Is it better to have more than 1 CC?

[msheresy]

My boyfriend has never had a cc until recently. He never wanted one and never had a need. I talked him into it because I felt that it would be a smart choice. I was approved and now has a BOA AMEX with a 6600 CL as his first card. Is it ok to just have one card or should he get more?

[Anonymous]

I would say he definitely needs more than one....three would be a good start. Plus get an installment loan as well !

[Anonymous]

Should have cards from different lenders in case one tries to pull a fast one and rate jack.

Having different network cards is good also especially during holidays when VISA/MC/AMEX/Discover networks can get hammered and go down. Having backups is always good.

Having too few accounts will make some lenders nervous as well. They don't have enough data to gauge your risk.

[haulingthescoreup]

Ideal minimum is three - four cards from the Mastercard - Visa - Discover - American Express category (bank cards.) Maybe one purely store or gas card, without a MC/ Visa etc symbol on them. If he has several installment loans (mortgage, car loan, student loan, etc.), he needs to have as many CC's as loans, plus at least two more. That's because open loans will always report a balance, and your scores do better to have fewer than half of all your accounts (loans, mortgages, CC's) reporting balances.

If he's only going to have a few cards, they should all be from different banks/ issuers. And it's better to get a card with a lower limit initially from a prime bank than a card from a different bank that will drive him nuts with fees, poor service, etc.

[thrasher865]

huh, I thought the half accounts reporting balances only applied to revolving accounts

[smallfry]

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@thrasher865 wrote:
huh, I thought the half accounts reporting balances only applied to revolving accounts

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Total of all open accounts.

[haulingthescoreup]

Half or fewer of ALL accounts, plus fewer than half of revolving accounts.


edit to add: whoops, sorry, smallfry, I got interrupted while doing my post, and you beat me!

Message Edited by haulingthescoreup on 06-04-2008 05:11 PM

[thrasher865]

that means I need to go apply for another card. Glad I have you guys

[SonorityGenius]

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haulingthescoreup wrote:
Ideal minimum is three - four cards from the Mastercard - Visa - Discover - American Express category (bank cards.) Maybe one purely store or gas card, without a MC/ Visa etc symbol on them. If he has several installment loans (mortgage, car loan, student loan, etc.), he needs to have as many CC's as loans, plus at least two more. That's because open loans will always report a balance, and your scores do better to have fewer than half of all your accounts (loans, mortgages, CC's) reporting balances.

If he's only going to have a few cards, they should all be from different banks/ issuers. And it's better to get a card with a lower limit initially from a prime bank than a card from a different bank that will drive him nuts with fees, poor service, etc.

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As usual this is AWESOME advice!!!! not summarized anywhere else on any other "credit 101" sites but the above is a formed substance from Hauling's consistent presence here at the forums where such topics are debated, researched, and proven with results!!

Its perfect advice for anyone just starting out, thanks hauling!!

[haulingthescoreup]

Hope it helps those few like you and thrasher865 and the others just starting out and doing their research! It all comes from the contributions of the members here, plus my glaring at my scores and cussing out TU.

What I wouldn't give to be starting from scratch, knowing what I know now. On the other hand, since I'm 53 now, that means I'd be 73 before my oldest account hit 20 years, so mebbe not.

BTW, thrasher and other new members, if you haven't seen it already, check out the FICO High Achievers thread. It's linked on my siggy below, and it comes from my pressing my nose against the window, watching psychic and krystofur and masdeocho (and now marty!) and the others in the upper stratosphere of credit, sipping their FICOtinis and wailing about their Signature cards not reporting properly.