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Regular Contributor
scarzy
Posts: 230
Registered: ‎04-08-2008
0

Multiple credit cards...

When I first started off obtaining credit, I got various credit cards like Citi's, DinerClub's, Credit union's Visa/MC,

and multiples accounts from different stores. During that time, I only applied because I wanted to see

how many cards I could "score" for my wallet. It was more so for "bragging rights." Due to my destructive behavior and my hours getting cut,

I'd filed for Ch7. 

 

Now, I am not pointing the finger at anyone, I just want to understand and learn. I see people re-establishing their credit, and that's great.

They go applying once they are ready,and slowly but surely, they will have 6-10 tradelines on their portfolio. Most will just use a few, and PIF always.

 

So, what are the reason(s) to have that many open lines?? Has the "bragging rights" haven't changed??

 

I'm just curious

 

 

 

 

starting EQ FICO : 526 current EQ FICO : 640 starting TU FICO: 538 current TU FICO : 656

My wallet: Capital One cash rewards $1,300- ~ NFCU signature cash rewards $5,000- ~ NFCU nRewards $5,000- ~ NFCU LOC $1,000- ~ Target $200- ~ Kohl's $300- ~ Walmart $800- ~ Amazon $900- ~ Updated 6/2013

Discharged Ch7 Nov.16, 2012

Senior Contributor
Wolf3
Posts: 3,197
Registered: ‎01-24-2010
0

Re: Multiple credit cards...


scarzy wrote:

When I first started off obtaining credit, I got various credit cards like Citi's, DinerClub's, Credit union's Visa/MC,

and multiples accounts from different stores. During that time, I only applied because I wanted to see

how many cards I could "score" for my wallet. It was more so for "bragging rights." Due to my destructive behavior and my hours getting cut,

I'd filed for Ch7. 

 

Now, I am not pointing the finger at anyone, I just want to understand and learn. I see people re-establishing their credit, and that's great.

They go applying once they are ready,and slowly but surely, they will have 6-10 tradelines on their portfolio. Most will just use a few, and PIF always.

 

So, what are the reason(s) to have that many open lines?? Has the "bragging rights" haven't changed??

 

I'm just curious

 

 

 

 


IMO, Of all the things to brag about, Credit Cards are at the bottom of the list.   

 

Credit is very useful and almost necessary for most peoples financial lives.   People have open lines for cash flow, rewards, convenience, protection, perks.     

 

Blogger
HiLine
Posts: 3,162
Registered: ‎10-19-2012
0

Re: Multiple credit cards...

Having multiple credit cards is essential for building a reputable credit history, which in turns leads to more favorable terms for future loans. The more debts you manage well, the larger variety of creditors you have successfully dealt with, the higher diversity of debts you have experience with, the more creditors can trust you to pay back the debts you have with them.

Established Contributor
ccnewcc
Posts: 560
Registered: ‎09-29-2012
0

Re: Multiple credit cards...


scarzy wrote:

When I first started off obtaining credit, I got various credit cards like Citi's, DinerClub's, Credit union's Visa/MC,

and multiples accounts from different stores. During that time, I only applied because I wanted to see

how many cards I could "score" for my wallet. It was more so for "bragging rights." Due to my destructive behavior and my hours getting cut,

I'd filed for Ch7. 

 

Now, I am not pointing the finger at anyone, I just want to understand and learn. I see people re-establishing their credit, and that's great.

They go applying once they are ready,and slowly but surely, they will have 6-10 tradelines on their portfolio. Most will just use a few, and PIF always.

 

So, what are the reason(s) to have that many open lines?? Has the "bragging rights" haven't changed??

 

I'm just curious

 

 

 

 


I not sure i could comment on what motivates others to get several CCs.  I mean there are many ppl on here who have upwards of 30+ CCs.  (And that's just CCs.)

 

 

I would say, however, that you seem to have learned a lesson since filling for BK.  That only applying for credit that you need is better than applying for credit that you want.

 

 

 

Blogger
HiLine
Posts: 3,162
Registered: ‎10-19-2012
0

Re: Multiple credit cards...


ccnewcc wrote:


I not sure i could comment on what motivates others to get several CCs.  I mean there are many ppl on here who have upwards of 30+ CCs.  (And that's just CCs.)

 

 

 


Mostly bonus chasers IMO

 

Valued Contributor
Repo-ed
Posts: 2,960
Registered: ‎02-09-2012
0

Re: Multiple credit cards...

more = less
less = more

5/2012: 560 credit scores across the board and $500 secured CC
12/2014: 750+ scores across the board and $80k in revolving credit

Get those baddies removed!!!
Moderator Emeritus
tinuviel
Posts: 4,875
Registered: ‎11-02-2010
0

Re: Multiple credit cards...

From my perspective, I look upon my credit cards as a set of tools. I can use cash to pay for most purchases, but if I can get rewards with a credit card, then why should I turn down free money? So, I selected my cards based upon the rewards that matter to me, in the categories that best match my spending habits. Since there is no one card that is better/best in each category, I have multiple cards that get used for different types of purchases. Examples:

 

BoA 1-2-3 cash rewards: Gas and groceries, unless Discover is offering a 5% quarterly bonus for that category. An added plus -- this particular card is an affinity card that benefits my alumni association; they receive a small fraction of a percent from every purchase.

 

Discover: Quarterly bonus categories. I'm using the online shopping bonus for holiday spending, which is especially good when stacked with ShopDiscover.

 

American Express Green: Most spending that doesn't fall under the above, and saving up points for some light traveling next year. I'm not a heavy traveler, so I don't really need a card that's focused too strongly in this area. But, this card excels at statement credits, which translates to cash that stays in my pocket: Facebook and Twitter deals, and tomorrow, Small Business Saturday. And, it's backdated to 1987 -- a real boon to my AAoA!!!

 

Citi Diamond Preferred: I got this card for the long 0% intro APR, in case of emergencies. I'm getting 18 months on it, and I have had occasion to use it.

 

Dillard's Amex and JC Penney: Store discounts. I've been less impressed with JC Penney as a rewards card since they did away with their coupons, but I still do have it and use it. The CLs on both card increased dramatically since opening them, so they've both helped to add padding to my util.

 

Kay Jewelers: I got this card while I was rebuilding, strictly because I read that it was an easy approval and they tended to give out high limits; I was looking to pad my util while paying off old debt. My old debt is completely paid off, but I still have the card. With a $5100 limit and no fee, there's no reason to close it. A small purchase every once in a while -- such as a watch battery or jewelry repair -- is sufficient to keep the card in use.

 

Capital One No Hassle Cash Back MC: This was my first rewards card, and was part of my rebuild. With a $750 CL, I don't have much need for it at this point. But, my DD has never had a credit card before and needs to build her credit profile, so I put her on as an AU and am letting her use the card. She's using it strictly for necessities -- mostly gas and groceries -- and reimbursing me; I pay the card directly. The cash back from her purchases more than cover the $39 AF, so it's a win-win for both of us.

 

And finally, my Capital One Visa Platinum: I've had this card since 1999. No rewards, but a $6400 CL. Since it's my oldest open card (other than through the magic of Amex backdating), it will be staying open.

 

So, a variety of cards sit in my wallet (or sockdrawer). But, each one has a particular job to do and I'm happy with how each one is performing. It's not about bragging rights, but rather having the right tool to do a particular job.


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Regular Contributor
scarzy
Posts: 230
Registered: ‎04-08-2008
0

Re: Multiple credit cards...


tinuviel wrote:

From my perspective, I look upon my credit cards as a set of tools. I can use cash to pay for most purchases, but if I can get rewards with a credit card, then why should I turn down free money? So, I selected my cards based upon the rewards that matter to me, in the categories that best match my spending habits. Since there is no one card that is better/best in each category, I have multiple cards that get used for different types of purchases. Examples:

 

BoA 1-2-3 cash rewards: Gas and groceries, unless Discover is offering a 5% quarterly bonus for that category. An added plus -- this particular card is an affinity card that benefits my alumni association; they receive a small fraction of a percent from every purchase.

 

Discover: Quarterly bonus categories. I'm using the online shopping bonus for holiday spending, which is especially good when stacked with ShopDiscover.

 

American Express Green: Most spending that doesn't fall under the above, and saving up points for some light traveling next year. I'm not a heavy traveler, so I don't really need a card that's focused too strongly in this area. But, this card excels at statement credits, which translates to cash that stays in my pocket: Facebook and Twitter deals, and tomorrow, Small Business Saturday. And, it's backdated to 1987 -- a real boon to my AAoA!!!

 

Citi Diamond Preferred: I got this card for the long 0% intro APR, in case of emergencies. I'm getting 18 months on it, and I have had occasion to use it.

 

Dillard's Amex and JC Penney: Store discounts. I've been less impressed with JC Penney as a rewards card since they did away with their coupons, but I still do have it and use it. The CLs on both card increased dramatically since opening them, so they've both helped to add padding to my util.

 

Kay Jewelers: I got this card while I was rebuilding, strictly because I read that it was an easy approval and they tended to give out high limits; I was looking to pad my util while paying off old debt. My old debt is completely paid off, but I still have the card. With a $5100 limit and no fee, there's no reason to close it. A small purchase every once in a while -- such as a watch battery or jewelry repair -- is sufficient to keep the card in use.

 

Capital One No Hassle Cash Back MC: This was my first rewards card, and was part of my rebuild. With a $750 CL, I don't have much need for it at this point. But, my DD has never had a credit card before and needs to build her credit profile, so I put her on as an AU and am letting her use the card. She's using it strictly for necessities -- mostly gas and groceries -- and reimbursing me; I pay the card directly. The cash back from her purchases more than cover the $39 AF, so it's a win-win for both of us.

 

And finally, my Capital One Visa Platinum: I've had this card since 1999. No rewards, but a $6400 CL. Since it's my oldest open card (other than through the magic of Amex backdating), it will be staying open.

 

So, a variety of cards sit in my wallet (or sockdrawer). But, each one has a particular job to do and I'm happy with how each one is performing. It's not about bragging rights, but rather having the right tool to do a particular job.


 

 

From your examples, I can see now the needs for various cards. Each has its purpose! 

starting EQ FICO : 526 current EQ FICO : 640 starting TU FICO: 538 current TU FICO : 656

My wallet: Capital One cash rewards $1,300- ~ NFCU signature cash rewards $5,000- ~ NFCU nRewards $5,000- ~ NFCU LOC $1,000- ~ Target $200- ~ Kohl's $300- ~ Walmart $800- ~ Amazon $900- ~ Updated 6/2013

Discharged Ch7 Nov.16, 2012

Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Multiple credit cards...


scarzy wrote:


 

 

From your examples, I can see now the needs for various cards. Each has its purpose! 


 I think in many cases, more "each card might have a purpose at the time it was opened", and while there is room to "clean up", most people don't bother without a  pressing need, such as an AF.

 

So earlier on in your credit life, you might get a card that gives you say 2% off at brand X gas, and 1% off other purchases.   Later on you may get a BCP (3% off all brands of gas + other benefits) or Penfed Plat Rewards (5% of all gas and other benefits).  Now your original card really doesn't have a purpose unless you really need the CL (but early cards are likely to have smaller CLs anyway), but there is no real need to do anything, unless again it has an AF.  Similar things can occur with say airline/hotel related cards where the airline or hotel no longer meets your travel needs.  (There is more likely to be AF in these cases but not always)

 

So that's another way that people get a lot of cards, for better and better rewards, usually without getting rid of earlier cards.

Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: Multiple credit cards...

[ Edited ]

My cards

 

American Express Blue Cash Preferred   6% groceries 3% department stores 3% gas

 

Chase Freedom 5% categories

 

(combination of Freedom and Amex Blue also gives me 4.625% average for gas)

 

Chase Sapphire a portal for my Freedom points to aquire 25% bonus for travel (6.25% if used for travel) also zero foreign transaction fees + 2.67 points for restaurants and hotels and flights. 1.337 points for everything else (highest base rewards card in my possession. besides it's metal and it's sexy oh yea!)

 

Citi Forward  5% for Amazon  5% for dining

 

Navy Federal low interest high limit credit card for oh shiet cases for balance transfers and convience checks (which helped me get in on a cash only offer to buy a house, I was short 15k)

 

Walmart card  Free TU08 Fico score and I don't own a Mastercard for Sams Club =(

 

 

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

 

Kays first unsecured rebuilder card

 

Orchard Secured Credit Card one of the first rebuilder card

 

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

 

Wishlist US Bank Cash+ 5% billpay and 5% electronic stores   (would have restaurants but I have Citi Forward)  and since it's flexible choosable reward categories I can jump from one to the next. Since I'm buying a house I can opt for 5% home improvement and home furnishing etc.

 

 


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758

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