How many credit cards are too many?

• 
  I don't think the mix does anything. As for the store cards - they are usually with a low LOC and that hurts your individual utilization - $300 Macy's card with $150 balance gives you 50% util, which definitely affects your score, even if your overal util is better.
  
  IMO, if you have low utilization (10% - 20%) and no derogs, it doesn't matter how many cards you have. Back in 2001 I had 10 CCs, 2 LOC, 35% util, no derogs and stable 740-750 score.
  
  
  P.S. What is the Pentagon card?

 

In addition to the above, Transuion also states that the average consumer carries a balance on approximately 4 credit accounts at any given time (revolving, installment, and deferred). 5 or more accounts with a balance constitutes a negative!

 

....

According to a recent rejection message I received from Household Bank, 16 revolving accounts are too many.

 

• RichGuy, as I mentioned in another post - I have 12 open accounts, 75% utilization, yet I got two new cards last two weeks, including the AMEX Blue Cash. The key, IMO - I have never been late.

 

Report says I have 28 open. Actually don't know if that's accurate or not. I only use 19 often enough to bother including them in my Quicken (not hidden).

I'm around 750. Seldom if ever rejected. New home loan is going "no doc". YMMV

 

ive got a bucket full of cards and i keep on gettin em, so many places are just inq/score/balance driven, greedy folks.

So they give and give and give.

just gotta pinpoint

 

Re: Re: How many credit cards are too many?

• Hmm ... I need one of those for my CC collection ...

 

Re: Re: How many credit cards are too many?

I have 18, obviously that is not too many as Cap 1 just gave me a 2500 unsolicited increase.

www.creditsense.com

 

I HAVE SAID THIS BEFORE---YOUR GOING TO BELIEVE A CRA???

I have the number of cards I have FOR MY BENEFIT...NOT BECAUSE OF WHAT TRANS UNION SAYS I SHOULD HAVE!!!

For "AVERAGE" many people have ZERO credit cards and some like me have 10-20

Some may have 30-40 (I DID AT ONE TIME)...but those people that have ZERO...bring down the "AVERAGE"

 

I believe you missed my point entirely! I referred to BALANCES ON 5 OR MORE ACCOUNTS. There were no mention on the maximum credit cards a person should have. I merely restated the information from my TU FICO report, which happened to be my only negative. Do you honestly think revolving a balance on all your 10-20 credit cards together would boost your FICO score?

 

• 
  Calm down, guys, George is right, even if he usually yells his opinion out ...
  
  Never believe what a CRA tells you. They tell you what they want you to think.
  
  Statistics is a tricky thing. It shows our salaries are good, because of 0.001% of people making more than $1 million. If I make $20K and you make $180K, by the statistics we make in average $100K.
  
  Besides, having no balance on a card means you don't use it. Bad thing - they can't make any money off you. It all depends on what balance you carry. Keeping all your 10-20 cards with a balance under 10% will definitely boost your score. Peachkiwi, read this -
    http://consumers.creditnet.com/straighttalk/board/showthread.php?threadid=54119
  and you will see what I mean ...

 

Re: Re: How many credit cards are too many?

Maybe I am not making my self clear. For starters, the assumption that I spoke to someone at a CRA is totally incorrect. I was merely stating the facts as per my FICO report, and I will quote:

"Top Negative Factors

Here are the top factors where you have the most opportunity to take action that will increase your FICO score over time (they are listed in priority of impact on your score):

You have a relatively high number of accounts with balances
According to your credit profile, you have 5 accounts where your balances last reported are greater than $0. On average, U.S consumers carry balances on approximately 4 of their credit accounts at a given time."

 

Re: Re: Re: How many credit cards are too many?

You can be under 5% DEBT TO CREDIT LIMIT RATIO and have that as a FACTOR because you have balances on MORE THAN 4 CARDS...

You could owe $200 TOTAL on 5 additional cards (over the first 4) and they will be PAID IN FULL WHEN THE BILLS COME...but F.I.C.O. holds that AGAINST YOU!!! THAT IS JUST WRONG!!!

F.I.C.O. IS FIXED

THE CRA'S TELL YOU WHAT THEY WANT YOU TO BELIEVE (CAN BE WRITTEN OR BY PHONE)

 

Re: Re: How many credit cards are too many?

The answer to the question would be different for eveyone. It would depend on length of credit history and the current credit information being reported.

In my own unique situation if this helps. I have 7 open accounts right now. On a FICO simulator it says that if I open another card my FICO would drop some points. I would believe that if I were to not have lates in the future and continue to keep the balances low. FICO would say I could carry another account some day.

My girlfriends credit situation is simular to mine, BK(7) but the discharge is a year later. She has 4 open accounts being reported and the FICO simulator says to open another account to get more FICO points. So we just opened a 5th for her. I am curious as to what the FICO simulator will say once the 5th account is being reported.

I would say if you have damaged credit or a short credit history 5-6 open credit cards would be ideal.

If you have a long and good history, I would say a dozen credit cards would not hurt overall, if they were used responsibly.

 

F.I.C.O. IS FIXED
====================
or badly broken


THE END ** *** ** LB 59