How many credit cards is good for good credit? October 28, 2009
Posted by Banking in : Credit , trackback
I currently have 3 credit cards. A capital one, gap and just opened a citi bank a month and a half ago. I currently have a score at 684 and have had my capital one open for 2 years now. I am 21 but I want to make my score higher. I pay the cards off in full all the time but is one more card too many? will that affect my score if I have 4 or 5 cards?Submited by:hyphymane88
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I think Stay where your at…Use each card each month and do like your doing by paying it off each month…more cards do not equal a better score…
2 credit card at less than half balance and you pay more than the minimum amount and that will improve your score having or requesting to much credit makes creditors believe you are stretching your resources to far and you are undependable with money so so buy low pay high my friend
I think Its not the amount of cards you have that will improve your credit, rather the quality of your credit.
If you are a 750 with five $200 limit credit cards, you will still have difficulty getting a loan.
The problem with credit cards is that if you have a high balance in proportion to your credit limit, then your credit score will suffer.
For example…if you have a credit card with a $1,000 limit and you have $950 charged on it, your score will go down. If you have only $200 charged on it your score will not go down.
Careful. Your score will drop if you open too many lines of credit in a short amount of time. And it is possible to have too much credit as well. I would stick with the 3 cards. If you want to get another one, i would suggest a store card for like Speedway or Target or something. Not directly from a bank.
I think It isn’t so much how many credit cards you have, but how you manage them – along with how you manage the rest of your finances. Make sure you pay your bills on time (phone, hydro, etc.) and in full. Check your credit profile on occasion to make sure there are no mistakes or forgotten bills from the past. It takes time to build up a good score.
I think It isn’t the number of cards, it’s the balances you carry. Use the three cards you have and pay them in full every month. That will build good payment history. The longer the history, the better the score.
You also need other types of credit to expand your credit. Experts recommend 3 or 4 credit cardss and 2 installment loans to get the best mix of credit for the best FICO score.
You build credit over years, not months.
I think For 21 you have poor credit. Not sure if this is true, but when you use you debit card as a credit-that might help with the credit score.
Taking out a loan that you are able to pay (car.. ect), paying bills on time are all good ways to help establish credit. But credit works different.
In order to have a good credit you must be able to have a balance on your cards and also more room for spending. Its always good to pay your credit cards in full, but when you have a card with a $4000 limit, and you put $25 on it a month and pay it in full every time, you dont build up credit. Pay minimum amounts a few times. That will help.
It goes by ratios and simple math. A balance of $500, with payments due on time, and a spending limit of $2500.. they do this with all credit cards. Not 100% how it works.
Im 21 with a credit score of about 725 or higher. I got a car loan on my own, and I drive a 2006 Ford Explorer by doing what I told you. =)
Im bad at explaining things, since Im not in the business world, but Im sure you get the jist of it.
Find more information at the site listed below. Im sure thers more tips!
No trust me, you’ll be fine, if not better off, with 4 or 5.
I’m also 21, and my FICO (just checked a minute ago) is at 795. I started off at 18 with Capital One, and have since grown to a bank credit card, and 3-4 store cards (old navy, buckle, best buy, etc.)
They actually say it improves your credit score more if you carry a balance for a few months. I’ve done that with my Capital One and Best Buy, even though I could’ve paid it off within the first month.
Just be careful to not go more than 5 or 6. I’ve heard that’s the max that creditors want to see. I’ve gone through and cancelled probably like 5 or 6 over the years to maintain this amount.
Finally, if you get a a car or home loan, this also may greatly improve your credit.
Good luck friend
In my opinion you have a good score to be a 21 boy. It is just my personal opinion. I suggest you not having more credit cards because it could really harm your credit score.
2-3 credit cards are enough (and too many sometimes)
Do not overspend and pay always on time is all you need to have a high score.
cheers!