Reply
Valued Contributor
Posts: 1,465
Registered: ‎08-30-2011
0

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!

Diners Club Premier MasterCard $50K / AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 818 EQ = 822 TU = 830 - 01/2015
Established Contributor
Posts: 662
Registered: ‎02-20-2013
0

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.


DCU ( pulled 3/29/13) EQ04 683 | Amex (pulled 3/28/13) EX 760 | US Bank (pulled 3/28/13) EX 753
CreditKarma (4/19/13) TU-TR 701 | TU Vantage 788 | USAA FAKO (3/31/13) EX 728, EQ 699, TU 737 |
Inquiries (4/18/13) EX 13 | EQ 13 | TU 14
Established Contributor
Posts: 662
Registered: ‎02-20-2013
0

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.


DCU ( pulled 3/29/13) EQ04 683 | Amex (pulled 3/28/13) EX 760 | US Bank (pulled 3/28/13) EX 753
CreditKarma (4/19/13) TU-TR 701 | TU Vantage 788 | USAA FAKO (3/31/13) EX 728, EQ 699, TU 737 |
Inquiries (4/18/13) EX 13 | EQ 13 | TU 14
Senior Contributor
Posts: 6,260
Registered: ‎08-16-2012
0

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
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Moderator
Posts: 13,871
Registered: ‎04-15-2011
0

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.  



Starting Score: 504




July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Established Contributor
Posts: 734
Registered: ‎02-01-2012
0

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. 

 

Start (Sept 2011): low-mid 600s. NOW: TU FICO: 801, EQ FICO 808, EX FICO 798 (PSECU). Goal: Achieved! Now Maintain!
Frequent Contributor
Posts: 348
Registered: ‎08-17-2012
0

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.

EQ 778 | TU 776
Barclay US Airways WMC 7.5k | BCE 5.8k | BofA Travel Rewards 9.1k | Chase Marriott Premier 13k | Citi TYP WMC 6.5k | Freedom Visa Sig 8k| Discover it 10k
Frequent Contributor
Posts: 499
Registered: ‎01-22-2011
0

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
Posts: 283
Registered: ‎12-16-2011
0

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.

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
Super Contributor
Posts: 7,132
Registered: ‎02-27-2013
0

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.

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.