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credit card diversification

Anonymous
Not applicable

credit card diversification

Im on the way to rebuilding my score with an auto lease that is a year old that has been paid on time.  I then went with a starter cap one card and a discover card.  My score is now around 670.  From the knowedgeable ones out there, where would one look next to add a card that has favorable terms and what type of score would I need to start adding the desirable cards available?  I am truly just learning the right way to build my score any help would be appreciated.

Message 1 of 29
28 REPLIES 28
redpat
Senior Contributor

Re: credit card diversification

Diversification isn't really that important.  The most important thing about a credit card is the type of reward program you want and where does most your spend occur.  I think too much is put into thinking one has to have a card from all the majors, you really don't have to.

 

First - Rewards

Second - Research cards that suit your spend

Third, - Get data points for the cards you want.  From these forums or credit pull database.

Fourth - Don't do a app spree.

Personal Cards: Amex Plat | Amex Delta Res | CSR | Citi AA Exec Business Cards: Ink+ | Amex BGR
Message 2 of 29
Anonymous
Not applicable

Re: credit card diversification

Cause I hear about getting one from Chase or Amex or even one of the more prestigious cards would be the next step.   However, what you are telling me that as long as one matches your needs and it is managed properly it really doesn't matter.  That's interesting and contrary to what I read.  Thanks for the information.

Message 3 of 29
Anonymous
Not applicable

Re: credit card diversification

also, what is considered the most optimum amount of cards to own in order to achieve the best score?

Message 4 of 29
redpat
Senior Contributor

Re: credit card diversification


@Anonymouswrote:

Cause I hear about getting one from Chase or Amex or even one of the more prestigious cards would be the next step.   However, what you are telling me that as long as one matches your needs and it is managed properly it really doesn't matter.  That's interesting and contrary to what I read.  Thanks for the information.


Cards are not prestigious.  It's how you use them and  that you get the best bang for your dollars spent.

Personal Cards: Amex Plat | Amex Delta Res | CSR | Citi AA Exec Business Cards: Ink+ | Amex BGR
Message 5 of 29
redpat
Senior Contributor

Re: credit card diversification


@Anonymouswrote:

also, what is considered the most optimum amount of cards to own in order to achieve the best score?


You really don't need more than 4.  The key to having a good credit score is on time payments and low utilization 1%-10%.  Utilization has no memory so if it's higher one month and lower the next month your score will bounce back.

Personal Cards: Amex Plat | Amex Delta Res | CSR | Citi AA Exec Business Cards: Ink+ | Amex BGR
Message 6 of 29
HeavenOhio
Senior Contributor

Re: credit card diversification

One thing that hasn’t been mentioned is gauging your approval odds. Chase likes to see a year of history, for instance, and some of their cards have minimum starting limits which you may or may not qualify for. What are your current limits, and how long have you had each card?
Message 7 of 29
Anonymous
Not applicable

Re: credit card diversification

I


@Anonymouswrote:

Im on the way to rebuilding my score with an auto lease that is a year old that has been paid on time.  I then went with a starter cap one card and a discover card.  My score is now around 670.  From the knowedgeable ones out there, where would one look next to add a card that has favorable terms and what type of score would I need to start adding the desirable cards available?  I am truly just learning the right way to build my score any help would be appreciated.



If i knew then what I know now, I would not have a card from discover. I would have saved one of my 5/24 slots for a card with better everything. I would say the same about my capitol one card also. My chase cards and my Amex Everyday are the only ones I use. 

Message 8 of 29
Anonymous
Not applicable

Re: credit card diversification

I assumed I had to go with cap one and dicover to attain the better cards with favorable terms.  I am only a few months in on my cap one and discover cards.  500 limt on cap one and 1000 on discover card.  I am trying to plan ahead on what action to take next and add better cards down the line.  so my plan of action would be to increase credit lines and keep paying on time with low utilization rates.  then my question is, how would i know when it is time to search for the better cards out there?

Message 9 of 29
Anonymous
Not applicable

Re: credit card diversification

This all great info that is truly appreciated cause this was information that I did not know.

Message 10 of 29
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