- Centurion Member
- Posts: 1157
- Joined: Sun Jan 26, 2014 3:55 am
- Location: US
If you follow yfan's advice you will be in good shape in a couple of years. Hopefully you won't need a mortgage or a car loan soon. If not I see nothing wrong with your approach. Two years is nothing in the credit world, and by then (assuming good behavior) your accounts will have aged, you'll have much more positive payment history, and your HPs will be gone. You should have a pretty strong credit profile by then.
It doesn't do any good to close any accounts now (unless just having them is encouraging you to spend money you otherwise wouldn't): you've already taken the HP. Of course 18 HPs is a lot, but the impact will be gone relatively soon.
Are you wrong about many cards with perfect history being better than a couple cards with perfect history? I don't know for sure, but it did work for me. I took a similar approach in starting my credit history. Out of high school I opened up a lot of store accounts (spread out over a few years, but still), but I didn't let it influence my spending and I paid everything on time and in full. I've yet to pay anything in credit card interest. By the time I was out of college I could get any prime credit card I wanted with high limits as well as a car loan and a mortgage at the best available terms. Some people simply cannot handle credit. They approach a store card as free cash they have in their pocket available to spend. You've gotten into some trouble in the past, but you say you're paying them all off now. The key is making sure your credit decisions are secondary to your financial decisions (i.e., don't let it impact your spending and don't get into debt by chasing credit).
To answer your question more directly: I think your best course of action is to sit on what you have and be diligent about managing them responsibly and avoiding any more credit trouble. Pay every account in full each billing cycle. I'd also pay that installment loan off as soon as possible (I hate paying interest, and there's no need to just to build credit). I don't know what you consider a high limit card, but it will happen AT MOST in a couple of years.
EX - 809 (11/16) | TU - 803 (11/16)
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now