How Many Credit Cards Should You Have?
I’ve always said that a store credit card is not as good as a bank credit card. Any store credit card that a consumer obtains will not generate the same number of positive points that they would have gotten had they obtained that same credit card from a bank or credit union. The best place to go to get a credit card is a bank or credit union, why is that? The FICO05® scoring model evaluates based on store credit card finance companies usually a little more accepting of people with negative credit behavior. The FICO® score just lumps all store finance companies together. FICO says if a consumer went to a store and applied for a store credit card maybe they’re not as reliable as a consumer compared to consumers who went to a bank and received lower interest rates.
If a store credit cards are not as good as a Bank credit card, what would be the very best credit card to get?
I have a theory that is currently unproven, I believe that an American Express credit card is probably the best credit card you can get from a credit score perspective. I know there are fees and I’m not talking about the lowest interest rate or fees or anything like that or points
I’m talking about from a scoring perspective an American Express credit card I’ve seen it give consumers as many points as a bank at least. If I was going to add a credit card to my credit profile I would get an American Express credit card. This is not a not a paid endorsement, I have not received any money from American Express. I do have an American Express card. This is strictly my opinion unverified facts as far as American Express
If I was going to add a credit card, I would add;
• American Express
• Big Bank credit card
• Big Credit Union
Make sure any lender selected reports to all three bureaus. Many times smaller banks or credit unions don’t report to all three bureaus. That’s why I’m weary of those institutions, smaller banks, smaller credit unions that don’t report to all three repositories, so I would avoid them.
If you want to get a perfect credit score you can’t have a store credit card.