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bwade1

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Impact of only having charge cards on credit score
Hello. I'm 28 years old and have been building credit for the past 9 years. Here is my question. In Jan 2016, I had two active cards - 1 Amex gold premier charge card and 1 Amex / Jetblue Credit Card (with a $3K credit limit). During this time my credit was roughly 810 across each of the three bureaus. Recently, Jetblue and Amex dropped the partnership and as a result i decided to cancel the Jetblue Credit Card. This resulted in a significant drop of Credit Score - within the 770 range. Since then, I've added the Amex Platinum charge card - and my credit has stayed the same in the 770 range. Since both charge cards don't apply towards the 30% credit utilization, am I putting myself at a disadvantage (i've never missed a payment in 9 years on any card). Also, would it make sense for me to open a credit card with a small 3k limit, put most of my purchases on the charge cards and simply charge small purchases to the new credit card? Would this help me get that jump back into the 800's?

Thanks so much

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Cancelling the jet blue was not in your best interest.  It affected your age of accounts as well as your number of accounts.   I would have waited to determine if I could have kept the age when it migrated to its new provider.   Utilization is important in showing credit usage.  When you have cards with no preset limit, you are always 100% on those cards.   Your balance is your limit.  Having a card to offset this would be of benefit to your credit report.  However, when you first apply, you'll see two drops.  The hard inquiry as well as the new account.  This is something you can overcome over a period of time (3-12 months). 

Reply by
bwade1

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Faidos - thank you for the response. Learning experience for me. 

Over the next 4 months I'm going to begin the house search for my first house. Would you reccomend I just stay put with the two charge cards or take the step of opening a credit card with with a $3kish limit.

Thanks again 

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