Number of Revolving Accounts

[Henchman21]

Just starting the rebuilding process. Is 3 accounts the magic number? I know you can build credit with 1, but is there a difference, do they count how many months were paid on time vs late, anything like that?

[dodfire]

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@Henchman21 wrote:
Just starting the rebuilding process. Is 3 accounts the magic number? I know you can build credit with 1, but is there a difference, do they count how many months were paid on time vs late, anything like that?

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Congrats on starting the rebuilding process!!!

I do not think there is a "magic" number, are you talking about 3 revolving accounts?

The "magic" is UTL (utilization) which you want to keep in a target range of 1%-9%. So, if you have 1 credit card and your credit limit is $1,000 the most you want to carry a balance is $90

If you have two cards at $1000 then you have a total of $2000 available credit and you could carry a balance of $180 (you get the picture).

For maximum scoring you need a mix of credit. ( Revolving, credit cards) (Installment, auto or personal loan) ( Mortgage, home loan).

Late vs Pay ( there is no calculation per say) such as: 10 payments on time will cancel out 1 late payment. Sorry.

Late is late and it hurts your score....the more late it is and how many....120 is worse than 90, 90 worse than 60 and 60 worse than 30. As time passes late pays do not hurt your score as much, but they are still there.

Hope this helps!

[Anonymous]

Read this, it might help you. 

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

[Henchman21]

Thanks, I read everything. I don't plan on carrying a balance because I would rather see credit line increases than a slightly higher fico score.

I haven't had any recent credit history since 2009, so I was wondering if MORE revolving accounts(paid in full and on time, of course) would help build my scores quicker? That's what I intended to say. I don't think it would, I was just curious.

[dodfire]

IMO if you have 2-3 starter cards and you show responsible usage then other lenders are more inclined to give you credit. So, I say go for it!! 

[Anonymous]

From what I have read a minimum of three revolving accounts is good.  I read everything about FICO and it is just something that was suggested.

I know a high score can be acheived with no CC.

[Henchman21]

That's kind of what I was thinking since I only have $600 total credit. BUT the problem is getting approved! I appd a few times and was denied Amazon, American Eagle(stupid move since they're both GE), and Cap 1 Journey(again, if I'd known to wait...). Know anyone that might take me? I've tried fishing for pre approvals from VS, nothing yet. Maybe in a few months I'll see one? I read they are sensitive to inq, though...

[Henchman21]

Just need one more! I'd prefer it's something I'd actually use, as I would like to keep my cards and let them grow. Really wanted that AE

[dodfire]

Your best bet would probably be a secured card. 

[Anonymous]

Just be careful applying too much.  Those inquiries will hurt.

Go to whogavemecredit.com and look around and see who got what.  It will tell you what score, denied or not, what was on their reports, etc.  It's a good tool.