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Valued Contributor
thom02099
Posts: 1,317
Registered: ‎08-30-2011

Re: Banker says I have too many credit cards


Slab wrote:

Thanks to all of you. I am a member of a credit union and will go there. It is just sort of disheartening when one realizes they aren't getting any loyalty from their bank. The banker said I should just keep two of my cards which I thought was foolish.



...and you are correct, it is foolish.  That's old school thinking from that "banker".  As the others have said, run...quickly...elsewhere.  If he's giving this kind of advice to you on this matter, imagine what other bad advice he's giving on other topics.  Probably telling people not to put money in the stock market but invest in his CDs...at less than 1% return!

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Established Contributor
NJTurnpike
Posts: 662
Registered: ‎02-20-2013

Re: Banker says I have too many credit cards

Just keep 2 cards?!?!

 

Hahaha!!! that's like saying don't bother negotiating less than sticker price for a new car. Seriously, I maximize my savings whereever I can with 5x or at least 2x. I never ever use cash because I'm leaving money on the table if I do.

 

I weight the cost of shopping at a big box store vs a local krausers.

 

Any "modern" banker would never give "2 card" advice in this day and age. complain to his supervisor and move on to another bank.


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Established Contributor
NJTurnpike
Posts: 662
Registered: ‎02-20-2013

Re: Banker says I have too many credit cards

To add many more than the two cents I have already added, I recently had lunch with some very senior bank analysts. Guys who get paid EXTREMELY well to cover the likes of Goldman, Citi, JPMorgan, Discover, etc. 

 

I casually mentioned that I had some decent sized limits on a number of cards. I immediately got chastised for having SO MANY cards. I was told I would likely never qualify for a good mortgage as a result of having so much open credit lines.

 

Granted now I had some duds in my portfolio at the time. If you search my posts you'll see my reverse app spree thread. (15+ cards closed and shredded).

 

But what their advice really taught me was that people who make 300k+ don't usually understand the value of having so many open credit lines and maximizing rewards. A savvy modern loan officer will understand that you have a Chase Freedom for the 5x savings, that you have your Amex SPG for the hotel points, that you have your Chase Southwest for the companion bonus. All that is needed to confirm their suspicions is an adequate AAoAs and a review of your balance and payment history.

 

An extremely risk adverse bank like PenFed will just immediately see your 3x income credit lines and be like, well there's the "possibility" of this person maxing out and being unable to pay as a result, so DENIAL.

 

there are tens of thousands of banks and credit unions in this country, find one that wants your business.


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Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: Banker says I have too many credit cards

I can't imagine too many cards being detrimental to your score.
And if a bank you have a relationship can't trust you, then wth.
Additionally, why would they be concerned with use of existing lines vs you opening new lines. Each is just as likely in time of financial crises... Lol
Move on, I don't like conservative prudes.
:-) good luck
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Shogun
Posts: 12,883
Registered: ‎04-15-2011

Re: Banker says I have too many credit cards

What I'm thinking has already been said.  You're at the point where you can shop and choose.  


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Established Contributor
ztnjpv
Posts: 726
Registered: ‎02-01-2012

Re: Banker says I have too many credit cards

IECREDIT said:

 

"Being a banker myself and processing credit...."

 

----------------------------------------------------

 

Tell me, since you're a banker:

 

Do the lender version credit reports that creditors and lenders see during applications differ from the consumer ones we see here and elsewhere (FAKOs) in terms of showing actual monthly spending instead of just closing balances? Or are they the same as the reports we see more or less?

 

I ask this because I very frequent (actually ALWAYS) charge A LOT more than shows up as a "balance" on my credit reports. Like most others who do this, I actively keep my "visible utilization" down for credit scoring purposes and to not scare any potential lenders. 

 


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Frequent Contributor
OptimasPrime
Posts: 348
Registered: ‎08-17-2012

Re: Banker says I have too many credit cards


Slab wrote:

I recently applied to my bank for a recreational vehicle loan and it was approved. They had previously financed a RV for me which I have since sold and the terms were 6.2% And now the banker says they will approve me at 7.2%. My score has improved from the first loan to now by at least 25 points. I couldn't figure out why they would charge me a higher rate until I talked to the main guy at the bank and he told me that I now have too many credit cards so I am now more of a risk. I have 7 cards with $32800 available credit but keep my usage at 2% on 1 card. Does any of this make sense?


Just wanted to chime in and say that sometimes the people who you would expect to know the most about certain things are not as knowledgeable as they should be. This semms to be the case with this banker.

 

The thought of keeping only 2 credit cards strikes me as a bit antiquated, and certainly not in line with the mainstream concensus on the issue -as other posters have indicated.

An example from my personal experience- I've spoken with amex reps who are less informed about current Amex policy than I am.

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Frequent Contributor
sandman2435
Posts: 360
Registered: ‎01-22-2011

Re: Banker says I have too many credit cards

I can totaly relate to what you are saying..The other day I app for a DCU Credit card and was told,That I have way too many accounts and they would not be able to issue me a card..I  myself have over 300K of avalable credit which I manage very well...I pay in full and always on time and most of the time before the statements even cut..I use most of the cards I have for their rewards..and in the past year have got over 3K worth of rewards

Frequent Contributor
Slab
Posts: 283
Registered: ‎12-16-2011

Re: Banker says I have too many credit cards

I appreciate all of the input and have realized that the bank that was so friendly and anxious to get my business now think they are my credit advisors.

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Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013

Re: Banker says I have too many credit cards


ztnjpv wrote:

IECREDIT said:

 

"Being a banker myself and processing credit...."

 

----------------------------------------------------

 

Tell me, since you're a banker:

 

Do the lender version credit reports that creditors and lenders see during applications differ from the consumer ones we see here and elsewhere (FAKOs) in terms of showing actual monthly spending instead of just closing balances? Or are they the same as the reports we see more or less?

 

I ask this because I very frequent (actually ALWAYS) charge A LOT more than shows up as a "balance" on my credit reports. Like most others who do this, I actively keep my "visible utilization" down for credit scoring purposes and to not scare any potential lenders. 

 


it differs a little, but not much.

it shows monthly spending and monthly payment, but the number isn't accurate all the time depending on the lender itself. some lenders do not report that or they simply report your payment as whatever the monthly minimum payment is. this is a problem with the lender, not the CRA.

 

However, not all underwriters / analysts bother combing through all these data. it's just too much work considering the sheer volume of the apps they have to go through each day. An underwriter for a really large amount of loan, such as for a mortage, is more to likely look through all these data.

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