How much is too much?

[fused]

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ilovepizza wrote:
5 cards is good. Besides scores, I like to leave 1 card at 0% utl each month for lenders to see. I change the cards around so all cards get activity. I feel if lenders see a card not being used they are more likely to feel I am in a better situation. Just an opinion.

Another opinion for obtaining bigger and better credit from prime banks.
Cards are an easy way to build credit history for those with recent negs. If secured cards are all you can get, then they will do. Once you can get unsecured cards, I would start to merge away from secured. Both secured and unsecured help your score if handled responsibly under this current FICO release.

Message Edited by ilovepizza on 06-26-2007 12:02 PM

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Yes, both sec and unsec CCs are currently treated equally.  However, this might change when FICO implements their new scoring model.  Tuscani is currently investigating this.

[Anonymous]

NEW scoring model? hmm. Yes I think some of the FAKO guys use some model that can tell the difference between secured/unsecured or just low/high credit limits.

According to true credit, there was a time when my low credit limits were hurting my score--I had a $500 limit from Orcahrd bank and a $500 limit from Capital One. It went something like this "NOT enough revolving debt experience --your low credit limits are hurting your score--because your limits are low, lenders may view you are not showing a history of being able to manage higher limits--consider opening another account with a higher limit"

[fused]

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rifleman wrote:
NEW scoring model? hmm. Yes I think some of the FAKO guys use some model that can tell the difference between secured/unsecured or just low/high credit limits.

According to true credit, there was a time when my low credit limits were hurting my score--I had a $500 limit from Orcahrd bank and a $500 limit from Capital One. It went something like this "NOT enough revolving debt experience --your low credit limits are hurting your score--because your limits are low, lenders may view you are not showing a history of being able to manage higher limits--consider opening another account with a higher limit"

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FAKOs, their models are all different!  FICO's new scoring model:  AUs will no longer get the piggyback points.  How many will suffer a big drop in scores, maybe millions. Ouch!  Also, if the subprime CCs are going to factor the same way consumer finance loans are, WATCH the H*LL OUT?  This is going to have a damaging impact to millions of consumers who cannot qualify for prime CCs and loans.  If FICO makes these changes to subprime CCs, say bye bye to the Median FICO score of 723!

[Anonymous]

yeah I wonder what the median fico will be then--623? If that's the case I'm only slightly above average. I wonder what impact that drop in fico will have on the economy

I long to be in the 700+ club some day...

[fused]

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rifleman wrote:
yeah I wonder what the median fico will be then--623? If that's the case I'm only slightly above average. I wonder what impact that drop in fico will have on the economy

I long to be in the 700+ club some day...

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Good question!  Will lenders and cccs go out of business, no way!  Maybe they will have to soften their underwriting but that can be very dangerous.  Just look at what is happening with all of the subprime mortgages that foreclosing.

[Anonymous]

noticed on another forum that secured cards are scored just like unsecured cards the only thing that effects the score at this point is the CL

[Anonymous]

You need to calulate your avg age as well.

[Anonymous]

Opps.Double post sorry-

Message Edited by Timothy on 06-26-2007 06:55 PM