Great information, I truly appreciate it. I am a little green on the lingo. What does 5/24 refer to? Also, what does "HP" mean in this statement "When the time is right app for it dont be afraid of the hp." Thanks for taking the time to educate.
5/24 - Chase has this rule with the majority of their cards. They will not approve you if you have more than 5 inquiries within 24 months on the CB (credit bureau) they pull. That is why if you want to get in them, you need to be careful. Other lenders have other rules. That is why you want to plan out for your needs and what fits best.
Smaller correction here. That's 5 new accounts within a 24 month period and this includes any AUs added as well.
sorry for the ingorance, so 5 new accounts in a 24 month period not hard inquiries....please translate what an AU refers to
Authorized user. It's when someone adds a person to their credit card in their name so they can make purchases but they are not responsible for the charges the primary cardholder is.
By listing those cards at the bottom of your post. 16 of them, does this indicate those are your current open cards and the scores you posted are where you stand. Now, I am not sure if this is acceptable to ask. could it be deemed a negative to have so many cards? It doesn't seem to be the case with your scores. Any explanation would be appreciated on my quest to a 750 score. If not proper etiquette for this forum , my apologies.
Hi @Anonymous, and welcome to myFICO!
Here's a link to a thread that lists common abbreviations used on myFICO: http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/td-p/88458
We see a lot of people here with many, many cards. We don't normally see situations where lenders think there are too many in total. But we frequently see situations where lenders feel that there were too many that were opened recently.
As far as closing cards goes, FICO likes it when people have three open cards, and some feel that five is even better. If you're under those numbers, close cards if they have an annual fee that's doing you no good and that you can't get rid of. Or you can close if dealing with that particular bank or card is a pain in the butt.
Otherwise, try to hang onto your current cards for the time being. As mentioned, account age stats are unlikely to be affected until down the road, and hopefully by then, you have replacement cards in hand to pick up the slack. Rather than age, the thing to consider is that the number/percentage of cards reporting positive balances is part of scoring. FICO likes to see over half of your cards reporting balances of zero. That's impossible to achieve with one or two cards.
As far as diversification goes, I agree that it's a good idea. But it's not so important that one has to make it an immediate goal. It can happen over time.
Another great reply with sage advice. I thank you for the information. This really helps because I have heard varying views on what is appropriate or ideal to build credit. As a result, I will build with the 2 cards I have then hopefully move on to better cards with the inclination to keep most of my cards with a zero balance and a 10% utilization rate. Thanks for the time to respond. This is information I never knew about and I work in finance. One would think someone in finance should know these tidbits, but credit is a totally different animal.