topic Re: Beating a dead horse (figuratively speaking, of course). in Understanding FICO® Scoring

Beating a dead horse (figuratively speaking, of course).

Drew — Wed, 19 Nov 2014 19:05:33 GMT

What is the optimal number of credit cards one should have in order to obtain an 800+ credit score?

From what I've read, the number of credit cards really doesn't matter if your sole desire is to obtain excellent credit. I'm more interested, however, in the ideal number of credit cards it takes to break the 800 threshold.

Re: Beating a dead horse (figuratively speaking, of course).

Anonymous — Wed, 19 Nov 2014 20:46:01 GMT

I have 3.... 800 on TU.

Re: Beating a dead horse (figuratively speaking, of course).

jamie123 — Wed, 19 Nov 2014 22:28:55 GMT

It seems to take a minimum of 3 CCs to get into the 800 club but having more would give you a thicker file that wouldn't fluctuate as much when/if you use your credit.

Re: Beating a dead horse (figuratively speaking, of course).

MarineVietVet — Wed, 19 Nov 2014 23:10:53 GMT

@Drew wrote:
What is the optimal number of credit cards one should have in order to obtain an 800+ credit score?

From what I've read, the number of credit cards really doesn't matter if your sole desire is to obtain excellent credit. I'm more interested, however, in the ideal number of credit cards it takes to break the 800 threshold.

I'm not sure there is such a thing. People report very high scores with just a couple of CC's and I'm convinced 2 is all you need if you manage utilization correctly.

I have six CC's but after learning more and more about credit I realize I could do just fine with fewer cards.

But that is my opinion only. Other opinions are just as valid.

Re: Beating a dead horse (figuratively speaking, of course).

NRB525 — Thu, 20 Nov 2014 04:18:42 GMT

@Drew wrote:
What is the optimal number of credit cards one should have in order to obtain an 800+ credit score?

From what I've read, the number of credit cards really doesn't matter if your sole desire is to obtain excellent credit. I'm more interested, however, in the ideal number of credit cards it takes to break the 800 threshold.

On the FICO Simulator, it's telling me I can get past 800 with all the cards I currently have by getting the total open amounts down substantially. That's something like a dozen cards with recent balances. And lots of time spent making payments over the years.

Re: Beating a dead horse (figuratively speaking, of course).

HiLine — Thu, 20 Nov 2014 06:06:03 GMT

@Drew wrote:
What is the optimal number of credit cards one should have in order to obtain an 800+ credit score?

From what I've read, the number of credit cards really doesn't matter if your sole desire is to obtain excellent credit. I'm more interested, however, in the ideal number of credit cards it takes to break the 800 threshold.

Define ideal.

I believe that if you start building credit with a credit card and an installment loan, that you take you to 800 no less fast than a credit history that starts with 10 credit cards and one installment loan. Feel free to prove me wrong.

Re: Beating a dead horse (figuratively speaking, of course).

Anonymous — Thu, 20 Nov 2014 15:05:11 GMT

Whats ideal for you is ideal. I think you can get there if you use credit responsibly regardless of the number of cards and installment loans.

Re: Beating a dead horse (figuratively speaking, of course).

Dw4250 — Thu, 20 Nov 2014 15:16:32 GMT

2-3 bank cards and at least one installment loan. I don't think the number of cards/loans after that matters...

Re: Beating a dead horse (figuratively speaking, of course).

Gunnar419 — Thu, 20 Nov 2014 15:28:10 GMT

I agree that after you've got the 2-3 cards needed to make FICO happy, there is no optimal number. It's more a matter of how old they are, how you manage your util and payments, etc.

FWIW, I'm at 805 EQ with six cards and no installment loans or mortgage. But my payment record is perfect, my AAoA is 20+ years, and my util is under 6%.

Re: Beating a dead horse (figuratively speaking, of course).

HiLine — Thu, 20 Nov 2014 16:31:20 GMT

@Gunnar419 wrote:
I agree that after you've got the 2-3 cards needed to make FICO happy, there is no optimal number. It's more a matter of how old they are, how you manage your util and payments, etc.

FWIW, I'm at 805 EQ with six cards and no installment loans or mortgage. But my payment record is perfect, my AAoA is 20+ years, and my util is under 6%.

Have you found that 2-3 cards are better than 1 card?

Re: Beating a dead horse (figuratively speaking, of course).

MarineVietVet — Thu, 20 Nov 2014 16:29:45 GMT

@Gunnar419 wrote:
I agree that after you've got the 2-3 cards needed to make FICO happy, there is no optimal number. It's more a matter of how old they are, how you manage your util and payments, etc.

FWIW, I'm at 805 EQ with six cards and no installment loans or mortgage. But my payment record is perfect, my AAoA is 20+ years, and my util is under 6%.

More proof that high scores can be obtained without installment loans.

Re: Beating a dead horse (figuratively speaking, of course).

Drew — Thu, 20 Nov 2014 21:17:20 GMT

Does the quantity of credit cards (e.g. 9+) lengthen the amount of time it takes to hit 800?

Re: Beating a dead horse (figuratively speaking, of course).

Anonymous — Sat, 22 Nov 2014 17:48:23 GMT

Depends on when you're getting said cards. If you add one every year to 9 AAoA will drop every year as well as new accounts. If you got 9 cards the first year you had credit.... Yes... It will get you there faster because of all the payment history and age will be significantly more.

Final answer.... It can.... And at the same time it won't. Its how you structure the cards.

Re: Beating a dead horse (figuratively speaking, of course).

core — Tue, 25 Nov 2014 11:48:01 GMT

@Dw4250 wrote:
2-3 bank cards and at least one installment loan. I don't think the number of cards/loans after that matters...

Is there not a penalty for >= 50% of revolving lines reporting a balance?

Is there not a penalty for zero revolving lines reporting a balance?

How does one avoid both of these penalties at the same time with only 2 cards? I thought we were talking about "optimal".

Re: Beating a dead horse (figuratively speaking, of course).

MarineVietVet — Tue, 25 Nov 2014 17:54:55 GMT

@core wrote:
@Dw4250 wrote:
2-3 bank cards and at least one installment loan. I don't think the number of cards/loans after that matters...
Is there not a penalty for >= 50% of revolving lines reporting a balance?
Is there not a penalty for zero revolving lines reporting a balance?

How does one avoid both of these penalties at the same time with only 2 cards? I thought we were talking about "optimal".

You make it as optimal as you can to fit your own situation.

The approach is basically the same with just two cards. Let one report a small balance and the other report a zero balance each month. You might get dinged a few points for "more than half of revolving accounts reporting balances" but IMO it's not enough to worry about.

You can add another card but that is up to you.