more or less cards? for optimum scoring

Anonymous · ‎06-21-2007

I know there is lot of discussion and opinions re how many cards one should have to optimize your scores... mine currently EX585, TU589 & EQ595 (should be getting a bump end of this month into the 600's)

I have:

Secured boa $500 - 3 mo good history - I will try to convert to reg CC & CLI's

Orchard $500 - on the way - will go after cli's

Credit Union - $1000 personal loan on the way - they will convert to L.O.C. after 6 mo & give CLI

Lowes/GEMB - just got denied and impossile to talk to anyone

- sent recon thru PFB

Might try for Kohl's card after getting my scores into 600's

keeping util low on all will not be a problem

My thinking is that if I can land the Kohls card, I'll have two CC's, the Kohl's card and the Line of Credit....then move forward with no more TL inq's - Does that sound like a plan?

Will it make that much diff getting any more CC's??

One thing I forgot, I have many inq's due to shopping mortgages & refi's - understanding that inq's aren't the end of world, but I am trying to keep them at a minumum

Message Edited by ctrob on 06-21-2007 06:32 AM

Boswd · ‎06-21-2007

In my opinion I think having two cards and a personal loan for right now with your scores is a nice solid start. I personally would wait until your loan is almost paid off before you start shopping around for another line of credit. In the mean time just keep using your two cards wisely on small purchases and pay them almost totally off leaving about 1-5% Utilization to carry over to the next statment.

Now this is just my opinion and take on store cards. I HATE THEM. I think they are huge ripoff, for the most part. They normally carry huge interest rates and encourages large shopping purchases which could lead to financial problems. If your looking for a card to help boost your credit, you can only use it in their stores which normally would end up being a much larger, in most cases needless purcharses. As opposed with normal credit cards you can use them on necessary purchases like groceries, gas etc and you would get the proper use out of them.

But in all I would wait a few months and then go after a normal credit card. And this is also just my opinion, some disagree, but In the end having 2 to 3 cards is good enough to build a solid credit and having a postive loan on your record is also a plus.

Anonymous · ‎06-21-2007

Thanks, Good Advice...I hadn't even looked at the int rate on the Kohls card (now THATs smart)....

I was looking more for a good mix...

I thought I read somewhere that having a store card in the mix was good idea....but I agree with your thinking, thanks

smallfry · ‎06-21-2007

I like the idea of 1-5% myself. I read somewhere that high achievers have a shade over 96% available credit at their disposal. Since most PIF every month before the due dates this shows how the cards should really be used.

Boswd · ‎06-21-2007

ctrob wrote:
Thanks, Good Advice...I hadn't even looked at the int rate on the Kohls card (now THATs smart)....
I was looking more for a good mix...

I thought I read somewhere that having a store card in the mix was good idea....but I agree with your thinking, thanks

I'm not sure of where store cards fit in the mix of things or whether FICO distinguishes them from regular credit cards or not. But IF IF I was ever to get a store card, it would from either Lowes or Home Depot, that is because you only make purchases in there for stuff you need to pick up and would be buying anyhow. The rest as I said before are MoneyPit waste of good plastic.

Anonymous · ‎06-21-2007

I agree with Boswd.

Bank cards carry more weight in FICO scoring than store cards, although it's not clear how big a difference it makes.

MercyMe · ‎06-21-2007

I absolutely agree, Boswd! Start off slow, so you can manage what you have easily, and as you do that, your scores will go up -- perhaps not over night, but they will go up and before you know it, you will be inundated with offers!

Shoot, even the mailman noticed when my credit improved! Fewer CA letters and more CC offers! Ha! That's pretty bad, isn't it?

:- me

Anonymous · ‎06-22-2007

The implulse buying @ Kohl's wouldn't be a problem for me, I like Kohl's but go only when I need something......to be honest there would be more of a chance doing it in Lowe's - As in--"Hey, Look at the shiney new drill!!"

But if store cards don't really do anything spectacular for the overall mix then I'm not that interested anyways...

All great advice, Thanks

ctRob

Message Edited by ctrob on 06-22-2007 04:55 AM

Tuscani · ‎06-22-2007

ctrob wrote:

The implulse buying @ Kohl's wouldn't be a problem for me, I like Kohl's but go only when I need something......to be honest there would be more of a chance doing it in Lowe's - As in--"Hey, Look at the shiney new drill!!"

But if store cards don't really do anything spectacular for the overall mix then I'm not that interested anyways...

All great advice, Thanks

ctRob

Message Edited by ctrob on 06-22-2007 04:55 AM

Store cards do... it's just that bank cards hold more weight.