Jump to content

How many credit cards is enough?


Recommended Posts

Since I have done tons of repair on my credit, bought a couple cars, bought another house etc... my scores have climbed quite a bit. I have gotten approved for a First Premier, Home Depot, and a Patelco. Already had an Orchard, and Chevron. I am sure my score is going to suck for a little while but when I got the Orchard it bumped my score from a 580 to a 620!

Where should I stop? I don't keep a balance on any of the existing cards...

Link to comment
Share on other sites

Guest jeeptravel

In theory, 1 is enough. When your credit gets good enough to where oe with a 0% interest. or a very low will consolidate all, go with that one. That is my goal in a year or so. You should have no more than a 25% balance on all cards combined to maximize your score. Wouldn't that be easy to figure if you just had one?

jt

Link to comment
Share on other sites

Guest jeeptravel

In the words of the late great Johnny Carson, "I did not know that." Probably keep a gas card and a reg. Visa then.

gracias doc don

jt

Link to comment
Share on other sites

Here's the "pie chart" directly from Fair Isaac to give us some idea how FICO works....

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

Payment history: no lates, or severity of lates and frequency/time since last late.

Amounts owed: keeping balances below 34% (estimate) of credit limit.

Length of credit history: FICO considers 30 years "prime" history. This is the reason to consider which accounts you're going to close outright.

New credit: FICO likes to see an evolution of different types of credit. Those with 'bad' credit may start with a secured card and work their way from there...

Types of credit used: Best guess is 2 revolving accounts, a car loan, a mortgage... if you have only 1 installment account, even though it's paid perfectly, you may still find it hard to acquire an 'open' line of credit (ie: revolving credit card).

FICO is a strange beast at best.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.