topic Re: article: how many credit cards is too many in Understanding FICO® Scoring

article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 14:16:07 GMT

darn it, i was hoping they would say 42 is the right number....

http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/HowManyCreditCardsIsTooMany.aspx

Re: article: how many credit cards is too many

MidnightVoice — Wed, 27 Jun 2007 14:24:02 GMT

"It's a tricky business, but creditors don't care, because they know you need credit. If you are a good, money-conscious consumer who pays for everything in cash, basically you are dead to them. So establishing and using credit wisely is so important," says Rhode.

Re: article: how many credit cards is too many

MidnightVoice — Wed, 27 Jun 2007 14:25:14 GMT

Just remember that the street of credit fairness runs only one way, and it's in the favor of the creditors.

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 17:10:37 GMT

This statement gives me the creepies. -20 per store credit card?

QUOTE
Beware of store credit cards

"Some people go hog-wild at Christmas and open lots of store credit cards to get that 10% to 15% off their purchase," says Cate Williams, vice president of financial literacy at Money Management International. "Relatively speaking, that is a good idea if you pay off the balance and close the card right away. If you don't, then you will be costing yourself more money in the long run when your credit score isn't up to par."

Steve Rhode, president of Myvesta, a nonprofit consumer-education organization, agrees, saying that each time you open a store credit card, 20 points are taken off of your credit score because, he says, "Historically, store credit cards are issued to anyone with a pulse. They issue credit cards to people who otherwise can't get credit."
Source

First of all they make it sound like your score will drop 20, 40, 60, 80.... points if you have a handful of store cards and it won't if you apply for Visa, MC, Dis, Amex.

Second, they don't say if it is for new apps only, or if the card always counts against you. Very misleading article. Or is it?

Were they talking about FICO?

I don't own any store cards yet. I'm still scared to apply.

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 17:20:41 GMT

ilovepizza wrote:
This statement gives me the creepies. -20 per store credit card?

QUOTE
Beware of store credit cards

"Some people go hog-wild at Christmas and open lots of store credit cards to get that 10% to 15% off their purchase," says Cate Williams, vice president of financial literacy at Money Management International. "Relatively speaking, that is a good idea if you pay off the balance and close the card right away. If you don't, then you will be costing yourself more money in the long run when your credit score isn't up to par."

Steve Rhode, president of Myvesta, a nonprofit consumer-education organization, agrees, saying that each time you open a store credit card, 20 points are taken off of your credit score because, he says, "Historically, store credit cards are issued to anyone with a pulse. They issue credit cards to people who otherwise can't get credit."
Source

First of all they make it sound like your score will drop 20, 40, 60, 80.... points if you have a handful of store cards and it won't if you apply for Visa, MC, Dis, Amex.

Second, they don't say if it is for new apps only, or if the card always counts against you. Very misleading article. Or is it?

Were they talking about FICO?

I don't own any store cards yet. I'm still scared to apply.

I hate store cards. Biggest ripoff's out there.

Re: article: how many credit cards is too many

MidnightVoice — Wed, 27 Jun 2007 17:22:39 GMT

Boswd wrote:

I hate store cards. Biggest ripoff's out there.

I have one from a local store. 0 % APR if paid off in 12 months.

10 years old, never late, great TL for TU and EQ.

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 17:23:36 GMT

@Anonymous wrote:
Steve Rhode, president of Myvesta, a nonprofit consumer-education organization, agrees, saying that each time you open a store credit card, 20 points are taken off of your credit score because, he says, "Historically, store credit cards are issued to anyone with a pulse. They issue credit cards to people who otherwise can't get credit."

This statement appears to be completely wrong. Each time you open a store credit card, you would get the usual dings for the inquiry, the new account, and average aging decrease, all of which rebound as time goes by. (Otherwise, my DW would have a score in the 500s, instead of the 730s). And stores do not issue cards to everybody, as anyone who is trying to rebuild their credit can attest.

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 17:32:18 GMT

MidnightVoice wrote:

Boswd wrote:

I hate store cards. Biggest ripoff's out there.

I have one from a local store. 0 % APR if paid off in 12 months.

10 years old, never late, great TL for TU and EQ.

What I don't like about them is normally they'll have an insane insterest rate, it encourgages large purchases, you can't use a store card anywhere but there thus limiting using your card wisely each month for good activity such as groceries or gas and such. If you use it each month to maximize your FICO score that means you are more likely be purchase items you don't need thus wasting money.

The only ones' I would consider are either Lowes or a Home Depot, other's such as Kay, Macy's etc, IMHO are just debt problems waiting to happen.

Re: article: how many credit cards is too many

MidnightVoice — Wed, 27 Jun 2007 17:38:46 GMT

Boswd - in general I agree with you. But if there is a store you use all the time, and not for luxry items or impulse purchases, they can be OK.

And I dare not get a Lowes card

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 17:44:05 GMT

My wife say's the same thing LOL LOL " NO LOWES CARD' !!!!!!!!!!!!! LOL LOL

Re: article: how many credit cards is too many

MidnightVoice — Wed, 27 Jun 2007 17:44:45 GMT

Boswd wrote:
My wife say's the same thing LOL LOL " NO LOWES CARD' !!!!!!!!!!!!! LOL LOL

Glad we are on the same page

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 17:55:43 GMT

Have you seen their lastest gas grilles?: OOOOOOOhh BABY!!!!!!!!smileyvery-happy:

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 17:58:01 GMT

I have a home depot, and I love that card!

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 18:16:35 GMT

if i had a lowes card i would be back in the 400s within the week.

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 19:15:29 GMT

Did anyones FICO scores drop after getting a new store card after 60 days different from a credit card?

Re: article: how many credit cards is too many

MidnightVoice — Wed, 27 Jun 2007 19:18:26 GMT

I have my 4-6 cards, and the last time I got a store card was 1998, and I didn't know myFICO from a hole in the ground at the time

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 21:55:18 GMT

I've gotten a number of cards, including store cards, and I don't think I got extra dings for them being store cards.

Special sale prices, including extra discounts when you use that card, are part of the reason I use them. I currently have a 0% for a year offer on some jewelry I was going to purchase anyway.

Just don't carry a balance at their typical rates.

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 22:08:15 GMT

I wonder if you carry balances on store cards if that hurts your score more then?

Re: article: how many credit cards is too many

Anonymous — Wed, 27 Jun 2007 23:44:49 GMT

No, it just means you're a dork.

(I've done it. At the time, I was also a dork.)