How many credits lines at once is too many?

[Anonymous]

In July of this year. I opened a credit card for 300 dollars through orchard bank unsecured. Everything is in good standing.

But I want to have multiple low UTI cards going so they can see how well I'm managing credit.

I was "pre-approved" for a Capital One card. Is it too soon? Should I let it go - wait a few months then apply for another card?

[Anonymous]

Hi

Based on your CR, I wouldn't get more than 2.

If you apply for many cards in your case, you will look like a big risk.
Low interest is a feature mostly credit risky people seek, who plan to keep a balance. Banks know this.

In the past they awarded high limits, but the new laws and economic conditioned meant banks had to clean up their books and reduce the risks.

I had only 2 credit cards for over 5 years.

Only got more cause the promotions were really good recently.

Good Luck

[Anonymous]

so does it matter how long its been since you applied and received credit on another card?

Will it bring my score down?

 23.9 apr on the capital one card which is positively disgraceful compared to my orchard bank 8.9 card... blegh

So i wasnt planning on using it for much, only putting under 9% util on it just to show it as active, open and being managed.. 

[Anonymous]

30 days seems to be the window on inquiries.

I would call the bank and ask how you can improve things and focus on using the cards you have, versus applying for more credit.

Cheers

[haulingthescoreup]

When you're rebuilding, all you need are two cards and patience.

You'll find that once your credit has improved, you'll be really irritated at low-limit starter cards that won't grow with you.

Be sure to research here on the forums the quirks of your current cards. Use them, and pay them promptly every month, ideally before they report. Lather, rinse, and repeat, and wait 6 months. Twelve months would be better, but I know how we all are, lol. After 6 months of them reporting, pull your EQ and TU FICO's again, see where you are, and then go for ONE more card, a better one. After 12 months, you will probably be able to get several more good cards from good banks.

But simply acquiring a bunch of cards isn't going to jump-start you past the necessary time it takes to demonstrate good credit management. Good luck!

[Sparkz1920]

On another board im on, i was told FICO likes to see more then 4 cards, but also not too many at once. I know i have too many TL's.....11 of them,

But when I had 1 card, FICO gave me the message that i didnt have enough accounts. Then i got approved for 3 in one day, and then they reported, and FICO said that i had a good amount of credit.

Just having First Premier was not cutting it. I went from a 603 to a 601 at first with the inquiries and credit, and then i got some more cards and it shot up to a 625. Got an account to be marked as paid and now its a 636

TU went from a 601 to a 626 by deleting 2 baddies and new credit

Its up to u.

[Anonymous]

I think if your FICO  is under 700, its not good to go beyond 2 cards.

It is a risk, getting in the same trouble that got you under 700 in the first place.

I got to 790 with two cards.

Now 783, after two inquiries

Doubt I could have done that if I had 4 cards.

Just me and not you.  I do now have 4 cards, but only recently.

Cheers

[haulingthescoreup]

Yes, the long-term goal is to have 3-5 good cards.

The problem is that many rebuilders think that they need lots of open credit lines. Yes, it absolutely helps to have new clean credit to drown out the old bad credit, but the cards that most rebuilders can get are very limited in potential growth, and they're often very abusive in terms of fees and restrictions on payments. Anyone who has read exasperated posts by cardholders will realize this.

So my advice is to pick a couple and grit your teeth. Let your scores rise from the usage on these two, and then start acquiring better cards, one every six months or so. That way you can close out the rebuilders without worrying about the long-term damage to your length of history.

It's different if your scores are halfway decent (680's and above, let's say.) That makes you eligible for a different and better range of cards, and a well-planned app spree might very well make sense.

Kinda all depends on where you're starting from!

[haulingthescoreup]

---

uaflyer wrote:

I think if your FICO  is under 700, its not good to go beyond 2 cards.

It is a risk, getting in the same trouble that got you under 700 in the first place.

I got to 790 with two cards.

Now 783, after two inquiries

Doubt I could have done that if I had 4 cards.

Just me and not you.  I do now have 4 cards, but only recently.

Cheers

---

uaflyer, if you still have only two open revolving accounts, you have at least one more CC waiting for you without much of a score penalty, unless it would severely drop your AAoA.

Most of us have found that it takes at least 3 cards, preferably from different lenders to avoid their periodic weirdness, to maximize our scores, our rewards, and our financial diversification.

If you're happy with two, great, but you might want to think about whether there's one more area in your finances where you could use a good rewards program.

Congrats on the very nice scores, and thanks for testifying that this can be done with only two open cards!


eta: if you haven't already, check out the FICO High Achievers thread linked in my siggy. We've collected FICO feedback on member's reports and reasoned backwards in an attempt to see which collections of credit behaviors makes FICO happy. And it's interesting to see that it's not just one narrow profile --there are several ways of hitting the high numbers. You've found one.

Message Edited by haulingthescoreup on 09-16-2009 06:58 PM

[Anonymous]

In my case what got me into debt was medical bills - not credit cards.

I only have one open credit card for 300 dollars and car loan in perfect standing and a couple medical collections still remain that im trying to work out... but i dont want to apply for and accept this pre-approved cap one card and have hard inquiry on my report that drops my scores and then the open line of credit is "Not good"...