Wondering What Other "Credit/Loan" I Need To Add

[jbh]

Hey, this question is asked in order to gauge the best mix of credit that I can have in order to boost my scores and establish a good record over time.

I figured this thread might also be useful for newcomers as well as for myself. I have 2 low limit credit cards (just to build a positive history/age) and a Crown Jeweler card ($2500 limit). I am debating the other types of additions to allow a good 'fico approved credit mix'

Should I get a small auto loan or personal loan in addition? Do you suggest maybe another card (when my scores go up) for a higher balance (such as a citi or amex within 6 months) or should I just hold off for now?

Thanks for your time.

[Anonymous]

You shouldn't apply for credit that you don't need...and adding new credit can actually hurt you...becuase you are lowering the average age of your accounts....but the mix is...revolving CCs...including store...CJ is good...an auto loan...or another installment loan...a mortgage...stuff like that...

[jbh]

Thanks. Since a mortgage isn't a goal for another 2+ years, I figure an Auto loan for a used car might make sense in terms of 'other credit'. Thing is, while I agree on not getting credit for the sake of it, I do want to have at least one Amex card so I can rack up miles/rewards as I am self employed and want to prove myself with them over time. I can't just have a jewelery card and 2 $300 cards, you know what I mean?

It's been a dream of mine and having a REAL credit card with a high limit might be worth a temporary lowering of age. I would use it for sky miles as I am self employed and want to have at least one that is for personal use for things like vacations/etc once or twice a year.

That said, I wouldn't ever add any other credit cards.

[Anonymous]

Yeah...I know what you mean...wouldn't we all want our wallets filled with Amexs....and Discovers...but those cards take time...and getting a new credit mix isn't going to make that happen....if you have bad things on your reports...you need to work on those and get your report cleaned...before thinking of those major CCs...if you have UTL...keep it at 1-9%...and STOP applying for new credit...those companies don't favor many inquiries...in time...it will happen...

[jbh]

Bingo. Just fyi, what I meant was I would do it in 6 months or until my 3 scores hit 680. I am on a strict plan to have 10% on my balances before I think about it. Also, I am lucky because I have less than 3 inquiries on the entire year and won't have another one unless I receive a loan.

It's just that I am willing to trading account age for long term credibility and I feel it's a good long term investment.

Thank you VERY much for your time. I really do appreciate it.