I only have one right now. Is there a number of cards that is considered bad and a number considered good?
2007-08-22 02:39:15 · 7 answers · asked by Holly Maria 1 in Business & Finance ➔ Credit
That depends on your income to debt ratio, your payments per month compared to your available income. Also, they frown on new accounts. so, if you have recently opened 3 in a row they see it as a financial disaser waiting to happen. When you think FICO score think of balance. you wanna have a good balance of debts ie house, car, credit cards, ect.
2007-08-22 03:33:45 · answer #1 · answered by pinktoenails 3 · 0⤊ 0⤋
At some point having too many open credit card accounts does negatively affect your score. I'm not sure exactly where that point is.
Personally, I don't think you need more than 2 major credit cards. If you only charge what you can afford to pay off every month, you don't need all those other cards. And over time, your credit limit will go way up.
I also don't think it wise to have a bunch of store or gas cards. Most of these places accept major cards. Unless there's some special reason, I recommend closing them.
One thing people forget about is that you have to secure and track all those credit cards. I see where people brag about having 30 or 40 different credit card accounts. How easy it would be to lose track of a couple cards and end up with an identity theft mess.
Sometimes common sense should take precedence over that FICO score.
2007-08-22 10:08:52 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋
I don't believe there is a magic number of cards that would be good or bad. The main thing to worry about is how much you have on your card(s) and that you pay them on time!
I checked my score a few years ago, and one thing that was a negative was that I had charged over half of my limit on one card. Plus, a factor was how long (little) I have had credit (like I can change my age!).
Keep paying your bills on time, and your score will be good!
2007-08-22 09:50:09 · answer #3 · answered by Kristi H 2 · 0⤊ 0⤋
The number of credit cards makes no difference, it's how you manage them that matters.
As long as you pay on time and keep your balances below 30% of your credit limit you can have as many as you want.
At one point, I had 14 credit cards and my credit score was over 750. (Still is).
For the best credot score and profile you need 3 credit card accounts (revolving) with balances below 30% of your credit limit and 2 cars, boats, homes, furniture or personal acounts (installment) all with good long pay history's.
This profile will give you the best score and allow you to get just about any loan you may need in the future at the best rates.
2007-08-23 10:02:45 · answer #4 · answered by ? 7 · 0⤊ 0⤋
I have not, yet I do know every time a c. card co. checks your rating for approval, your score does go down, and honestly, you really don't need that many anyway.
If you are in need of a large amount of money, either get a home equity loan or a personal loan thru your local bank.
2007-08-22 09:48:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No more than three. Examples: Visa, Discover and a Sam's Club or Gas Card.
2007-08-22 20:25:10 · answer #6 · answered by Gary 5 · 0⤊ 0⤋
usually two is a safe amount. no more than three. and try to keep your card from being more than 75% full. that will also help your score.
2007-08-22 09:46:58 · answer #7 · answered by swatthefly 5 · 0⤊ 1⤋