Reducing credit cards, a new adventure

[AverageJoesCredit]

Kdm and ltl your points are valid. In my case i consider growing as to just get to a point on a card where as were i to use the card, especially larger purchases, i could be at a comforable level and not be overutilized at say like 50 or 60% in example. In case of Discover since the cli are normally sp, i see no problem in trying to get to a comfortable level. Large purchases on small limits isnt ideal wherher you make alot of money or dont.

As for rewards i feel ya on that. Having so many cards and trying to figure which card to use for the rewards can be frustrating and in my case my spend is limited so im embarking on the less is more. Eventually everyone will reach a point where they reevaluate how they are using their credit cards and must make the best decision for themselves.

[longtimelurker]

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@AverageJoesCredit wrote:
Kdm and ltl your points are valid. In my case i consider growing as to just get to a point on a card where as were i to use the card, especially larger purchases, i could be at a comforable level and not be overutilized at say like 50 or 60% in example. In case of Discover since the cli are normally sp, i see no problem in trying to get to a comfortable level. Large purchases on small limits isnt ideal wherher you make alot of money or dont.

As for rewards i feel ya on that. Having so many cards and trying to figure which card to use for the rewards can be frustrating and in my case my spend is limited so im embarking on the less is more. Eventually everyone will reach a point where they reevaluate how they are using their credit cards and must make the best decision for themselves.

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Sure, getting the card to a comfortable level I can understand (even though I still don't buy util padding!), but my impression is that isn't the expectation for many people, who want the cards to continue to "grow", no matter the current limit and need...

[Anonymous]

I agree with AJC completely in wanting high limits as he just went through a weather crisis.  I was also involved with Irma and it affected my FICO score for almost 2 months because while all my accounts have autopay set for the minimum, me being trapped in the Caribbean for 4 extra days meant I couldn't PIF my cards I use normally, so my scores dropped 44 points during a period where I am actively seeking credit.

Keep in mind that I use my cards for all spend where it makes financial reward sense -- my typical spend may be $5000-$12000 a month and it varies significantly by season.  Because I have a lot of toy limits ($500, $2000, $2500, $3300), and because I use the rewards card that makes the most sense to me for cashback purposes, I run up against these limits constantly.  In an emergency situation, I won't rely on credit to live, but I could forsee running into the same issue I experienced with Irma that I may not get to a WiFi connection to PIF down to preferably utilization.

Had I had realistic limits of $20,000 on each card, my score would have barely been dinged at all -- but because I have toy limits, I was FICO-hurt for almost 2 months even though tho I had more than enough in the bank to cover a payment had I had a way to make a payment.

AJC probably had it a bit harsher because he was out of power and connectivity for weeks (or months?) so having small limits means even more aggravation in dealing with statement cut dates even if he was willing to pay it off.  In addition, if he made the choice to "live on credit" for 2-3 months, he still had to manage utilization just to reduce the risk of AA from lenders who don't want to see high utilization.

It drives me nuts that I have to play this game, and I definitely will chop out low limits once I start earning useful limits again -- as long as I can get similar cashback rewards from whoever I keep around.

[RadioRob]

Culling the heard is a natural part of the rebuilding process.  I still remember my old $500 CapOne card that started at $300 and got the 2 CLIs after making some on time payments, but nothing again afterwards.  

Once I was moving forward with Alliant and NFCU, it was time to part ways with CapOne for awhile until something more deserving from them came along.  

My long term strategy is almost in place.  For variety and so that I'm not trapped with one bank, I want a relationship with multiple issuers.

My list now includes:

NFCU (primary banking relationship, CC, and more)

Alliant

Citi

Chase

Discover

Amex

CapOne (it once again may be on the chopping block within the next year)

I have a plan/goal for each card, be it a use for specific rewards, able to carry a balance on it should I want to actually finance something at $0 or a low rate, etc.  

It's good for people to look at their credit portfolio and ask if what they have today is what is going to help them not only today/tomorrow, but also next quarter and next year.  By thinking about the future now, you have an easier time making decisions about what is best to support yourself.

[AverageJoesCredit]

Lol, the curse of being on myFico where we all share our wants needs and haves in credit. I will admit the cli bug caught me up in its web. As LTL points out alot, most of the time we do and can outreach, not sure thats the right word, what we actually need or use. ABCD, if you think i had it bad, Dad had at&t and couldnt get on to pay his bills properly for well over a month. Im pleased that i was able to get as far as i did credit wise and i owe alot to this board for helping me push for more than i ever would have pushed for living in the outside world.

I give props to all those seeking bigger limits but am also grateful for voices like Kdm and longtime lurker who give the other side of things so there is a great balance here . Its up to each of us to take away from all this advise and experiences what will serve our profiles best. Perhaps me reducing unneeded credit limits will open other doors credit wise so as in life where one door closes another opens.

I think with 2 more closings i should be good til Feb where ill have to AF cards coming up on their 1st af due, Amex green and WF Amex.

[AverageJoesCredit]

Good for you RadioRob. I too want to keep diversity . I have to make a decesion on my Walmart card in the next couple months as since i have Sams snd can use it at Wally, do i really need both?. Amazing what time does on your perspective

[Adkins]

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@AverageJoesCredit wrote:
Lol, the curse of being on myFico where we all share our wants needs and haves in credit. I will admit the cli bug caught me up in its web. As LTL points out alot, most of the time we do and can outreach, not sure thats the right word, what we actually need or use. ABCD, if you think i had it bad, Dad had at&t and couldnt get on to pay his bills properly for well over a month. Im pleased that i was able to get as far as i did credit wise and i owe alot to this board for helping me push for more than i ever would have pushed for living in the outside world.

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Heh. When I reconned my PayPal card, looking for $5K instead of the $2K I got, I told the rep I wasn't looking for some crazy high credit line, I just wanted enough to keep my utilization under 40% if I needed to make a large purchase. He actually asked me why not! 

[AverageJoesCredit]

No shame in that game Adkins I know its better to have room to be able to put on a big purchase than to have to try put it on 3 different cards lol. Always do what makes you comfortable

[Anonymous]

AJC, with a Walmart card I know they advertise the 3-2-1 cash back but does Sams give cash back 3-2-1 for Walmart purchase.?I know our Sams card we get money back 1 X year so it's hard to track and we don't use this much

[AverageJoesCredit]

Not sure Backwoods. I dont think so But i do like the cash back feature where you can get up to $100 at the register if you need some extra cash. Lol, i actually just got my new chipped Wally card this week This will probably make the cut but ill reevaluate as i progress through 2018.