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Established Member
Buckzball
Posts: 49
Registered: ‎05-08-2009
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Re: Too many cards

[ Edited ]

1 Amex, 1 Master, no gas or store cards.

 

Have to do plenty of other work  than checking cc statements  :smileyhappy:

Message Edited by Buckzball on 05-18-2009 05:42 AM
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: Too many cards


smallfry wrote:

clocktick wrote:

txjohn wrote:
 Gas and Store add nothing to you "mix" of credit. 

 

This is the exact opposite of what I've been reading on here the last few months.  Anyone else care to chime in on this one?

 


Having at least 1 store card or gas card helps the mix a little.


 

Okay small - I'm not arguing at all.  I am a data analyst by profession, and so I like data :smileyhappy:  How does a store and gas card help the "mix."  Please, somebody, explain how having a gas and store card helps FICO or credit in general?  If you were to have a Visa or MC in lieu of the store or gas, this is just as much mix and MORE helpful in general terms of useability and for LO review.

 

What I am trying to help people understand is this:  Store cards and gas cards do NOT help your score in any way, except that they count as revolving TL's and CL's.  However, if you could have a major in their place, this would actually be more useful in all terms, practical use and credit/FICO.

 

Scoring looks at "premium" and "bankcards" for the revolving mix.  It does not consider or give any "extra" consideration to a store or gas card.

 

My only point was that if you have the option of limiting your application to a few, and can get all major cards vs. a major, store and gas.....I would have all major cards.

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Too many cards

love2bamom's post has been moved to begin a new thread over on Understanding FICO Scoring titled Cards are paid, why are my scores so low?

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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Too many cards

txjohn has a nice debate going on this on a separate thread, and my two cents is that it doesn't make sense to me, but I've read enough reports by others of bigger score increases when the first retail card is added in to think that there must be something to it. And I understand that data analysts like to analyze data --I do the same thing, too --but it's smart to realize that we don't always have all the data needed.

I have problems with a lot of the stuff written in Credit Education --it could use a good re-editing IMO.

At any rate, back to the OP's original question: 8 cards is plenty. 4-5 cards is enough if judiciously chosen and allowed to grow. I have more than I like (11), but the obvious candidates for pruning are my older cards, unfortunately.

The more cards you have, the greater hassle it is in keeping track of them and feeding and watering them properly. My eventual goal is 8 or so.

I'd rather have my "lots of credit" resulting from higher CL's on better cards than umpty-zillion cards with $1K limits.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: Too many cards

[ Edited ]

love2bamom wrote:
I have never posted on  anything  like this and  do not know if i can even  get the reply, lol but I have a question.. I want to know why  if i have pai all my credit cards off and  now have only  1, why is my  fico score so low:? please can anyone help me?

 

You'll get better response if you start a new thread in "Understanding FICO scoring" section.  Also, you should post some info on what accounts you have, their credit limits, when opened, any lates, etc.  and what your FICO scores are.


edit: I must have been moving her post at the same time that you were replying to it! love2bamom, look up several posts above this one, and you'll see a link to your new post. Click on it --you already have some replies.
Message Edited by haulingthescoreup on 05-18-2009 07:33 AM

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Frequent Contributor
74king
Posts: 403
Registered: ‎04-08-2009
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Re: Too many cards


Tracy727 wrote:
if you are applying for the main things we need credit for - houses and cars - can it be potentially be a bad thing to have alot of credit cards. doesn;t it prove you need credit ? the same way fico scores are adjusted with apping/inquiries  can having a whole lot more cards then necessary mean that a person needs credit ? also doesn;t more cards leave the door open for more debt ? also doesn;t it take a long time just doing the bills monthly.

If you are responsible with your credit Tracy727 then you have nothing to worry about. If a person has 1000 cards with 10k lines on them but make a 100k in salary a year but never gets to far out there and is responsible with every card he has then i don't see a problem with him having that many cards because he or she is responsible being in control of that much credit.

 

Some lenders will be afraid of that in today's society, but if you remember back in the 90's all the way up to 2006 it wasn't uncommon to have massive amount of credit at your reach when your income didn't support you having that much credit. People Overspending it, Abusing it, not being responsible "circa 2009" and here we are the credit crunch.

 

All people had to do was be responsible with their credit and none of these things we are dealing with now would be happening. If you are a person that is responsible with money/finances and understand money's power and understand it shouldn't be abused/aka free money then you could have 10 million in credit lines and "guess what". You will still manage it effectively and responsibily.  Just my take on it :smileywink: Sorry for the rambling........

Equifax 787, TransUnion 793, Experian ? FAKO--> Who Cares
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74king
Posts: 403
Registered: ‎04-08-2009
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Re: Too many cards


txjohn wrote:

smallfry wrote:

Tracy727 wrote:
is there such a thing ? I see some people on this board list all there cards and their apping sprees - seems a little extreme to have 20 cards . Isn;t the goal to have a nice variety of cards, high limits and age ?? is 15 cards needed to do that - my goal are 2 gas cards, a discover , an amex, 1 mastercard, 1 visa and 2 store cards . thats 8 cards that I will let age. whats the point of 15-20 cards . trying to understand how that can be a good thing - please explain

8 cards is plenty. I might go with just 1 gas card and 1 store card and bump the Visa and MC up to 2 each tough.


Personally I see no value in gas cards or store cards in general.  You can buy gas and store items with a major card.  Gas and Store add nothing to you "mix" of credit.  They are just usually easier to get and higher limits when building than the majors sometimes.

 

I have 1 store card, and only because it is my oldest....Macys at almost 21 years.  I have no gas cards and don't plan to ever have one.  I do not plan to ever apply for any type of store card, I just do not see any value in them.


Exactly:smileywink:

Equifax 787, TransUnion 793, Experian ? FAKO--> Who Cares
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Too many cards


74king wrote:

Tracy727 wrote:
if you are applying for the main things we need credit for - houses and cars - can it be potentially be a bad thing to have alot of credit cards. doesn;t it prove you need credit ? the same way fico scores are adjusted with apping/inquiries  can having a whole lot more cards then necessary mean that a person needs credit ? also doesn;t more cards leave the door open for more debt ? also doesn;t it take a long time just doing the bills monthly.

If you are responsible with your credit Tracy727 then you have nothing to worry about. If a person has 1000 cards with 10k lines on them but make a 100k in salary a year but never gets to far out there and is responsible with every card he has then i don't see a problem with him having that many cards because he or she is responsible being in control of that much credit.

 

Some lenders will be afraid of that in today's society, but if you remember back in the 90's all the way up to 2006 it wasn't uncommon to have massive amount of credit at your reach when your income didn't support you having that much credit. People Overspending it, Abusing it, not being responsible "circa 2009" and here we are the credit crunch.

 

All people had to do was be responsible with their credit and none of these things we are dealing with now would be happening. If you are a person that is responsible with money/finances and understand money's power and understand it shouldn't be abused/aka free money then you could have 10 million in credit lines and "guess what". You will still manage it effectively and responsibily.  Just my take on it :smileywink: Sorry for the rambling........


 

It's almost a paradox.  If you "need" credit, then you probably shouldn't have too much.  But if you don't need it, and responsibly use it, then you shouldn't necessarily be restricted from access to more.  And the reason for this, is that many people think "need credit" is akin to "not enough income" to maintain the standard of living desired.

 

I agree with King that when somebody is responsible, lives within their means and makes strategic, responsible use of credit, the amount of credit is not the issue.  It is when credit is used in an inappropriate manner, without foresight, lacking fiscal responsibility on the "hope" that somehow it will all work out is when the problem arises.

 

I have more available credit than I could justify if I were going to go out and max it out on high living.  But when I use it for useful purposes, it is very reasonable to justify.  Business related travel, equipment purchases and other reimburseable expenses are useful purposes. 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Frequent Contributor
74king
Posts: 403
Registered: ‎04-08-2009
0

Re: Too many cards


txjohn wrote:

74king wrote:

Tracy727 wrote:
if you are applying for the main things we need credit for - houses and cars - can it be potentially be a bad thing to have alot of credit cards. doesn;t it prove you need credit ? the same way fico scores are adjusted with apping/inquiries  can having a whole lot more cards then necessary mean that a person needs credit ? also doesn;t more cards leave the door open for more debt ? also doesn;t it take a long time just doing the bills monthly.

If you are responsible with your credit Tracy727 then you have nothing to worry about. If a person has 1000 cards with 10k lines on them but make a 100k in salary a year but never gets to far out there and is responsible with every card he has then i don't see a problem with him having that many cards because he or she is responsible being in control of that much credit.

 

Some lenders will be afraid of that in today's society, but if you remember back in the 90's all the way up to 2006 it wasn't uncommon to have massive amount of credit at your reach when your income didn't support you having that much credit. People Overspending it, Abusing it, not being responsible "circa 2009" and here we are the credit crunch.

 

All people had to do was be responsible with their credit and none of these things we are dealing with now would be happening. If you are a person that is responsible with money/finances and understand money's power and understand it shouldn't be abused/aka free money then you could have 10 million in credit lines and "guess what". You will still manage it effectively and responsibily.  Just my take on it :smileywink: Sorry for the rambling........


 

It's almost a paradox.  If you "need" credit, then you probably shouldn't have too much.  But if you don't need it, and responsibly use it, then you shouldn't necessarily be restricted from access to more.  And the reason for this, is that many people think "need credit" is akin to "not enough income" to maintain the standard of living desired.

 

I agree with King that when somebody is responsible, lives within their means and makes strategic, responsible use of credit, the amount of credit is not the issue.  It is when credit is used in an inappropriate manner, without foresight, lacking fiscal responsibility on the "hope" that somehow it will all work out is when the problem arises.

 

I have more available credit than I could justify if I were going to go out and max it out on high living.  But when I use it for useful purposes, it is very reasonable to justify.  Business related travel, equipment purchases and other reimburseable expenses are useful purposes. 


Agreed:smileywink:

Equifax 787, TransUnion 793, Experian ? FAKO--> Who Cares
Contributor
CreditCardWhore
Posts: 76
Registered: ‎01-20-2009
0

Re: Too many cards

I have about 16, wife another 13.  If you have the income and the disipline more is better.  Tons of flexibility on rewards, credit limites and 0% offers and other specials. 

 

I always say - build up FICO, app for sign-up bonuses, better rewards or 0%, then rebuild FICO and do all over again.  I have had an average of $60,000, 0% money for the last year and have made another $600 in sign-up rewards with an optimal rewards structure over the same period. 

 

Work the system - don't let the system work you.


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