topic Re: How much is too much? in General Credit Topics

How much is too much?

Anonymous — Tue, 26 Jun 2007 18:24:23 GMT

I just went from having 2 credit cards to having 5 credit cards in an effort to open positive trade lines and keep boosting my score.

Is this too many cards?

Message Edited by rifleman on 06-26-2007 11:24 AM

Re: How much is too much?

Anonymous — Tue, 26 Jun 2007 18:33:31 GMT

There isn't any magic number on how many is too many credit cards, it really depends on how well you can manage these cards. If you are having troulbe juggling five cards than yes, if not than 5 isn't too crazy.

Re: How much is too much?

fused — Tue, 26 Jun 2007 18:36:03 GMT

rifleman wrote:
I just went from having 2 credit cards to having 5 credit cards in an effort to open positive trade lines and keep boosting my score.

Is this too many cards?

Message Edited by rifleman on 06-26-2007 11:24 AM

No consensus on this subject at Fico forums. Some say 3, 8, 10 or 30. It all depends on you, but you can certainly build a solid credit card history with five cards. Just use them responsibly and for max FICO points keep util at 1-9%. I have five CCs and that is all I want.

Re: How much is too much?

Anonymous — Tue, 26 Jun 2007 18:40:05 GMT

what about those ppl who only qualify for secured cards? should they get 3-5 secured cards? if all debt is paid off?

Re: How much is too much?

fused — Tue, 26 Jun 2007 18:51:10 GMT

motoracer wrote:
what about those ppl who only qualify for secured cards? should they get 3-5 secured cards? if all debt is paid off?

Your situation is only different in that CLs are usually much lower with secured CCs. That said, you might need more cards so you have more available credit. Util can be harder to manage with low CL secured cards, watch your balances and keep track of all the fees associated with these cards. I don't recommend you go on an app spree like contributor dog did.

Re: How much is too much?

Anonymous — Tue, 26 Jun 2007 18:57:39 GMT

I agree with Fused, let patience take over. Give the card some time to work for you. Good offers will be in the mail before you know. You don't want an inquiry spree as well.

Re: How much is too much?

Anonymous — Tue, 26 Jun 2007 19:02:09 GMT

5 cards is good. Besides scores, I like to leave 1 card at 0% utl each month for lenders to see. I change the cards around so all cards get activity. I feel if lenders see a card not being used they are more likely to feel I am in a better situation. Just an opinion.

Another opinion for obtaining bigger and better credit from prime banks.
Cards are an easy way to build credit history for those with recent negs. If secured cards are all you can get, then they will do. Once you can get unsecured cards, I would start to merge away from secured. Both secured and unsecured help your score if handled responsibly under this current FICO release.

Message Edited by ilovepizza on 06-26-2007 12:02 PM

Re: How much is too much?

Anonymous — Tue, 26 Jun 2007 19:01:41 GMT

u can set your own CL with the amount you deposit!!!

Re: How much is too much?

Anonymous — Tue, 26 Jun 2007 19:03:39 GMT

well said pizza...another thing is get started soon and keep the oldest CC line as if was your first child.

Re: How much is too much?

Anonymous — Tue, 26 Jun 2007 19:08:26 GMT

Haha yeah Orchard Bank is my oldest account and I'm keeping it close like a first child, LOL. I have good things to say about Orchard, it's a good company IMO.

Although my second child (Capital one), I wish I could put up for adoption.

Re: How much is too much?

fused — Tue, 26 Jun 2007 19:10:41 GMT

ilovepizza wrote:
5 cards is good. Besides scores, I like to leave 1 card at 0% utl each month for lenders to see. I change the cards around so all cards get activity. I feel if lenders see a card not being used they are more likely to feel I am in a better situation. Just an opinion.

Another opinion for obtaining bigger and better credit from prime banks.
Cards are an easy way to build credit history for those with recent negs. If secured cards are all you can get, then they will do. Once you can get unsecured cards, I would start to merge away from secured. Both secured and unsecured help your score if handled responsibly under this current FICO release.

Message Edited by ilovepizza on 06-26-2007 12:02 PM

Yes, both sec and unsec CCs are currently treated equally. However, this might change when FICO implements their new scoring model. Tuscani is currently investigating this.

Re: How much is too much?

Anonymous — Tue, 26 Jun 2007 19:20:34 GMT

NEW scoring model? hmm. Yes I think some of the FAKO guys use some model that can tell the difference between secured/unsecured or just low/high credit limits.

According to true credit, there was a time when my low credit limits were hurting my score--I had a $500 limit from Orcahrd bank and a $500 limit from Capital One. It went something like this "NOT enough revolving debt experience --your low credit limits are hurting your score--because your limits are low, lenders may view you are not showing a history of being able to manage higher limits--consider opening another account with a higher limit"

Re: How much is too much?

fused — Tue, 26 Jun 2007 19:52:02 GMT

rifleman wrote:
NEW scoring model? hmm. Yes I think some of the FAKO guys use some model that can tell the difference between secured/unsecured or just low/high credit limits.

According to true credit, there was a time when my low credit limits were hurting my score--I had a $500 limit from Orcahrd bank and a $500 limit from Capital One. It went something like this "NOT enough revolving debt experience --your low credit limits are hurting your score--because your limits are low, lenders may view you are not showing a history of being able to manage higher limits--consider opening another account with a higher limit"

FAKOs, their models are all different! FICO's new scoring model: AUs will no longer get the piggyback points. How many will suffer a big drop in scores, maybe millions. Ouch! Also, if the subprime CCs are going to factor the same way consumer finance loans are, WATCH the H*LL OUT? This is going to have a damaging impact to millions of consumers who cannot qualify for prime CCs and loans. If FICO makes these changes to subprime CCs, say bye bye to the Median FICO score of 723!

Re: How much is too much?

Anonymous — Tue, 26 Jun 2007 19:57:21 GMT

yeah I wonder what the median fico will be then--623? If that's the case I'm only slightly above average. I wonder what impact that drop in fico will have on the economy

I long to be in the 700+ club some day...

Re: How much is too much?

fused — Tue, 26 Jun 2007 20:01:58 GMT

rifleman wrote:
yeah I wonder what the median fico will be then--623? If that's the case I'm only slightly above average. I wonder what impact that drop in fico will have on the economy

I long to be in the 700+ club some day...

Good question! Will lenders and cccs go out of business, no way! Maybe they will have to soften their underwriting but that can be very dangerous. Just look at what is happening with all of the subprime mortgages that foreclosing.

Re: How much is too much?

Anonymous — Tue, 26 Jun 2007 20:50:03 GMT

noticed on another forum that secured cards are scored just like unsecured cards the only thing that effects the score at this point is the CL

Re: How much is too much?

Anonymous — Wed, 27 Jun 2007 01:54:29 GMT

You need to calulate your avg age as well.

Re: How much is too much?

Anonymous — Wed, 27 Jun 2007 01:55:12 GMT

Opps.Double post sorry-

Message Edited by Timothy on 06-26-2007 06:55 PM