@Anonymous wrote:
Hi all... I've been lurking here for quite some time trying to figure out how to improve my credit score. My identity was stolen and after I froze my credit file and let my cc's go, the police suggested I use cash or checks for a while. That turned out to be great advice because I had a target on my back. It was inconvenient, but it saved me from total destruction. After the dust settled, I thought it was time to get back into the cc world. With a limited cc history and a score in the 500's, I've now aquired 6 cc's with credit scores ranging from 756 to 787. 2 Amex, 2 Cap 1, Discover & Chase Amazon Visa.
My question: It appears that having only 6 cc's is hurting my credit score, at least according to one popular site. I thought the general rule of thumb was, fewer cards used routinely and responsibly was the path to 800. My credit score is on a lethargic climb right now. Will more cards (albeit mostly not often used) increase my score or hurt it? My AoYA (age of most recent cc) is 6 months.
Thanks for any guidance.
Was this site CK by chance? or one like it? Fico will give you real numbers. CK's scores aren't realistic. Their algorithms are all messed up. Example: $1,400 posted to a card that has a $34k limit (only a 4.3% UTI jump from 0% UTI previous months) - My CK's TU score went down by 4 and EQ went up by 13 - What does your math say? They need just need you to apply for more CC's using their approval process so that they can make $$. Though CK is great tool to look at your credit at a glance. It should not be used as the final answer.
As far as the number of your cards needed for great scores. It's been said that you only need 3 with some other factors like recurring payments like auto loans. If your income and spending habits can support more than 3 cards, then that is up to you.
I know someone that has had 2 paid off auto loans (paid off early - Infiniti and Porsche) and has had only 1 CC in good standing for over 11 years. I ran her credit for her and she was over 820.
What I've read is that 1 card is good, 2 is better, and 3 is best... anything beyond 3 cards won't do a lot. Use all the cards regularly, don't carry balances, and practice AZEO (all zero except one) to optimize your scores. Obviously, don't make any late payments.
Other than that, the only thing you can do to grow your scores besides just waiting, is to expand your credit mix. An installment loan and a mortgage would be a good addition to your revolving cards, and give you a good mix and higher score - but obviously, it isn't always a good idea to take out new loans just for the sake of boosting your scores. A self-loan may be a good option, though.
Total Loan Balance: $43k / $65k
Total SL: $78k