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Adding Card Conerns

New Contributor

Adding Card Conerns

I am a 24 year old accountant who's a year out of college. I have a solid credit score (Experian = 763), positive cash flow, manage money & credit well, etc.

My primary use of credit cards is to route my daily "cash" activity through them since I take advantage of rewards. I want to get either an AMEX or Discover card since Citi’s Dividend program has slashed its rebate significantly.

However, I feel that I have too many revolving accounts (7), most of which have been dormant for years (4). The accounts are at the youngest 4 years old. They stay open since length of credit history is the main weak spot in my FICO profile.

There is concern on my part that another account will create too much potential debt and will eventually drag on my score, even though I don't plan on using it.



TU 767 EX 761
Message 1 of 7
Moderator Emeritus

Re: Adding Card Conerns

I would suggest reading the stickied thread about "Mastering your Mastercard" at the top of the main page in this forum.  Heck, read 'em all!  Smiley Wink
At a glance, I worry that your non-use cards could be closed for inactivity.
Seven cards isn't THAT many.  I have 12 -- 15 if you could AUs.
Potential debt isn't a problem for your credit score.  Take a look at the explanation of how utility factors into scoring.
Good luck and welcome to the fora!
From 700 in 2008 to 498 in 2012...
4/23/12 -- BK 13 date of filing EQ = 505
4/18/12 -- EQ 498
12/5/13 -- EQ 669
Here we go.... back on track.
Message 2 of 7
Super Contributor

Re: Adding Card Conerns

Adding one or two new cards with your scores should not do serious damage. Your scores will go back up again in 6-12 months as the accounts age.
Message 3 of 7
Valued Contributor

Re: Adding Card Conerns

I don't see any reason why in your situation it would be harmful for you to obtain one more card that would be beneficial to you with a good rewards program that you would use.
Based on your score, you obviously are ablet to manage your money well and I think that's the biggest issue/concern when it comes to holding too many cards. What you get dinged for when applying for new credit is the inquiry and then the opening of new credit. If you haven't been applying for any other credit the inquiry may not impact your score at all, and as for the new card, you will likely quickly rebound within a few statements from any loss you may have incurred  at the beginning. I think the biggest hit people take from opening new accounts is the average age of your credit history. When you open a new account it brings down your average age, if you open several it brings down your average age more... 
In your case, it doesn't sound like you have been going on any apping sprees and adding one more card isn't going to hurt your profile. There are folks here that have scores just like yours or even higher with 2x as many cards as you. So, I wouldn't worry to much.  
Message 4 of 7
Valued Contributor

Re: Adding Card Conerns

Forgot to add, but it's been need to keep the cards you have active so that the creditor doesn't close them and because Fico seems to notice when you have available credit and never use it. I think I've seen it reported here that you do get a little ding for doing that.  I have also noticed getting little notes when pulling my credit reports telling me it was a good thing that I recently made use of available credit. Even if you just charge a cup of coffee and PIF every few months.
Oh, also, maybe you'd be able to do a product change to a rewards program with one of the cards you already have.  If you list the cards you currently have a lot of the folks here would be able to give you an idea of if they may be eligible to convert to some type of rewards program....

Message Edited by UpUpUp on 07-24-2008 11:55 AM
Message 5 of 7
New Contributor

Re: Adding Card Conerns

Thank you for the prompt replies.

Looking at my credit card companies respective rewards programs, they are not any better than what I am getting with Citi. So, if I want to bump up cash back rabates, AMEX or Discover would be my best bet.

I will also be sure to use the old cards every few months to keep them active. Although, a couple of my dormant accounts are charge accounts, one from a retailer that doesn't exist in my area anymore, so they might just stay inactive.

Thank you again for all your help.



TU 767 EX 761
Message 6 of 7
Valued Contributor

Re: Adding Card Conerns

Good Luck. Check out the Chase Freedom Rewards card too. 
Message 7 of 7