A very simple question

[Anonymous]

Is your credit score inherently better if you have more good accounts? For example, is it better to have 3 accounts at 5% UTIL, or is it better to have 9 accounts at 5% UTIL, or is it completely irrelevant? If it IS better, is there a point at which the benefits of many accounts break down? (You know, is it STILL better to have 100 open accounts than 25, etc) That's it. Thanks, Christy

[Anonymous]

I don't think people have found the magic number. Not enough is bad but so are to many. I would guess around 5 or 6 revolving credit accts, an instalment and a mortgage.

[MidnightVoice]

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GreenTara wrote:
Is your credit score inherently better if you have more good accounts? For example, is it better to have 3 accounts at 5% UTIL, or is it better to have 9 accounts at 5% UTIL, or is it completely irrelevant? If it IS better, is there a point at which the benefits of many accounts break down? (You know, is it STILL better to have 100 open accounts than 25, etc) That's it. Thanks, Christy

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I wish that were a simple question 

Utility is utility, your total credit line is what it is.  FICO seems to like to see a spread of revolving debt, but it also seems that it can get concerned at too many accounts.  Mortgage brokers have also been known to look askance at too many accounts.

[Anonymous]

I believe the way they calculate the credit score one of them is total credit lines (add all the credit cards together) VS how much you owe the balance on cards, so if you have more credit cards with high limit will be better than less cards with low limit...of course the other factors will be consider too.      

I have total of 27 acct. but some of them I have not use for years with zero balance.

Want to know a secret...???

If you have multiple credit cards issued by the same bank, like Bank of American, Chase Bank...consolidate the credit lines into one and only borrow the money or owe the money from that credit card alone, instead of owe the money on several credit cards.

And the bank(credit card company) only report to credit bureau once per month after the statement closing date, by doing this, I made balance transfer (7 days after statement closing date which the bank might already report the account status to 3 credit bureau) to pay off some credit cards then consolidate 3-4 credit lines together to $57,500.00 and leave the credit cards I don't use the credit lines to be just $1,000.00 and let only one card carry high balance...because credit score system only look how many cards that you owe high balance, it doesn't care how much money you owe, so in this case I can owe more money to the bank but still get high credit score from 3 credit bureau (Exp. Eqx. TU)...believe it or not, I made balance transfer from 2 banks total of $121,400.00 and my credit score still go up from 757 to 777.

What a shame!!!        

[Anonymous]

My opinion, more the better because your average age will be stronger, more history, but for UTL I think no more than 4 accounts with balances has worked best for many. While you can use all your accounts, they would be best reported pif $0 bal each month. But I agree, UTL is UTL, no difference 1 or 20 as long as over all UTL remains the same. Score can be lower do to other factors such as too many accounts with balances if your profile triggers that point loss.

Message Edited by ilovepizza on 08-29-2007 09:53 AM

[MidnightVoice]

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ilovepizza wrote:
My opinion, more the better

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But your answer to every problem is to apply for more CCs. 

[Anonymous]

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@MidnightVoice wrote:

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@Anonymous wrote:
My opinion, more the better

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But your answer to every problem is to apply for more CCs.

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I was just comparing a profile that already had many, vs few. But cc's are an easy way to gain keep average age up "after" they get older. Sometimes it is easier to get more CL for UTL from many than it is from the few. More history faster. On the bad side, they will also take down your average age when getting them for a couple of years. So it is really a do now, wait a few years to be rewarded with credit cards. But if you can wait, there are advantages.