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Do I really need FIVE open accounts

phillip1
Contributor

Do I really need FIVE open accounts

Hello,

 

My Experian reports keeps suggesting that I have FIVE open accounts.

 

At the moment I have four -- I have a Shared Secure Loan from Navy Federal

 

Then I have three secured credit cards -- Cap One, Discover, First Premier.

 

Will getting a fifth open account -- it would simply be another secured credit card -- actually help.

 

Obviously I want to raise my FICO score.

 

Thanks everyone for your comments.

 

Phillip

Message 1 of 10
9 REPLIES 9
ScooterMcDoodlebutt
Established Contributor

Re: Do I really need FIVE open accounts

You don’t need five cards to begin optimizing your score- three plus an installment loan is what is considered optimal. Are you seeing this on the Experian app or website? Keep in mind that they get paid, just like Credit Karma and all the others, for referrals to cards.







Message 2 of 10
phillip1
Contributor

Re: Do I really need FIVE open accounts

yes -- i saw that "five is best" claim on the experian -- free credit -- website.

Message 3 of 10
Nova5041
Frequent Contributor

Re: Do I really need FIVE open accounts

Nope, you're doing just fine with the accounts you have.

BK 7 Discharged: 5/30/2018
Fico Scores after Discharge: Experian-552 TransUnion- 490 Equifax- 571
Message 4 of 10
spiritcraft1
Valued Contributor

Re: Do I really need FIVE open accounts


@phillip1 wrote:

Hello,

 

My Experian reports keeps suggesting that I have FIVE open accounts.

 

At the moment I have four -- I have a Shared Secure Loan from Navy Federal

 

Then I have three secured credit cards -- Cap One, Discover, First Premier.

 

Will getting a fifth open account -- it would simply be another secured credit card -- actually help.

 

Obviously I want to raise my FICO score.

 

Thanks everyone for your comments.

 

Phillip


I would however consider adding an NFCU nRewards Secured Card...  The minimum is now only $200 and that will grow into a beast.  I would get that ASAP to build Navy history.


| |

Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = High 300's - Low 400's
8-1-18 -
12-24-18 -
Current F08 -
Current 2,4,5 -
Current F09 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, Citi Tractor Supply Rev .8k, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG || PG Accounts: AMEX Biz Gold NPSL | AMEX Biz Plat NPSL | AMEX Blue Cash and Plus Cards
Message 5 of 10
WarCulture
Frequent Contributor

Re: Do I really need FIVE open accounts

The standard revolving accounts needed for that section of your credit file is 3. It doesn't hurt to have more, but it doesn't help either unless it will lower your utilization. Albeit approvals are fun

 

IMO, I wouldn't get another secured card, when you'll surely be eligible for a sub-prime card soon, the cap one platinum is a good card in this case. Again, 3 cards is the optimal amount needed for that scoring section.

 

However, do what you feel is best for you, best of luck!

FICOs: EQ - 730 / TU - 735 / EX - 736
WALLET: CL 70K / UT 1%

"An investment in knowledge pays the best interest." - BF
Message 6 of 10
phillip1
Contributor

Re: Do I really need FIVE open accounts

Hi Spiritcraft1

 

thank you so much for your comments.

 

i am really (REALLY) a newbie on this. so could you explain (in a very elementary way) to me how the NFCU nRewards Secured Card will help me.

 

i just want to raise my FICO score.

 

thanks

Message 7 of 10
ScoreJunkie
Frequent Contributor

Re: Do I really need FIVE open accounts

I have 1 card and one installment loan and I am an authorized user on one of hubbys cards. My scores are all above 700 (see siggy).

Great scores are all about cleaning up the negitive stuff, paying current stuff on time and giving your accounts time to age. Those 3 things can be done with one card or 10 cards. Yes, 3 cards and an installment loan help with credit mix, but good scores mostly come from clean scorecards. (No or few negitive items)



Message 8 of 10
phillip1
Contributor

Re: Do I really need FIVE open accounts

Thanks ScoreJunkie,

 

I have one more collection notice that goes off next year -- will trying to get early elimination.

 

I have two FICO 8 scores in the low 700's now.

 

 

 

Message 9 of 10
spiritcraft1
Valued Contributor

Re: Do I really need FIVE open accounts

Since you are a member of NFCU, it makes perfect sense to have their card.  They look at prior history with them.  The card will unsecure at some point and at that time, they are usually ready to give you a second card as well.  I had mine graduate last month and then they gave me a $8k unsecured card.  My scores are still below 600. 

 

There are many here that started with a secured (or low limit unsecured card) with Navy and now have big credit lines with one or more cards.  They look at you history with them as much as anything.  Most have no option to get into NFCU and you are obviously in.  Whether it boosts your score or not short term, building NFCU history is HUGE. 


| |

Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = High 300's - Low 400's
8-1-18 -
12-24-18 -
Current F08 -
Current 2,4,5 -
Current F09 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, Citi Tractor Supply Rev .8k, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG || PG Accounts: AMEX Biz Gold NPSL | AMEX Biz Plat NPSL | AMEX Blue Cash and Plus Cards
Message 10 of 10
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