Add a Charge Card Help my "Account Mix?"

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Add a Charge Card Help my "Account Mix?"

Postby Squid7085 » Mon Mar 21, 2011 11:28 pm

I had a pretty simple question. Aside from having a Mortgage, what would help my report have a more diverse mix? I have Student Loans, a Car Loan, and Credit Cards. Is a Charge Card, a la Amex, seen differently on a Credit Report? Given the nature of repayment, in full every month, it seems like that would help ones report.

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Postby jeffysdad » Fri Mar 25, 2011 7:33 am

Unless you think a charge card would be useful to you and worth the annual fee, I wouldn't worry about it. (I also don't think a charge card would help your credit score much if at all.)

Account diversity is a factor in credit score, but it is not nearly as important as managing your balances and limits and paying on time, all the time. Keep doing that and the rest will take care of itself.

I have never had student loans or a mortgage, just credit cards and two car loans (and the last car loan was paid off eight years ago); my score hovers around 775, according to a popular free score-tracking website. A recent credit pull by a bank showed a score of close to 800.

Home and car shoppers aside, the majority of people don't need to worry about their credit scores nearly as much as the numerous fee-based monitoring services would like them to. Credit score anxiety is putting a lot of money in somebody's pocket.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Apr 11, 2011 1:33 pm

Charge cards are in the "revolving accounts" category, as are credit cards. As jeffysdad said I see no reason to get a charge card solely for that reason.

I have never had student loans or a mortgage, just credit cards and two car loans (and the last car loan was paid off eight years ago);

Same here. It's the auto loans that are our saving grace because they give us something under the installment category. Before mine my score was only in the mid 700s but afterward it went up by around 40 points. I could easily pay it off but given the low interest rate and the fact that I would like to buy a home some day, I am keeping my loan open for its full duration so I have that as installment history on my credit report.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

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