Currently, I have 4 open credit cards (one is an AMEX charge card). However, my credit reports show 6 open accounts. I know that this is because I just closed two accounts, and it hasn't had a chance to be reflected in the reports. If I wanted to apply for another credit card, would have 6 open accounts be viewed as a negative? I am only going to have 4 open, but should I wait or can I apply now?
RE: How many accounts before i If you are talking Negative to your next bank card from a Card Issuer. NO it will not be viewed negatively unless your balances are near your limits. Currently have way more than 6 and haven't seen a negative impact yet.
RE: How many accounts before i It really doesn't matter. As long as your score is 680 or better you could have 50 open accounts and get approved for a new card. You score might improve if you closed 10 of them, but you would still get approved. Yes, they would 'negatively' affect your credit score, but as long as they are paid as agreed, they aren't 'derogatory', and that will sink your credit score very quickly.
RE: How many accounts before i Not necessarily true, as having many accounts, your score could be over 680, but the reason for denial would be "insufficient income for additional unsecured credit". All depends who the Card Issuer is.
RE: How many accounts before i I have been researching the FICO score for some time now, and have found that the more open accounts one has on their credit report, the more Fico considers you a risk. I have also found that if you keep your balances at around 40% of the total limt, your score will increase.
I think it depends on your credit goal. If you have perfect credit, there appears to be some evidence that 5 tradelines are to your advantage. My credit was trashed 2 years ago and I am at 7 tradelines and moving to 10. In 2 years, I will reduce to 5 or 6. The accounts I close will be listed as "Closed by consumer. paid. Never late. I believe these closed accounts will improve my total FICO score.
