topic Re: How many CC will suffice in Credit Cards

How many CC will suffice

VirtualCuriosity — Sat, 10 Nov 2012 00:03:14 GMT

I am trying to rebuild my FICO score. I know time will be my better friend, but this is going to be a hobby in the meantime. I am not really in need of any big purchases soon as I already have a home, AND I will not finance any vehicles (I think). Our budget is fine otherwise since rebounding from disaster several years ago.

I made the apparent mistake years ago of closing all CCs out of frustration. So my EQ shows "There is no recent activity on your revolving accounts" as one of my score downfalls. I also want to drown out some of the baddies that wont fall off for a while with current lines. So, I applied for a Cap1 a week or so ago and got an instant 1k cl. This new card is my only CC. I have already paid most of the 39 annual fee and left a 4 dollar balance. I plan on making very small transactions and leaving a very small balance every month as I am normally a cash only person. I have only one inquiry on my reports, and a 12 yr AAoA showing, however, TU shows only 10 yrs. I am feeling like maybe I should try another app or two, but I don't want to push it. Any advice on how many I should get without inquiries or AAoA hurting the score too much? I was even thinking of the Walmart card for the monthly fakeo score. I don't Walmart, but I do have a Sam's Club membership and I think the Walmart card works there. Thanks for any advice

Re: How many CC will suffice

SportBike4Life — Sat, 10 Nov 2012 00:07:57 GMT

Walmarts cards give you the actual TransUnion FICO score, not a FAKEO score.

Re: How many CC will suffice

SportBike4Life — Sat, 10 Nov 2012 00:10:18 GMT

Personally, I would recommend applying for as many reward cards as you can (that you need, and will use) if you aren't applying for any loans or mortgages any time soon. This is because you can get all of the credit cards that you want now and within 1 year all of these inquires will fall off together, hence boosting your credit score and helping you save money in the long run.

Re: How many CC will suffice

Anonymous — Sat, 10 Nov 2012 00:29:26 GMT

Well what exactly is your goal? Improve your FICO score?

Getting what you don't want and don't have a need for -- a CC -- isn't going to help you.

You are normally a Cash Only person. Then stay true to who you are. There was a reason you cancelled all those cards.

You have a mortgage, no big purchases, and no need to (you think) to get a new car loan. So then, why the fixation on your FICO score?

You got a Cap 1 CC. Leave it at that.

Re: How many CC will suffice

Anonymous — Sat, 10 Nov 2012 00:34:31 GMT

Re: How many CC will suffice

LS2982 — Sat, 10 Nov 2012 00:40:35 GMT

I agree, I would stick with cash if thats what got you where your at now. FICO likes 2-3 cards reporting so if your still interested in giving credit another shot id go for an everyday rewards card that will fit your spending habits. Wait at least 6 months before applying.

Re: How many CC will suffice

SnackTrader — Sat, 10 Nov 2012 03:03:42 GMT

I would be cautious about going out on an app spree with your current baddies showing. I agree with LS for the most part and think you should give your Cap 1 time to age and show your current level of responsibility to creditors. Just having that one card report should help your FICO.

Your primary goal for an ideal FICO should be to prepare for those baddies to fall off. Perhaps add another card or two before the baddies fall off (slowly, and without excessive inquiries), and then do not add any inquiries for a year before the baddies fall off (if you can avoid it). Then, when that last baddie falls off, go for the gold! I bet your score will be through the roof at that time.

Re: How many CC will suffice

Anonymous — Sat, 10 Nov 2012 03:31:26 GMT

I think 2 cards is sufficient Walmart card seems like a good idea.

In the long run, using them regularly is better for your credit, but if you can control your budget better with cash, stick with cash for now.

Re: How many CC will suffice

VirtualCuriosity — Sun, 11 Nov 2012 05:10:27 GMT

Thanks for replies. I went with the two cards (Cap1 and Walmart). Two inquiries now with the two new cards and I will just utilize them monthly, without the interest rates being a factor.

Re: How many CC will suffice

JonStur — Sun, 11 Nov 2012 13:43:51 GMT

I also feel you should apply for a card at your bank, this way you can pay with your credit card and show some utilization, and pay whatever you charge weekly or bi- weekly from your account. I'm at US Bank and I can pay from either of my checking or savings accts. to my credit card via balance transfer thru their website. The transaction is immediate so it theoretically is like paying with cash...

Re: How many CC will suffice

brother7 — Sun, 11 Nov 2012 15:16:08 GMT

Judging from the fact that you opted for a Cap1 card with a $39 annual fee, I'm guessing that you are a rebuilder. Can you tell us exactly which Cap1 card you got?

You mentioned that you will also go for the Walmart card. Which one, the store card or the Discover card? With Cap1 + Walmart, that's 2 cards in your wallet. The Walmart card is good because you get your FICO TransUnion 08 score free on a monthly basis (around the 10th of each month). It'll be a good way to track your progress. Combine this with Credit Karma, which pulls your report from TransUnion, and you have a pretty complete (and FREE) system to track what's happening on your TU report and how it affects your TU FICO score.

I would probably add one more, something easy to get like a store card. To be practical (ie something you'll use), pick a store that you would shop at anyway, even if you didn't have the card. Target or Macy's or a gas card, something along those lines. Store cards are easier to get than VISA/MC/AMEX branded cards so even with baddies, I think you'll get approved. I suggest getting one now because it will help your AAoA later. Down the road, when you get prime cards, you can sock drawer (don't cancel!) what you don't need anymore, to preserve the good aging benefit the card provides.

Also, at the 6-month mark, I would ask Cap1 for a product change (PC) to a card without an annual fee, preferably one with rewards.

Re: How many CC will suffice

VirtualCuriosity — Mon, 12 Nov 2012 09:44:35 GMT

Thanks brother7. That also sounds logical. Maybe I will try a Sears since I am going to need to purchase a new washer and dryer soon. I was going to purchase them outright but maybe a small balance left will help. Plus maybe a discount for using the card. Or a Target card since we seem to purchase there a lot.

And, to answer your questions. Yes I am rebuilding. I app'ed the Capital One Platinum for the 1k instant. Had for a little over a week I think. I paid all but a few dollars of the initial annual and yesterday used it for gasoline instead of cash. Will pay that once it posts. As far as Walmart, I didn't see that it gave me a choice. That card is in the mail. I specifically did that one to see the TU, although I will figure out the rules once I get the card. I will also make small purchases on that one and pay once posted. So, I now have 2 inquiries on reports from these apps.

Re: How many CC will suffice

distantarray — Mon, 12 Nov 2012 09:35:26 GMT

It depends on your income and spending habits. As long as you can keep everything in check give yourself as many reward cards as you need.

Personally I think 5 is enough, 7 if you travel quite often.

BCP for 6% groceries, 3% gas and department stores

Freedom for 5% categories

Sapphire as a portal for Freedom points to get 25% more for travel and 2.68% for dining and travel and 1.34% for everything else.

US Bank Cash+ for 6.25% for restaurants and billpay (5% + $25 extra gift card for every $100 redeemed = 6.25%)

With that combo you won't really need a gas card cause if you have Freedom + Sapphire going from 2012 they had 6months of gas at 5% + 25% more from sapphire = 6.25%+ few more points from Checking with Trifecta and 3% for rest of the year with BCP = 4.625% ($138.75 vs $150.00 on $3,000 gas annually @ $57.69 week) money back on gas. If you spend a lot more then it might be worth it, but $11.25 is not worth for me to get another dedicated gas card. Also if you fill up once a week even at double that spending I don't think it's really worth all the extra troubles, but that's just me, and with the Trifecta Combo you get extra 10 points per card use= $5.20 extra a year so the difference is even less.

Restaurants / Groceries / Gas / Billpay are all about 5% or better, if you fly a few times a year I recommend the Amex Platinum, especially if it includes international flights, and maybe a Starwood or Hilton Surpass for hotel then you should be fully covered.

Also recommend a oh damn card for incase tough times happens card, a low interest card like my Navy Platinum no rewards but a incase stuff happens card to transfer the balances onto a low interest account.

So at the max that's 7 cards, for most peoplel they should be able to deal with 5 like me