What is the optimal number of credit cards to have in your opinion?

[MaxSaver]

Hi,

I just checked my FICO score, I had a 771 TU and a 765 EX. I was shocked at this. I had a secured card (first card) for about 7 months, paid in full every month and never used more than 2% of the cards credit limit (really small limit, used once a month) and paid it off the next day after statement closed. I still have to wait like 5 months for it to graduate to unsecured apparently. I decided to apply for a discover IT card yesterday and got approed for a limit of $7.5K so I'm happy. I will probablys till only charge around ~4% of the limit based on my monthly spending. 

I also have student loans. I started off with ~30K but paid half off in one year on the job and will pay the rest off at a much faster rate by year end hopefully. My oldest account closed 2 months ago (~4 years which I started paying while in college). I'm realizing that as I pay these off the average age of my accounts will decrease and my scores will start taking a hit. I figure I might as well capitalize on the higher scores now and get a few revolving lines and allow them to age. I don't plan on applying for another card for like 6 - 8 months to limit the hard inquiries.

How many cards is it optimal to have if used responsibly to maximize score? I don't plan on any major purchases soon but 2-3 years maybe a car or a house.

P.S. What are the odds of getting approved for any AmEx cards either credit or charge cards with limited revolving history? Also which ones would I possibly qualify for?

[Vegas247]

They say 3 cards is best for Fico scores, and to buy a house, underwriters like to see atleast 3 tradelines anyway...get yourself another card while your at it, so the hard pulls age off at the same time. I have 5 cards as you can see in my signature.....I'm happy with the cards Ihave, and will not get anymore.

[MaxSaver]

Thanks. Wouldn't 2 hard inquiries in a few days have large impact? that will be 3 hard inquiries in 1 year as my last one was last September. 

[Shelly313]

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@MaxSaver wrote:

Thanks. Wouldn't 2 hard inquiries in a few days have large impact? that will be 3 hard inquiries in 1 year as my last one was last September. 

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There will be a minor impact, but when you have more trade lines you've increased your utilization, and on top of that you will be able to show that you can handle mutltiple credit lines.  Therefor, in the long run it will pay off especailly if you don't need to get any cards for a while then you might as well do it now.

[aubie1kenobie2]

That would depend on your needs and the limits you qualify for. In my case, I had to apply for a few more later on since my initial cards had toy limits. For optimal FICO scoring, I believe 3 cards should be fine.

[AeroKrix]

3 INQ may seem a lot to you, but it only really matters on the CCC you are applying for. Some are more sensitive than others, while some are not. If you plan on taking out an auto loan or mortgage within 6-12mo, then I'd keep an eye on those INQ. But if you're just trying to build a thicker credit profile, those INQ will lose their impact in 1 year and fall off in 2. I've seen many approved for prime cards with 8+ INQ at the time of app, then again, YMMV

[MaxSaver]

Ok cool guys. Any suggestions on which card to apply for?

I already have a visa and my discover will arrive at end of week. I'm thinking amex blue cash back card (the one without the annual fee). I can't see the merit of a charge card for me as I doubt I will accrue enough travel/points for it to be worth it. 

I can't find any decent mastercard rewards cards. 

[Shelly313]

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@MaxSaver wrote:

Ok cool guys. Any suggestions on which card to apply for?

I already have a visa and my discover will arrive at end of week. I'm thinking amex blue cash back card (the one without the annual fee). I can't see the merit of a charge card for me as I doubt I will accrue enough travel/points for it to be worth it. 

I can't find any decent mastercard rewards cards. 

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I would try for the amex card first, before you apply for anything else.  I think they can be inquiry sensitive from what I've heard.

[Vegas247]

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@MaxSaver wrote:

Ok cool guys. Any suggestions on which card to apply for?

I already have a visa and my discover will arrive at end of week. I'm thinking amex blue cash back card (the one without the annual fee). I can't see the merit of a charge card for me as I doubt I will accrue enough travel/points for it to be worth it. 

I can't find any decent mastercard rewards cards. 

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Yes AMEX BCE is my vote....No annual fee! It looks like you are not a heavy spender and keep utilization low, which is great, so better not to get the BCP because of the AF, unless you spend alot on Groceries.... I have Visa, MC, AMEX and Discover. I wanted the complete set so to speak.

[MaxSaver]

Alright guys. I think I'm gonna take your advice and hit up AmEx and see what happens. I'm hoping within 6 months the hard inquiry impact will be gone and both accounts with age at the same time. the average age of my accounts will decrease but I'm not spend heavy so I feel okay managing the cards and over time the accounts will age together. Plus build history with multiple companies.