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Valued Contributor
Posts: 4,175
Registered: ‎06-05-2013
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Re: A question for those with multiple credit cards.

[ Edited ]

You're assuming that they're mutually exclusive and they're not.  Good credit typically entails a thicker file.  If one has a thin file then one will need to build it to get better credit.  A thicker file will generally have a larger number accounts, a greater diversity of types of credit and longer AAoA.  All those impact credit scoring (along with the other factors mentioned in the link I posted earlier in this thread).

 

That said, one doesn't need a large number of cards for scoring purposes.  IIRC at least 2-3 revolving lines are the general recommendation for FICO scoring purposes.

New Member
Posts: 12
Registered: ‎02-27-2014
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Re: A question for those with multiple credit cards.

Well, i have a 748 transunion, but it just dropped 2 points because of the Chase Marriott i just signed up for. I just got my First CC's 9 months ago, but i had high CS then as well.

New Contributor
Posts: 107
Registered: ‎06-17-2011
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Re: A question for those with multiple credit cards.


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?

I have nine after closing half a dozen cards.

Why?

 

1. The more you have the more overall credit you have and the more you can charge without having it shred your score for carrying a high balance. Total utilization of all your CL's combined seems to have more impact on your score than whats on a single card. I have more cards and have over $40,000 total credit available...so when I borrowed over what ended up being nearly $6500 to buy a new vehicle it barely scratched my FICO at the time. It never dropped more than a total of 5 points or so...and of course has only gone up as Ive been paying the balance down (pretty much paid off at this point).

 

2. The more cards you have the more offers you have on the table at any given time. Guaranteed out of my 9 cards at least one of them is offering me 0apr...or a very low APR for at least 6 months.

I have had thousands of dollars of debt on my cards over the last few  years, nearly paid off now, and I'd bet that over all that Ive paid less than 3% total interest overall over the years.

 

Ive found that having a number of cards doesnt really seem to have any negative effect on my FICO so why not have as much credit available as I want?

:-)

FirstBankCard FICO 08 - 811
Discover TUFICO - 805
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New Contributor
Posts: 107
Registered: ‎06-17-2011
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Re: A question for those with multiple credit cards.


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


All of the above :smileyvery-happy:

FirstBankCard FICO 08 - 811
Discover TUFICO - 805
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Valued Contributor
Posts: 1,367
Registered: ‎04-20-2012
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Re: A question for those with multiple credit cards.

Rewards maximization and sign-up bonuses. The thicker file and utilization benefits are a nice side benefit.

TU FICO: 800 (2/1/14) | CK Score: 802 (2/1/14) | CS Score: 805 (2/1/14)

J.P. Morgan Palladium ($250k) | AmEx Platinum (NPSL) | AmEx SPG Personal/Business ($50k/$50k) | Citi Executive AAdvantage WEMC ($50k) | Citi Dividend WEMC ($50k) | Chase Sapphire Preferred VS ($50k) | Chase Ink Bold WEMC ($50k Flex) | Chase Ink Plus WEMC ($25k) | Chase Freedom VS ($25k) | Chase Freedom WMC ($25k) | Chase MileagePlus Explorer ($25k) | Chase Southwest RR Plus Business/Personal ($15k/$15k) | Barclays US Airways ($25k) | Barclays Hawaiian Airlines ($25k) | BofA Alaska Airlines ($10k) | Lexus Financial Services ($30k) | Mercedes-Benz Financial Services ($50k)
Frequent Contributor
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Registered: ‎11-22-2013
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Re: A question for those with multiple credit cards.

Plus you don't want to put all your eggs in one basket. Look at the OCCU Duck/Beaver fiasco. If that was your only card you'd be SOL at the moment.
NFCU Cash Rewards $14,000 | AMEX TE $12,400 | Sallie Mae $7,500 | WalMart MC $7,500 | Target Red Visa $6,000 | America Discount Tire $700

Last app 3/16/14. TU FICO 786 as of 3/6/15
Valued Contributor
Posts: 1,063
Registered: ‎07-09-2013
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Re: A question for those with multiple credit cards.

:smileylol:

:smileylol:


biggestmexi wrote:

Well, i have a 748 transunion, but it just dropped 2 points because of the Chase Marriott i just signed up for. I just got my First CC's 9 months ago, but i had high CS then as well.


Don't be fooled by a Fico score on a young credit file, 748 is a great score but it's only one piece of the puzzle. Imagine your credit profile (748 with oldest account @ 9 months) vs someone with the exact same 748 but has had 30 different cards/accounts over the past 10 years. Totally different story, not to say you aren't doing great because you are, just dont be fooled early in the game with a high score.  Persoally I have a ton of cards because of sign up bonuses, in the last 8 months of really getting serious on my credit DW and I have accumilated enough points for 3 r/t business class flights to 4 different destinations in asia. IMO i worked so hard to clean up/maintain my credit I might as well use it to my advantage 


   3/12 $3500     6/12 $1200      10/12 $1500   12/12 $3400    6/13 $12000      7/13 $5000      7/13 $2500       8/13 $2000    8/13 $6000

  | CSP (AU) $12,000 | Amex PRG (AU) | United $6,000 | OCCU $12,000 | Ink Bold | GM $3,200 | DCU $7500 | Luthansa $9000 | SPG $6,000 | Citi AA Executive $11,000 | Ink Plus $5,000                                                                         | EX 2/7 697 | EQ 10/27 721 | TU 12/15 719 |

Super Contributor
Posts: 9,518
Registered: ‎04-22-2013
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Re: A question for those with multiple credit cards.


biggestmexi wrote:

Well, i have a 748 transunion, but it just dropped 2 points because of the Chase Marriott i just signed up for. I just got my First CC's 9 months ago, but i had high CS then as well.


Right, it is perfectly possible to have a good score with a thin file (and two points is just noise).  Thicker files come in when you want to do stuff, such as apply for new cards, either "normally' or aggressively churning cards to get sign up bonuses.  As said earlier, with a thick file, adding new accounts has much less impact.   If you have just one card, adding another approx halves the average age of accounts with a big score impact.  With 30 open and closed accounts, another one has almost no impact.

Established Contributor
Posts: 949
Registered: ‎12-13-2013
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Re: A question for those with multiple credit cards.


bribro wrote:

Rewards maximization and sign-up bonuses. The thicker file and utilization benefits are a nice side benefit.


You have 9 cards from chase? Don't they supposed to have 6 card limit?

Valued Contributor
Posts: 1,367
Registered: ‎04-20-2012
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Re: A question for those with multiple credit cards.


newUser0 wrote:

bribro wrote:

Rewards maximization and sign-up bonuses. The thicker file and utilization benefits are a nice side benefit.


You have 9 cards from chase? Don't they supposed to have 6 card limit?


Yes. No; there's no hard limit AFAIK.

TU FICO: 800 (2/1/14) | CK Score: 802 (2/1/14) | CS Score: 805 (2/1/14)

J.P. Morgan Palladium ($250k) | AmEx Platinum (NPSL) | AmEx SPG Personal/Business ($50k/$50k) | Citi Executive AAdvantage WEMC ($50k) | Citi Dividend WEMC ($50k) | Chase Sapphire Preferred VS ($50k) | Chase Ink Bold WEMC ($50k Flex) | Chase Ink Plus WEMC ($25k) | Chase Freedom VS ($25k) | Chase Freedom WMC ($25k) | Chase MileagePlus Explorer ($25k) | Chase Southwest RR Plus Business/Personal ($15k/$15k) | Barclays US Airways ($25k) | Barclays Hawaiian Airlines ($25k) | BofA Alaska Airlines ($10k) | Lexus Financial Services ($30k) | Mercedes-Benz Financial Services ($50k)
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