A question for those with multiple credit cards.

[biggestmexi]

Why? I am trying to understand but what is the reasoning of having so many cards 5+? I do not want to sound rude, but i just do not understand. Is it a secret to have a bunch or is it really just to maximize the return?

[Kenny]

There is no secret.

Some people like to have each card to maximize the best of each reward category. Some folks like to pad their available credit, so if they have a month that they have to float a purchase, their scores don't take a nose-dive. Some have so many so that their file is considered "thicker". Some people like the vanity of it. Some folks have it for necessity. Some folks have an addiction to seeing congratulations! lol

I just view credit as, if you're going to spend the same amount of cash, you might as well spend it on a tool that will give you cash back for utilizing it -- thereby giving you a discount on your daily expenses.

Everyone will have their own reasons. Some people don't believe in having more than 5.. and I can understand that logic, as well.

[biggestmexi]

Thanks, very helpful answer and I think it should be stated somewhere.

Especially when new people come aboard..........the board and see these. It seems intimidating or almost the norm. I understand about getting as much back as possible. I am going through that phase now after learning so much about credit and such with the past years. Being relatively young (28) am I have learned a lot recently. My wife and I just got our first cards 9 months ago. An AMEX BCP and a Capital One (Now Quicksilver), and yesterday just signed up for a Chase Marriott (my son is now a bit older where we can travel better and what better way lol)

I also am changing checking accounts to a Kasasa with 2.5APY. I figure, why not get free money where I can.

Thanks again!

[user5387]

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@biggestmexi wrote:
Why? I am trying to understand but what is the reasoning of having so many cards 5+? I do not want to sound rude, but i just do not understand. Is it a secret to have a bunch or is it really just to maximize the return?

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I believe at least 2-3 cards is considered optimal for FICO scoring purposes.

[TRC2k13]

My reasons are simple... I was trying to establish a nice rebuild profile.

My CU (BECU) told me the week I got my discharge that all they would offer me was a secured VISA.  They said to go open an account with Cap One and then come back in 6 months.  The accounts in my sig are listed in the order I opened them.  I started with a car loan.. got some Cap One and other major CC's... then gas cards and a WM... then in December I went back to BECU and they followed through on their promise and gave me a $7k card.

NOW my profile is complete.  I have a mix of revolving and installment accounts (also have a small balance of student loans in addition to my car) and of my revolving accounts one of them is a large limit of over $5k.

Don't need anything else... I garden for 2 years and when all these inquiries and my 13 drop off my reports in early 2016 I'll be golden.  For me it wasn't about I needed X number of cards... it was about getting the mix I wanted for a nice rebuild.

[takeshi74]

Whiel I don't know of a sticky off the top of my head this is a very common topic so there are also former discussions that you can reference.

Each card serves a different purpose for me.  Two of them are just SD cards that I keep for AAoA and low APR's (as a contingency measure as I PIF).  Most of of my cards are for rewards as no one card offers the hiighest rewards for every possible spend category out there.  I have one card that is mainly just for the assocaited flight benefits on United.

Don't fixate solely on number of cards.  The number itself doesn't mean much.  Some are just fine with a few cards.  Some need/want more.  Utlimately you need to determine what works specifically for you and what you can reasonably manage.

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@biggestmexi wrote:

Especially when new people come aboard..........the board and see these. It seems intimidating or almost the norm.

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As with just about any topic out there the "norm" doesn't matter.  What specifically works for the individual is what matters.  Don't just do things to keep up with the Joneses whether it's credit or anything else in life.

[Themanwhocan]

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@KennyS2006 wrote:

There is no secret.

Some people like to have each card to maximize the best of each reward category. Some folks like to pad their available credit, so if they have a month that they have to float a purchase, their scores don't take a nose-dive. Some have so many so that their file is considered "thicker". Some people like the vanity of it. Some folks have it for necessity. Some folks have an addiction to seeing congratulations! lol

I just view credit as, if you're going to spend the same amount of cash, you might as well spend it on a tool that will give you cash back for utilizing it -- thereby giving you a discount on your daily expenses.

Everyone will have their own reasons. Some people don't believe in having more than 5.. and I can understand that logic, as well.

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Well, you mentioned two reasons that apply to me. There is also obtaining signup bonuses. And diversifying a credit card portfolio across multiple banks.

[biggestmexi]

What does having a "thicker" file accomplish?

What does diversifying a credit card portfolio do for you?

Serious questions.

[takeshi74]

A thicker file is more likely to get approvals and can hold up better against the impact of applying for and opening new accounts.

Diversifying helps with one's credit scoring and also acts as a safety measure (i.e. don't put all your eggs in one basket).

If you haven't read up credit scoring you might want to start there.  There's a subforum on the topic as well as this page (among many other resources):

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

[biggestmexi]

Wouldn't that be true just about good credit as well?