topic Re: Optimal number of revolving TLs and utilization percentage in Credit Cards

Optimal number of revolving TLs and utilization percentage

Anonymous — Thu, 17 Apr 2008 17:44:40 GMT

Fine folks,

I am wondering what the FICO algorithm considers to be the optimal number of revolving TLs and, concurrently, the best utilization percentage. Here is what I have at present:

BoA Visa: $15,800 CL, $0 balance
BoA MC: $25,600 CL, $324 balance
Amex Blue: $9,000 CL, $0 balance
Amex Platinum: no preset limit, $0 balance
Amex Executive: no preset limit, $0 balance
Amex Platinum Business: $17,500 CL, $0 balance (not reported to CRAs, regrettably)
HELOC: $31,000 CL, $0 balance
Overdraft LOC on joint acct: $5,000 CL, $0 balance

My other TLs are three installments (two mortgages and one vehicle loan). I have no derogs anywhere in my report.

Since two of the Amex cards are considered "open-ended" (PIF) accounts, do they count in utilization? Would my score be helped if (1) I paid down the BoA MC further and/or (2) applied for an additional revolving CC and put a small balance on it?

Thanks for any advice you warriors can give!

Re: Optimal number of revolving TLs and utilization percentage

Anonymous — Thu, 17 Apr 2008 17:49:58 GMT

I think a little more diversification would be better for you. Maybe a Citi card and a Chase card just incase. It's not always good to have all of your eggs in one basket.

Re: Optimal number of revolving TLs and utilization percentage

Creditaddict — Thu, 17 Apr 2008 17:57:52 GMT

What's amex executive?

Re: Optimal number of revolving TLs and utilization percentage

Anonymous — Thu, 17 Apr 2008 18:16:13 GMT

Amex Executive Business offers a free companion ticket on domestic air travel every year, in addition to other travel perks. I could probably do better, and I rarely use the card, but I've had it for 16 years and it certainly helps with my average age of accounts.

Re: Optimal number of revolving TLs and utilization percentage

Anonymous — Thu, 17 Apr 2008 18:19:07 GMT

Thanks for the advice! I've definitely considered diversifying my credit card "portfolio." Which provider do you think is best: Citi or Chase? Or someone else? I have a recently paid-off mortgage with Chase, so they either love me or hate me -- can't venture a guess as to which.

Re: Optimal number of revolving TLs and utilization percentage

Anonymous — Thu, 17 Apr 2008 19:44:57 GMT

I think most of the board member here would rate Citi over Chase, but both are great prime companies! Get both if you want, it is up to you!