Thresholds for number of open accounts?

[SouthJamaica]

I was wondering if there are any FICO scoring thresholds for number of open accounts.  Specifically, is there a number at which one starts to lose points for having too many open accounts?

I know that it's taken into account in lending decisions, was wondering if it goes into scoring.

[iv]

For a recent related discussion (it's not 100% clear if the effect is total accounts on report, or total open accounts), see here:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AU-and-quot-too-many-bank-national-revol...

[SouthJamaica]

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@iv wrote:

For a recent related discussion (it's not 100% clear if the effect is total accounts on report, or total open accounts), see here:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AU-and-quot-too-many-bank-national-revol...

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So I guess the upshot of that conversation is that for TU FICO 4, there is such a thing as having too many open revolving accounts, and that this exists nowhere else in the FICO universe.

I just checked and yes, for TU 4 I do have the negative reason code "Number of credit accounts". And I do not have the code in EX FICO 2 or EQ FICO 5.  I have 29 open accounts, so the threshold is somewhere south of there.  I doubt I'll ever find out in my own profile where that threshold is.

And since this problem exists only in TU FICO 4, I guess it's not an issue except for people applying for a mortgage.  Even then, it would probably rarely be beneficial to close an account to satisfy this goblin.

[Anonymous]

I think it was seen in one other place but the only place it really hurts you is TU4. Was my number one there.

I was actually able to draw some distinctions between new account and no new account Scorecards on the Mortgage Scores for Clean/Thick/Mature profiles like ours. Check out my new mortgage section. Actually I should probably link that thread.

[Curious_George2]

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@SouthJamaica wrote:

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@iv wrote:

For a recent related discussion (it's not 100% clear if the effect is total accounts on report, or total open accounts), see here:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AU-and-quot-too-many-bank-national-revol...

---

So I guess the upshot of that conversation is that for TU FICO 4, there is such a thing as having too many open revolving accounts, and that this exists nowhere else in the FICO universe.

I just checked and yes, for TU 4 I do have the negative reason code "Number of credit accounts". And I do not have the code in EX FICO 2 or EQ FICO 5.  I have 29 open accounts, so the threshold is somewhere south of there.  I doubt I'll ever find out in my own profile where that threshold is.

And since this problem exists only in TU FICO 4, I guess it's not an issue except for people applying for a mortgage.  Even then, it would probably rarely be beneficial to close an account to satisfy this goblin.

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I think you and @iv are saying slightly different things. The reason statement for "too few or too many credit accounts" doesn't say that only open accounts count, or that only revolvers count. The expanded explanation on MF refers to "the total number of accounts being reported" and "number of credit accounts on their credit bureau report." I guess it's something of an open question whether closed accounts count (I think they do, based on the language used), but I think everyone agrees that installment accounts count against the limit -- whatever it is.

FWIW, I see this reason sometimes, but only on TU4 and TU BC4. I have 26 total accounts on TU, 13 of which are open.

[Anonymous]

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@Curious_George2 wrote:

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@SouthJamaica wrote:

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@iv wrote:

For a recent related discussion (it's not 100% clear if the effect is total accounts on report, or total open accounts), see here:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AU-and-quot-too-many-bank-national-revol...

---

So I guess the upshot of that conversation is that for TU FICO 4, there is such a thing as having too many open revolving accounts, and that this exists nowhere else in the FICO universe.

I just checked and yes, for TU 4 I do have the negative reason code "Number of credit accounts". And I do not have the code in EX FICO 2 or EQ FICO 5.  I have 29 open accounts, so the threshold is somewhere south of there.  I doubt I'll ever find out in my own profile where that threshold is.

And since this problem exists only in TU FICO 4, I guess it's not an issue except for people applying for a mortgage.  Even then, it would probably rarely be beneficial to close an account to satisfy this goblin.

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I think you and @iv are saying slightly different things. The reason statement for "too few or too many credit accounts" doesn't say that only open accounts count, or that only revolvers count. The expanded explanation on MF refers to "the total number of accounts being reported" and "number of credit accounts on their credit bureau report." I guess it's something of an open question whether closed accounts count (I think they do, based on the language used), but I think everyone agrees that installment accounts count against the limit -- whatever it is.

FWIW, I see this reason sometimes, but only on TU4 and TU BC4. I have 26 total accounts on TU, 13 of which are open.

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@Curious_George2 +1 absolutely correct it is not limited to cards or revolvers but includes all credit accounts. There is a separate code I think for too many revolvers or cards, maybe both, but I would have to look. And definitely an open question on whether it's open or closed.