Loose points for having more then 4 CC's?

[Anonymous]

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@Anonymous wrote:
I am a credit card junkie so I definitely have more than 4 cards. I'm not so sure about the limit of 4 cards for best score. I thought it was a limit of 4 cards that carry balances at one time; I am just testing this theory now. I exceeded 4 cards with balances and my score dropped -18 points. I can't really prove the score drop was directly from exceeding 4 cards with balances until my CR updates back to 4 cards with balances. I am waiting to see if I regain the +18 points.
Link to subject about -18 point loss

But either way I have seen credit reports in the 800s with well more than 4 credit cards. Whether these credit reports had balances on all or 4 or less cards I do not know.

And there is a mystery here too. Who knows, it might be a formula of age and other trade lines that determine how many credit cards ones limit is if there is a limit? These are things we most likely won't know. So what works for me, might not work for all.

Message Edited by ilovepizza on 06-19-2007 10:39 AM

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I just spoke to a FICO employee about this. According to him having lots of credit cards (over 4) "does not necessarily" drop your score. He kept emphasizing that on time payments and low utilization on all accounts is key to a high score. He did not give cut off numbers for maximum accounts until your score drops--because according to him you cannot have too many accounts. What you can have is too many accounts with high balances--that is bad.

So I guess you don't have to worry if you have many credit cards--just keep balances below 10%, pay on time and your score can increase as much as 10-20 points per month!

[Anonymous]

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@Anonymous wrote:
yes--when can I get my 50 points?

Do store cards fall in the same catagory as credit cards? (meaning revolving credit)

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Store cards (Retail Cards) are revolving. I believe (not completely sure) that they are weighted lighter in points than Credit Cards in "certain areas". Whether this is "good or bad" I don't know either. I know what I just said doesn't say anything other than I think they are different from credit cards but are still revolving. But I wanted to point out the possible difference and note that I wasn't sure. So if anyone else can comment it will help me learn too. Thanks.

[Anonymous]

Yes, got it, thank you, I took a stupid pill this morning. 

But don't obsess about "points."  Just pay on time, keep util low, don't go crazy with applying for credit, etc.

[Anonymous]

Yeah I hear ya--that's my plan. Though I am constantly checking these forums and have been thinking about credit scoring nonstop for days (I had a nightmare last night--you know what it was? It was that I had a late payment last month, LOL.)

Anyway, I applied for some new credit, got some good deals, and now my plan is to use that new credit resposibly, keep balances below 10% every month, pay it off every month and periodically request increases.

Another thing the Fico guy said, is that your score automatically goes up the most if you use below 10%, and it will start to stay the same if you use up to 40%...now I have heard that number being more like 30% from others. Anyway, according to him if you go OVER 40%, then your score goes down

[Anonymous]

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masdeocho wrote:

Yes, got it, thank you, I took a stupid pill this morning. 

But don't obsess about "points."  Just pay on time, keep util low, don't go crazy with applying for credit, etc.

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I agree.   I would be more concerned on what future potential lenders would consider too many cards vs.  what FICO thought.   They are the ones you want to impress.

[Anonymous]

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Boswd wrote:

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masdeocho wrote:

Yes, got it, thank you, I took a stupid pill this morning. 

But don't obsess about "points."  Just pay on time, keep util low, don't go crazy with applying for credit, etc.

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I agree.   I would be more concerned on what future potential lenders would consider too many cards vs.  what FICO thought.   They are the ones you want to impress.

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You agree -- that I took a stupid pill?

Actually, you'd want to know how they react to the amount of your available credit rather than # of cards.

[Anonymous]

yeah that makes more sense to me--someone with 6 cards using only 10% of their credit would be more attractive to me then someone with 3 cards using 80% of their limit.

But that's just me

[Anonymous]

LOL  LOL  

Yeah, there used to be a couple of posters who worked in the lending industry that used to post here.  I wish they would chime in.    I know there is no magical cutoff number for the amount of cards and available credit but It would be nice to know in what ball park they consider too much.    

[Anonymous]

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rifleman wrote:
yeah that makes more sense to me--someone with 6 cards using only 10% of their credit would be more attractive to me then someone with 3 cards using 80% of their limit.

But that's just me

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You and FICO both.

[Anonymous]

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Boswd wrote:

LOL  LOL  

Yeah, there used to be a couple of posters who worked in the lending industry that used to post here.  I wish they would chime in.    I know there is no magical cutoff number for the amount of cards and available credit but It would be nice to know in what ball park they consider too much.    

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This is one of those "how-long-is-a-piece-of-string" questions.  The lender looks at other variables that FICO doesn't -- most notably, income and length of time at current job.