Too many credit cards?

[pattycake]

txjohn - I may have you beat.  I am going to go count now.  I have about 17 CC's, one student loan, one mortgage, one car loan and I think that's it.  Everything is paid on time, ALWAYS, since I've joined this forum.  

[Anonymous]

I found her comments regarding store credit cards interesting. If you must close a card they should be the first to go.

I do not have any store cards and will never apply for one and never had one. I do not subscribe to a common opinion that you need at least one to maximize FICO scoring. Additionally, it just appears to me the typical terms and conditions on these cards are just terrible. Moreover,I have not read any concrete evidence of this to be true provided you already have established credit, healthy scores based on you credit history and low utilization.

Does anyone agree or disagree?

[BungalowMo]

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@pattycake wrote:

txjohn - I may have you beat.  I am going to go count now.  I have about 17 CC's, one student loan, one mortgage, one car loan and I think that's it.  Everything is paid on time, ALWAYS, since I've joined this forum.  

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...and a partridge in a pear tree!!!  (paid for, of course!) 

[Anonymous]

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@BungalowMo wrote:

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@pattycake wrote:

txjohn - I may have you beat.  I am going to go count now.  I have about 17 CC's, one student loan, one mortgage, one car loan and I think that's it.  Everything is paid on time, ALWAYS, since I've joined this forum.  

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...and a partridge in a pear tree!!!  (paid for, of course!) 

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....part of the emergency reserves...can eat the partridge and pears while living in the tree 

Message Edited by txjohn on 08-01-2009 08:31 AM

[haulingthescoreup]

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plasticman wrote:

I found her comments regarding store credit cards interesting. If you must close a card they should be the first to go.

I do not have any store cards and will never apply for one and never had one. I do not subscribe to a common opinion that you need at least one to maximize FICO scoring. Additionally, it just appears to me the typical terms and conditions on these cards are just terrible. Moreover,I have not read any concrete evidence of this to be true provided you already have established credit, healthy scores based on you credit history and low utilization.

Does anyone agree or disagree?

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Best I've got is that the credit education page here on myFICO used to indicate that a retail card helped, and we've had some reports by members who understand the scoring system that they saw a score increase that could be isolated out and identified with the addition of the card, so maybe.

I don't think it's a huge effect, though. And if someone wants a store card, they need to investigate what specifically it will do for them as a customer --early access to sales, 0% financing, and so forth. Certainly, no one should ever carry a balance on a store card!

[Anonymous]

I have thoroughly read the education page and that is my point. However, I know there are some very astute members here whom I respect a great deal and I would not dispute their experience.

It just seems to me with scores approaching 800 and no store cards if I applied for one the score hit would far outweigh the benefit and I would not see a rebound from the new inquiry and new account for months. At that time the increase in score could just as well be because of the increase of the average age of all trade lines.

Message Edited by plasticman on 08-01-2009 08:48 AM

[pattycake]

The store cards are good as a jumping off point for people who are establishing credit.  I love HD and Lowe's for the 0% offers - I use them frequently but never pay regular interest on these. 

[Anonymous]

+1

[smallfry]

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@Anonymous wrote:

I have thoroughly read the education page and that is my point. However, I know there are some very astute members here whom I respect a great deal and I would not dispute their experience.

It just seems to me with scores approaching 800 and no store cards if I applied for one the score hit would far outweigh the benefit and I would not see a rebound from the new inquiry and new account for months. At that time the increase in score could just as well be because of the increase of the average age of all trade lines.

Message Edited by plasticman on 08-01-2009 08:48 AM

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In that scenario I wouldn't bother.

[Anonymous]

When my scores were above 800, inquiries did not affect my score in the least, until I had numerous new accounts and my AAoA came down below 4 years.

I have heard many say they think the higher the score, the more these things affect you.  IME, the higher my scores (especially no derogs), the less new inquiries and accounts, or anything for that matter, hurt me.

At 800, and inquiry didn't touch me 1 point.  At 806 9 inquiries were deleted by EQ, not 1 point increase.

From 814/810, I added over 6 new accounts and multiple inquiries and my scores only fell around ~25 to 30 points. 

I personally have experienced that higher scores insullate you somewhat from the normal use of and application for credit.