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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?
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.
Does this include store cards or just bank credit cards?
Most mortgage loan products require at least 3 active credit lines, with over two years of history.
@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.
@Anonymous wrote:Does this include store cards or just bank credit cards?
For scoring, it's best not to have store cards.
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)
@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.
@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.