How many credit cards are ideal for the optimal credit score?

[karenkc]

I used to have about 15 cards. I closed all of them except 4. I'd like to keep only one of them. It's the one I've had the longest and has the highest limit. I never use the other 3. When they're open they run the risk of fraudulent activity. I pay off a low balance each month on the one card, so the debt-to-credit ratio shouldn't be a factor. Is one enough to maintain a good credit score?

[maat55]

I have the one I use and two small ones I don't use. If I were not comfortable with the two I don't use, I would not hesitate to get rid of them.

[Joy123]

Yes, it would be good if you have one credit card and keep a good payment history for it.

[jIM_Ohio]

I used to have about 15 cards. I closed all of them except 4. I'd like to keep only one of them. It's the one I've had the longest and has the highest limit. I never use the other 3. When they're open they run the risk of fraudulent activity. I pay off a low balance each month on the one card, so the debt-to-credit ratio shouldn't be a factor. Is one enough to maintain a good credit score?

If you have 15 cards, all with good reports, that would be better than 4 cards, all with good reports.

The issue is knowing what a good report is:

1) you use the card
2) you pay off its balance in full
3) if you carry a balance, keep the balance less than 50% of the credit limit
4) make regular payments on all cards if they carry a balance


If I am applying for big credit (like a house or car), that lender is not going to stop giving me credit because I have 15 cards which have good reports (only way the car company makes money would be to lend me more money).

If you do not plan on using your credit, then having a high score is worthless.

My credit score was about 770 last I heard (car lender told me my score, house lender told me my score). I did not win anything with that score, so unless you USE credit, the actual score you have is pointless.

[dfeucht]

My credit score was about 770 last I heard (car lender told me my score, house lender told me my score). I did not win anything with that score, so unless you USE credit, the actual score you have is pointless.

Well I do know that car insurance rates (maybe others) are tied to credit score for some companies. It is an actuarial fact that their is correlation between credit score levels and automobile claims and that is not a rating area that the government has said is off limits as far as I know, so it is a factor. I believe it is an over/under level that is probably fairly low, but there are a few places outside of using credit where the score is worth something.

[chuckhughes]

credit

is good to save some money and invest in the market. have around four credit cards is good to have a good credit.

[karenkc]

If you have 15 cards, all with good reports, that would be better than 4 cards, all with good reports.

Thanks for everyone's replies.

jIM_OHIO- Actually, I've heard that home loans can be turned down because a person has too many credit cards even if they don't use them. It's because of the potential debt they represent. That's not why I closed mine though. Also, a high score is worthwhile for more than just loans. Employers may screen applicants' credit before hiring.

[GrimJack]

I have had the same one cc for more than 9 years, pay all my bills on time and have been underemployed (earning less than my usual wage) for a long time; when we went house-hunting I was told my fico was over 800. DW was 'pissed', she made 2x as me and hers was 780; the next year when a tax thingie fell off, her score went over 800. We still have not bought a house or applied for credit so our scores don't do anything but 'wow' real estate people. jim-O is right, our scores do nothing for us currently. We are thinking about buying a house in the next couple years so the importance might grow.

And I am finally working closer to my potential again - woohoo!

[puck36]

I have a credit score of 750-800 with only 1 card. I use it all the time to get the points and pay it off every time I get paid.

[JoshuaHeckathorn]

If one is enough for you and closing the other cards won't hurt your credit utilization ratio or length of credit history, it's certainly still possible to retain a solid credit score. That said, I think it's a risk in the current credit market to carry just one card. You never know when your credit issuer could tick you off by changing the terms or closing your card, and it's just a smart idea to always have something to fall back on. Having more cards in good standing will do nothing but help your FICO score.