Credit Cards Effect on FICO Scores
Author: Carl
Posted: Mon Jun 28, 2004 5:35 pm
Post subject: Credit Cards Effect on FICO Scores
9/16/2002 11:01 am CDT
I have four major cards (AMEX, Mastercard, Visa, Discover),a Sears Card, and one gas card.
Is this too many cards for my credit rating? Sould I get rid of some? I mainly use the AMEX cash-back, the Visa (Holiday Inn Priority Rewards), and the Citibank Platinum Dividend Select Mastercard. Very seldom Discover. Sears only when there is a discount for using Sears card. The gas card hardly ever (It only has a $1000 limit).
AMEX: $15,000 limit
Visa: $14,500
Discover: $6000
Mastercard: $13,000
Sears: $4000
ExxonMobil gas card: $1000
Is what I have a 'good mix'?
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Author: 123
Posted: Mon Jun 28, 2004 5:35 pm
Post subject: Credit Cards Affect on FICO Scores
9/16/2002 11:31 am CDT
Is what I have a 'good mix'?
No, this is not the mix that the FICO score is looking for,you have all revolving trades but that isn't bad.I have the same thing just credit cards only.
What a good mix would be as far with credit is having a car loan,mortgage,and revolving card accounts,and even a charge card"non revolving included in the mix" such as amex,jcb,etc.
Is this too many cards?No beleive it or not,having 5 to 7 cards is a reasonable number of cards to have.What FICO takes into consideration is the credit being used against total availiable credit.It is recommended not to use more then 50% but 40%is what i use against total availiable credit.If you had a total availiable credit of 50K then no more then 25K should be used because your score will start to take a hit if the score model sees more then 50% credit being used on the revolving end.
Author: miggykat
Posted: Mon Jun 28, 2004 5:36 pm
Post subject: Credit Cards Effect on FICO Scores
9/18/2002 1:09 am CDT
thanks for this tip on ratio of use to available credit- Ilearned something today!
Author: 123
Posted: Mon Jun 28, 2004 5:37 pm
Post subject: Credit Cards Effect on FICO Scores
9/18/2002 10:33 am CDT
You're very welcome miggykat,
Alot of people needs to know this because lenders will raise interest rates if they see high credit usage on credit cards.I am glad that i have shared a good tip for you on credit cards.
Posted: Mon Jun 28, 2004 5:35 pm
Post subject: Credit Cards Effect on FICO Scores
9/16/2002 11:01 am CDT
I have four major cards (AMEX, Mastercard, Visa, Discover),a Sears Card, and one gas card.
Is this too many cards for my credit rating? Sould I get rid of some? I mainly use the AMEX cash-back, the Visa (Holiday Inn Priority Rewards), and the Citibank Platinum Dividend Select Mastercard. Very seldom Discover. Sears only when there is a discount for using Sears card. The gas card hardly ever (It only has a $1000 limit).
AMEX: $15,000 limit
Visa: $14,500
Discover: $6000
Mastercard: $13,000
Sears: $4000
ExxonMobil gas card: $1000
Is what I have a 'good mix'?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: 123
Posted: Mon Jun 28, 2004 5:35 pm
Post subject: Credit Cards Affect on FICO Scores
9/16/2002 11:31 am CDT
Is what I have a 'good mix'?
No, this is not the mix that the FICO score is looking for,you have all revolving trades but that isn't bad.I have the same thing just credit cards only.
What a good mix would be as far with credit is having a car loan,mortgage,and revolving card accounts,and even a charge card"non revolving included in the mix" such as amex,jcb,etc.
Is this too many cards?No beleive it or not,having 5 to 7 cards is a reasonable number of cards to have.What FICO takes into consideration is the credit being used against total availiable credit.It is recommended not to use more then 50% but 40%is what i use against total availiable credit.If you had a total availiable credit of 50K then no more then 25K should be used because your score will start to take a hit if the score model sees more then 50% credit being used on the revolving end.
Author: miggykat
Posted: Mon Jun 28, 2004 5:36 pm
Post subject: Credit Cards Effect on FICO Scores
9/18/2002 1:09 am CDT
thanks for this tip on ratio of use to available credit- Ilearned something today!
Author: 123
Posted: Mon Jun 28, 2004 5:37 pm
Post subject: Credit Cards Effect on FICO Scores
9/18/2002 10:33 am CDT
You're very welcome miggykat,
Alot of people needs to know this because lenders will raise interest rates if they see high credit usage on credit cards.I am glad that i have shared a good tip for you on credit cards.
posted by CardRatings.com at 11:57 AM
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