How many Lines of Credit are needed for the Best FICO Score?

[SandyL100]

Hello All,

What a great source of information! 

Ok.... Am rebuiding my credit....  I have 1 baddie on credit report that will fall off in less than 3 years....

Open Lines of Credit:

    3 credit cards -  2 reporting 0 balance, 1 reporting <9% ---- goal is <5% (HSBC, ELAN, USAA)

    1 mortgage - just refied....

Closed Lines:

   3 revolving

   3 mortgages - have refied a few times.  Done with that..

   1 installment loan

So I currently have 11 lines on credit report.  As time passes, the closed accounts will fall off the credit report, 10 years from last activity date... I think.

***How many lines of credit are really needed?

I do not plan to buy a car on credit... I plan to pay cash, so my only open lines will be a mortgage and eventually 5 credit cards...

I have to wait until baddie falls off credit report to get my old AMEX card back... This will give me an oldest line of 23 years. 

Also, am waiting for baddie to fall off to get a Major Bank card.... am planning to get a CHASE card.... 

***Are there Major Banks that will approve a CC with an 8 year old BK?  I have not been able to find one through reading... and have not applied...

***Is 6 lines of credit enough to obtain a FICO score over 800 with:

                  .1) 100% on-time, 2) 1 mortgage and 5 CCs, 3 ) Oldest account - 26 years, Average Age - 10 years 4) zero inquires 5) zero public records? 

***If I need more than 5 credit cards?  Is a gas card or store card a good addition?  

Thoughts?

Thank you...

[chasmith]

You're doing fine.  The three cards you list should be enough - if they are Mastercard/VISA.  How large are the credit lines?

I don't know ELAN, and can understand wanting to "upgrade" from HSBC.  But with your scores and an 8 yr old BK I would think you can get good solid credit on a Mastercard or VISA from a credit union.

The only thing to consider is that adding an installment loan (for "credit mix") might help a bit with your score.  Put some money into a Credit Union savings account and take a secured loan and pay it off over 12 or 24 months.

Is the "baddie" you mention falling off in three years your 8 yr old BK?

[MarineVietVet]

I agree that you are on the right track but i wouldn't suggest going into debt just for a few FICO points. Your #1 goal should always be to get out of debt not to add debt.

Credit mix is only 10% of your total score anyway so your revolving credit and your mortgage is all you need right now because closed accounts still count towards credit mix so your closed installment loan is still helping you.

Keep doing what you're doing and your scores will continue to improve.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[SandyL100]

Chasmith,

  Thanks for the reply....

   ELAN is a VISA               CL - 12,300

   HSBC is a Mastercard  CL -   4,100

   USAA is a Mastercard   CL - 10,000

   secured loan from a CU... that is at least for 12 months.. ...will do

   one more CC from CU... great..

   And yes, the baddie is a BK....

 Thanks for your help...

[SandyL100]

Marinevietvet,

   Ok...I see... I may hold off on the secured loan...   

   It is sometimes challenging to allow TIME to heal...

   This really is a "recovery" for me....so it is also psychological ...   

    Patience...

Thanks

[chasmith]

As usual, Marinevietvet is clear and correct...

You have three great CC lines.  I don't think you need any more cards or higher lines to keep your score growing with time.

Having a mortgage seems to help more than having an installment loan (you already have that), and I agree, if I wasn't clear, the increase from adding a secured installment loan would be mimimal, it was the only thing I thought might help raise the score immediately.

Your scores now should be good enough to qualify for 0% financing on a car.  When you're ready to pay cash for the car, you might do that to add an installment line, just don't spend the cash on something else.

Since you don't NEED any credit now, the best thing to do is watch your scores grow with time.  I know, I find that hard to do myself.  I hope I'm in as good shape as you in seven years when my BK will be 8 yrs old...

[MarineVietVet]

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@chasmith wrote:

As usual, Marinevietvet is clear and correct...

You have three great CC lines.  I don't think you need any more cards or higher lines to keep your score growing with time.

Having a mortgage seems to help more than having an installment loan (you already have that), and I agree, if I wasn't clear, the increase from adding a secured installment loan would be mimimal, it was the only thing I thought might help raise the score immediately.

Your scores now should be good enough to qualify for 0% financing on a car.  When you're ready to pay cash for the car, you might do that to add an installment line, just don't spend the cash on something else.

Since you don't NEED any credit now, the best thing to do is watch your scores grow with time.  I know, I find that hard to do myself.  I hope I'm in as good shape as you in seven years when my BK will be 8 yrs old...

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Would you please tell that to my sons?? 

[chasmith]

When I was around what I guess your sons' age may be, I wasn't very good at accepting my Dad (CAPT USNR (Ret)) as correct so I'm not sure I can help...

[SandyL100]

chasmith,

Best of luck rebuiling... you have come a long way since last year... yeah!

I really appreciate the encouragement....

[SandyL100]

Marinevietvet,

Hey... My dad was in the Airforce...  and he was in Vietnam...   

When your sons get older they will appreciate you more...