to work down the balances of those with balances ---

Added up all balances and whats owed I am at about 26 percent UTIL I would love to get that down to 10-15 and soon work towards maintaining the best 1-9

That is a handful of cards, but not necessarily too many. I would consider getting rid of store cards if you never use them. I would consider cancelling any major card whose had fees were not worth the benefits.

Re: Credit cards

tntexans72 — Tue, 17 May 2011 03:01:48 GMT

@Anonymous wrote:
I know I have heard having too many credit cards can affect you in obtaining new credit when applgying and even sometimes keep you from increased limits if felt you havev already too many tradelines--my question is:

Does having too many cards also affect your score---even if all in good standings or it mainly the score is based on UTIL not amount that affects your score?

Second question if its too many cards that affects score--should I close some and choose ones in the middle to close just to avoid cancelling my longest tradelines or since they report for 10 years it dont matter which I close or keep--many of my credit limits havent moved...I know the market in todays economy has many companies skeptical..I know in the beginning I was so eager to obtain credit and got over excited LOL but I can truly say I have managed it well and kept from being late etc and proving myself--however now all these cards arent necessary ---a couple will be fine --I have always wished for a card with a real high limit and (one with all my limits combined) but I havent been successful in obtaining one of those regardless of increased income over the years..

Thanks for any advice or input in advance

if you read in this forum and others, you will noticed that ppl who have a high CL (over $5k) are generally ppl who have a clean CR, AAoA of over 4yrs, Fico score above 700s to name a few. Of course there are very few others who are able to obtain that CL without meeting the 3 guidelines described. Just be patience, use your card and manage your debt wisely, your score will eventually get above 700 and than apply for a prime card (chase, amex, citi, capital venture to name a few) and you will get a nice CL. Patience....

Re: Credit cards

JonStur — Tue, 17 May 2011 03:11:25 GMT

Also do some homework before applying for prime cards. What kind of score, which CRA it pulls, whether you have too many recent INQs for them, etc. A little research can greatly improve your chances.

Re: Credit cards

Anonymous — Tue, 17 May 2011 03:36:26 GMT

Having too many trade lines (whether open or closed) is a Fico negative reason, though I don't know how much impact it has since I have a 791 on TU and this is my only negative:

You have too many credit accounts.
Your FICO score takes into account the number of accounts (such as credit cards or installment loans) on your credit report. You have a large number of accounts. In general, people who have a large number of accounts pose more of a risk to lenders than people with a moderate number of accounts.

Number of your credit accounts currently paid as agreed 16 accounts
FICO High Achievers have an average of 6 accounts currently paid as agreed.

Re: Credit cards

Anonymous — Tue, 17 May 2011 11:30:30 GMT

Sounds good guess I'm going to stay focused and keep doing what I am doing no more credit applying for me...and going to focus on lower over all total UTIL..I am sure this will be a great help....my BK will fall off soon and my trade lines will continue to age ...things can only get better with patience

By the way I pulled my score yesterday 671-equifax (not too bad at all)

I have majors Capital One Chase & Citi I'm sure one of them will see my growth and extend the credit when it's due..until then I'm FOCUSED!

Thanks for all input

Re: Credit cards

JonStur — Tue, 17 May 2011 14:39:58 GMT

Also if there are many TLs sometimes FICO will punish you because you have an abundance of unused credit which gives you the "potential" to suddenly get yourself in debt, yea I know it sounds crazy, punished for keeping your balances low...

Re: Credit cards

MarineVietVet — Tue, 17 May 2011 16:15:56 GMT

@JonStur wrote:
Also if there are many TLs sometimes FICO will punish you because you have an abundance of unused credit which gives you the "potential" to suddenly get yourself in debt, yea I know it sounds crazy, punished for keeping your balances low...

I'm not sure what you mean by these statements. My balances are always very low with utilization in single digits and my scores don't seem to suffer.