In our constant battle to end up with the highest credit scores possible we move
balances, increase credit limits, open new accounts, dispute delinquencies, and do
whatever else we can think of to increase earn more points. One of the increasingly
asked questions I receive is what’s the optimal number of credit cards for my score?
This is one of those “you’re putting too much thought into this” types of questions. First
off, there is no optimal number of credit cards. Second, the number of credit cards would
include retail, gasoline, and general use credit cards. This means you probably already
have double digits of credit cards on your credit reports already.
The right number of cards isn’t important. How you’re managing the cards you’ve
already got (and might get in the future) is important. If you have one or two cards that
might seem “good” because it’s not that many. But what if those two cards are loaded
with missed payment and are heavily utilized? In that case those two cards are killing
your credit scores.
What if you have 20 credit cards, which might seem excessive? And what if those 20
cards are old, have no history of missed payments, and are debt free? Well, in that case
those 20 cards are great for your credit scores.
This is one of those issues that really ticks off the FICO-haters and blow hard celebrities
that suggest you shouldn’t have any credit cards because they’re so evil (sic). They
suggest that FICO incents you to have debt. However, that’s not true. You can have as
many credit cards as you want and as long as you’re paying them on time you’re in good
shape. And finally, you’re not required to use any of them in order to have a killer FICO
score.
The bottom line is this…don’t worry about how many credit cards you’ve got. Worry
about what you’re doing with the ones you do have. Anything more than that is a waste
of your time and energy.
Michael B. Citron is an internationally known public speaker and author. He lectures for professional associations worldwide. Michael is a serial entrepreneur who is dedicated to living the American dream, and helping others to do the same. His role at DisputeSuite.com has placed him in the spotlight of the credit repair industry. DisputeSuite is the largest provider of technology and education services to the industry, and has been a catalyst in the forward movement to standardize the credit repair industry.
P.S. DisputeSuite provides a variety of solutions for your credit repair business. From engaging custom websites, to dispute processing services, to a robust CRM with automations and portals, DisputeSuite is a One-Stop Shop to making your Credit Repair Business A Success! Let’s chat today to discover the best plan for you: 727-877-6812 or support@disputesuite.com
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