cancel
Showing results for 
Search instead for 
Did you mean: 

Ideal number of lines of revolving credit

tag
nmk94
Regular Contributor

Ideal number of lines of revolving credit

So, before I apply for any new CCs, I need to bring up my credit score by dealing with this issue.

 

That said, with an eye on the future and in preparation for doing so, what is the ideal number of lines of revolving credit one should have? I realize there may not be an "ideal" number, but is 1 too little? I currently only have 1 credit card account open. I'm thinking 3 or 4, but that's just a wild guess on my part.

 

Or is 1 enough, as long as the payment history and utilzation are good?

1/24 - EX 831 | EQ 830 | TU 824
12/22 - EX 794 | EQ 799 | TU 741
9/20 - EX 726 | EQ 710 | TU 720
8/20 - EX 686 | EQ 678 | TU 675
7/20 - EX 671 | EQ 657 | TU 659
04/20 - EX 649 | EQ 645 | TU 661
11/17 - EX 614 | EQ 626 | TU 612
Goal - EX 750 | EX 750 | TU 750
Message 1 of 12
11 REPLIES 11
HeavenOhio
Senior Contributor

Re: Ideal number of lines of revolving credit

To get scoring points for less than half of your cards reporting a positive balance, you need three cards. Some say five is better.

 

Don't rush to get there, though. Get the cards you want rather than signing on just for the sake of getting them. Depending on how long you've had your current card or cards, that can take time and patience.

Message 2 of 12
Anonymous
Not applicable

Re: Ideal number of lines of revolving credit

Does this include store cards or just bank credit cards?

Message 3 of 12
trusty
Frequent Contributor

Re: Ideal number of lines of revolving credit

Most mortgage loan products require at least 3 active credit lines, with over two years of history.

Message 4 of 12
SouthJamaica
Mega Contributor

Re: Ideal number of lines of revolving credit


@nmk94 wrote:

So, before I apply for any new CCs, I need to bring up my credit score by dealing with this issue.

 

That said, with an eye on the future and in preparation for doing so, what is the ideal number of lines of revolving credit one should have? I realize there may not be an "ideal" number, but is 1 too little? I currently only have 1 credit card account open. I'm thinking 3 or 4, but that's just a wild guess on my part.

 

Or is 1 enough, as long as the payment history and utilzation are good?


The general consensus is that for an optimal score it's best to have at least 3, paying all off in full each month, letting one report a small balance while the other two report a zero balance.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 5 of 12
SouthJamaica
Mega Contributor

Re: Ideal number of lines of revolving credit


@Anonymous wrote:

Does this include store cards or just bank credit cards?


For scoring, it's best not to have store cards.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 6 of 12
marty56
Super Contributor

Re: Ideal number of lines of revolving credit

IMHO 4 or 5 cards would do it (FICO and lifestyle)

A local CU cashback CC (main CC)

A gas card

Sams MC or Costco or other backup for your main one

A card for online (One that allows virutual account numbers like BofA or Citi) purchases/billing

Travel card (if you can run enough money through them to get air miles)

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 7 of 12
marty56
Super Contributor

Re: Ideal number of lines of revolving credit


@SouthJamaica wrote:

@Anonymous wrote:

Does this include store cards or just bank credit cards?


For scoring, it's best not to have store cards.


If you mean CFL, I agree but furniture accounts that are backed by say Synchrony can help you build a relationship with large banks.  Not sure of Home Depot/Lowes cards are scored differently then any other revolving credit lines. 

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 8 of 12
trusty
Frequent Contributor

Re: Ideal number of lines of revolving credit

It doesn't hurt to have an installment loan in that mix.

But, from what I understand... retail and personal loans are not ideal. Probably moreso for their low limits and limited history respectively, than anything else inherently bad.
Message 9 of 12
Revelate
Moderator Emeritus

Re: Ideal number of lines of revolving credit


@troylasvegas wrote:
It doesn't hurt to have an installment loan in that mix.

But, from what I understand... retail and personal loans are not ideal. Probably moreso for their low limits and limited history respectively, than anything else inherently bad.

Most personal loans are fine, sorting it out with the usual Alliant share secured loan is fine for scoring purposes.

 

Some though are flagged as Consumer Finance Accounts (CFA's) and those are a FICO penalty and should be avoided if we're just talking credit scoring.




        
Message 10 of 12
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.