topic Re: The final word on # of credit cards and my credit score? in General Credit Topics

The final word on # of credit cards and my credit score?

Anonymous — Tue, 25 Feb 2020 00:14:32 GMT

I'm wondering if somebody can help answer this once and for all. I hear mixed opinions and I figure somebody here might know better.

Since I started fixing my credit, I've been receiving all of these offers in the mail for new credit cards.

Now, assuming 100% financial responsibility- would it benefit me and my score to open as many credit cards as I please? Say I accepted every single credit card offer sent to me, but didn't use any of them. Would that help or hurt my score? Assuming I rotated them so that they're used once every few months, shouldn't that theoretically help my score because it will raise my total available credit and lower my ratio used?

Is there any negative to having TOO many credit cards (asside from responsibility issues)?

Re: The final word on # of credit cards and my credit score?

RSX — Tue, 25 Feb 2020 00:23:32 GMT

positive
You might end up with lower Util because of higher total CL

negatives will.be

1. lots of HP/ Inquiries

2. Low average age of accounts

3. Low age of youngest account

4. possible multiple Annual Fees

i would say get 1 card now, then wait 6 months before another

getting lots of Offers isn't a reason to start taking them.

Re: The final word on # of credit cards and my credit score?

Anonymous — Tue, 25 Feb 2020 00:44:23 GMT

Score will actually take a hit if you add a ton of accounts because you'll crash your average age of accounts in addition to taking a ton of inquiries.

FICO scoring only cares about 3 cards. That's enough to avoid the greater than one third of cards with a balance penalty some scorecards have. Adding additional cards won't directly raise your scores but they help with utilization which can help if you let large balances report.

Re: The final word on # of credit cards and my credit score?

RSX — Tue, 25 Feb 2020 00:47:58 GMT

Actually the only positive I listed was gaining a larger Total CL

aince you said 100% fiscal responsibility, that means carrying zero balances, so this won't help

so getting new accounts now, if you don't need them, will be a mostly negative experience for you.

when you are rebuilding, you want to take all the right steps, not any missteps.

Re: The final word on # of credit cards and my credit score?

Trudy — Tue, 25 Feb 2020 01:19:23 GMT

If you're just starting and have < 3 cards, very low age of accounts and you have time to grow your profile and won't need a MTG or auto loan in the next year or two it may be a good idea to think about more cards (not every offer) since it may not greatly impact your ages and may actually pad your profile for UTL if not used up. IMO, better to take the hit early in the journey and start growing your profile, and you will take a hit for new accounts and HP's. Although you can report a balance and pay before the due date and not be charged interest, the higher CL allows for you to report more if needed without possibly hurting your UTL when it comes to scoring. It's a profile specific call.

I'm not the one but if you provide your current scores and age of accounts some here can advise better how more new accounts may hurt or help your score in the future outside of reducing you ages if your current age is low enough for it to be beneficial.

Just my opinion.

Re: The final word on # of credit cards and my credit score?

Anonymous — Tue, 25 Feb 2020 01:23:42 GMT

Yeah well I mean, my score is at 650 right now, up from a low of probably 500. All I've been doing is opening accounts and paying them down to 0 every month. I started with 1 card, the only one I could get and slowly accumulated 3 more.

So, at this point I have 4 general purpose cards and a couple more store specific cards, for a total of 7 cards.

(Cap1 quicksliver, cap1 quicksilver one, and 2 other starter cards, 3 store ccards)

I really only use 1 of them each month then I rotate to the next for the general ccards, store specific I do my shopping at these places and pay it off... so I've really just moved all my spending to ccards and most of my cash goes directly to paying bills.

And the offers keep coming.

Re: The final word on # of credit cards and my credit score?

tcbofade — Tue, 25 Feb 2020 01:29:15 GMT

So no.

If you've got seven open revolvers, you don't need any more accounts to boost your score.

As already mentioned, three is enough.

Re: The final word on # of credit cards and my credit score?

RSX — Tue, 25 Feb 2020 01:29:26 GMT

I think your current plan of rotating monthly and paying off is great

with 7 cards already, I would say don't apply for any new ones

grow the CL on the ones you already have.

Re: The final word on # of credit cards and my credit score?

Anonymous — Tue, 25 Feb 2020 01:29:51 GMT

I might add, my oldest account is not new... I have accounts that go back 10-15 years, but I had stopped caring and paying for things I had borrowed in my 20's, so I have a lot of derogatory marks on my report that will be falling off here shortly but I'm also slowly paying off.

So no I have a track record, I just recently started doing well with my cards in the past 1-2 years

Re: The final word on # of credit cards and my credit score?

Anonymous — Tue, 25 Feb 2020 01:31:38 GMT

Alright, sounds good. Thanks for the advice everybody. I'll work with what I have.

Re: The final word on # of credit cards and my credit score?

Trudy — Tue, 25 Feb 2020 01:34:10 GMT

Yeah, forget what I said since it doesn't apply to you Just keep on paying on time and grow your garden. Good luck.

Re: The final word on # of credit cards and my credit score?

Trudy — Tue, 25 Feb 2020 01:49:31 GMT

Forget the offers. They just want your business. I think many are predatory based on certain scores, and not very high scores. I still receive some offers and shred everyone I get. I can go get what I need at this stage in my journey. Remember (maybe it's still a thing) offers came like an avalanche when I was in college (no income) and when my scores were much lower (they wanted and assumed I'd be paying interest in my opinion). I still get some offers, but as my scores rose I saw fewer.

Re: The final word on # of credit cards and my credit score?

Anonymous — Tue, 25 Feb 2020 12:18:50 GMT

yea, this last one i just looked at had an apr of 35% with a $125 annual fee lol, does it get any worse than that?

Re: The final word on # of credit cards and my credit score?

Nomad3 — Tue, 25 Feb 2020 19:38:04 GMT

@Anonymous wrote:
yea, this last one i just looked at had an apr of 35% with a $125 annual fee lol, does it get any worse than that?

You have the cards, let em simmer. Don't take the predators bait!

Soon you will be able to pick and choose from any card you want

Re: The final word on # of credit cards and my credit score?

Anonymous — Tue, 25 Feb 2020 22:43:07 GMT

Thanks for the encouragement! You don't realize, or don't care (at least I didn't) when you're young how badly it sucks to have bad credit.

And I hope so! I really want one of those cool shiny black metal american express cards!

lol no but really, my end-game cards are a Discover IT and Cap1 Venture with high enough limits that those are the only 2 I need.

That would be nice!

Re: The final word on # of credit cards and my credit score?

Anonymous — Mon, 02 Mar 2020 04:32:07 GMT

I respectfully disagree that three cards is sufficient as there are thresholds under 33%. Nevertheless with seven cards, you have plenty and you don’t need any more. Grow your garden.

Re: The final word on # of credit cards and my credit score?

AllZero — Mon, 02 Mar 2020 04:36:58 GMT

@Anonymous wrote:
I respectfully disagree that three cards is sufficient as there are thresholds under 33%. Nevertheless with seven cards, you have plenty and you don’t need any more. Grow your garden.

@Anonymous I agree with you. For the older scoring models EX2, TU4, EQ5, it requires to be under a lower threshold. To your recollection, what is that threshold, 15%, 20%, 25% of cards reporting a balance?

Re: The final word on # of credit cards and my credit score?

Anonymous — Mon, 02 Mar 2020 05:09:07 GMT

I have found 15% on EX2. Reference the thread by @calyx where it was asked is it worth it EX2. I think 11 points were gained by hitting the 15% threshold.

depending on scorecard YMMV.

Re: The final word on # of credit cards and my credit score?

Anonymous — Mon, 02 Mar 2020 05:10:04 GMT

There’s also a 20% line on EX2.

Check that thread, it had a lot of good data DPs.

Re: The final word on # of credit cards and my credit score?

AllZero — Mon, 02 Mar 2020 05:16:27 GMT

@Anonymous wrote:
I have found 15% on EX2. Reference the thread by @calyx where it was asked is it worth it EX2. I think 11 points were gained by hitting the 15% threshold.

depending on scorecard YMMV.

Thank you for your feedback. I noticed threshold over 20% on my score card. I haven't notice one lower than 15%. I'll pay closer attention.