Type Of Credit = Poor/Fair/Fair????

[rbrmail]

Hi guys!

I'm new here, thank you all for having me. I recently did a credit report for someone using Equifax and got great scores for all 3 of the big companies. The only downside, I would say, is that the "TYPE OF CREDIT" section is rated as

Poor / Fair / Fair, by the 3 different companies.

Now, I spoke to Equifax (which gave us the poor), and they said that even though we have 3 credit cards and they make payments on time and are very active, it is recommended to have 5-6 cards to improve that score.

Is this true or should we dispute this, considering that we make BIG purchases and pay them off using these three cards?

Can't wait to hear a second (and maybe third.. fourth..) opinion! Thanks again

[30daylate]

Welcome to AAA! It is totally an awesome community. I would say that adding more credit cards isn't really going to help you. Increasing your credit cards might actually hurt your credit because of all the hard inquiries so that sounds like pretty bad advice. Here is what I would do:

Pay off credit card debt if you have any - that decreases credit utilization

increase your existing credit limits- that decreases credit utilization

get negative items of your report, if you have any late payments or collections you need to get those off of there.

[rbrmail]

Originally Posted by 30daylate

Welcome to AAA! It is totally an awesome community. I would say that adding more credit cards isn't really going to help you. Increasing your credit cards might actually hurt your credit because of all the hard inquiries so that sounds like pretty bad advice. Here is what I would do:

Pay off credit card debt if you have any - that decreases credit utilization

increase your existing credit limits- that decreases credit utilization

get negative items of your report, if you have any late payments or collections you need to get those off of there.

Thansk for your reply. Well, I'm curious about this advice only because we don't have any debt that is not being paid off and everything looks crystal except for that one section on the report. I should mention at least one of these cards is used for big business purchases as well.

So if we have no lay payments, collections, etc, then increasing credit limits is our only option? I ask because the credit limits on these cards is high already (one is an AMEX Centurion "black card"). Any other tips? Thanks again for your help