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So I've been reading on here how people have 8, 10, 20 cards...what is the advantage of that?
I have 4 that I use:
PenFed - gas, personal use $9.5k CL
USAA MC - joint expenses, $24k CL
USAA Amex - bills, $14k CL
Victoria's Secret - their stuff, $650 CL
So why do people have so many more? Is it because the limits are much lower than mine? What is the advantage of having so many store cards? We shop at Express, Home Depot, Target, Walmart a lot - should I get their cards? Would they give me so much more in rewards or something? Should we get an AMEX card as everyone seems to love them (beyond the USAA one)?
Isn't it harder to keep track of all those cards? Do y'all spend a lot more than us? (We spend less than $1,500 a month, usually much less, on CC)
Just curious to hear from people why they want to app for so many and have so many cards... thanks!
@Peach8321 wrote:So I've been reading on here how people have 8, 10, 20 cards...what is the advantage of that?
I have 4 that I use:
PenFed - gas, personal use $9.5k CL
USAA MC - joint expenses, $24k CL
USAA Amex - bills, $14k CL
Victoria's Secret - their stuff, $650 CL
So why do people have so many more? Is it because the limits are much lower than mine? What is the advantage of having so many store cards? We shop at Express, Home Depot, Target, Walmart a lot - should I get their cards? Would they give me so much more in rewards or something? Should we get an AMEX card as everyone seems to love them (beyond the USAA one)?
Isn't it harder to keep track of all those cards? Do y'all spend a lot more than us? (We spend less than $1,500 a month, usually much less, on CC)
Just curious to hear from people why they want to app for so many and have so many cards... thanks!
I personally have multiple cards for multiple reasons. I realized about a year ago when I had only one low limit card for emergencies and used my debit card for everything instead, that potential creditors saw that not as being financially responsible but as having a lack of experience managing credit. I had just purchased a home and had successfully paid off two auto loans in the past, and it seemed silly and a little insulting to me when I was denied by Citi, Discover and PenFed for lack of experience, but in order to improve my credit profile and benefit from it, I started applying for cards with rewards.
In addition to rewards, boosting my credit profile and having available credit for emergencies (big or small), it shows potential creditors that I can manage credit successfully and I have more options that will allow me to benefit from using credit, and not the other way around. Almost every card I have offers me reward benefits for my normal everyday purchases.
Another benefit of having multiple cards are special offers like no interest for x months on purchases at places like Home Depot, Best Buy, NewEgg, Macy's, etc. It's nice to be able to purchase a new dishwasher or sofa and pay it off over 6 or 12 months instead of paying cash upfront, and still not pay interest on the purchase. To me, that's the biggest reason for having a store card because the interest rates are normally incredibly high compared to bank credit cards.
However, and this is a big however, I think I've got a little too much overlap in rewards in some cases now and you're right, it can be difficult to manage a lot of cards. For example, I have two cards that have different reward benefits in different areas, but both give 3% cash back on gas, so I have to decide which to use when I get gas.
My advice is to only have what you need, and get the best cards for your situation. If you have 10 cards that all have different benefits that you will use and you can manage them all, great. If you can get what you need from 4 cards instead, even better. Every situation is different, so look at what you need in your life and go from there.
As for American Express, I happen to love them and the backdating on cards is great for your credit score. As you will see by looking at others' posts, not everyone loves AMEX
I'm with you on that one. I have 2 cards - a USAA MC $14k CL and a Discover More $2.5k CL. I use the Discover for the 5% categories and online through ShopDiscover for the rewards. I run everything else through the Mastercard for cash back. I can't imagine trying to keep track of a dozen cards with different due dates. My long term plan is to pick up an AmEx Blue Cash for the awesome cashback rewards and use that as my primary. I'll probably get a BofA Visa at some point just to round out the collection with one of each network. And if I go somewhere only certain cards are accepted I'll be set.
I'm sure there are various reasons people have a ton of cards, some good reasons and some not so good - I'll throw out a few and maybe people will chime in:
Obviously not everyone fits into these categories and there are certainly other reasons. I'm interested to see what others say.
I have a pretty fair amount of credit cards. I have 2 VISA, 2 Mastercard, and 7 store cards. While I am certainly not a credit expert, I can tel you that my FICO scores have been going up like a rocket in the last 6 months since I started to rebuild and have these many cards. Since Im just starting out rebuilding it gives me alot of positive trendlines, and no ones going to give me a high credit limit so having these helps increase the amount of availible credit I have. Both my EQ and TU have gone up just over 100 points since Feb.
So I can see the advantages of having many credit cards when you are starting out or trying to rebuild, as long as you do not spend more than you would without them.
@flyingmd wrote:
Personally, I think too many cards is an invitation to financial disaster.
I wouldn't say it's the number of cards as much as it is the amount of credit.
I had 8 but have slowly narrow it down to a total of 4 now.
1. Chase Freedom Visa
2. Chase Sapphire Preferred MC
3. Discover More
4. Amex SPG ------> currently PC to Blue Cash Everyday
@tntexans72 wrote:I had 8 but have slowly narrow it down to a total of 4 now.
1. Chase Freedom Visa
2. Chase Sapphire Preferred MC
3. Discover More
4. Amex SPG ------> currently PC to Blue Cash Everyday
I have 35 but soon to have 33. BBRZMC & Orchard Cards are getting the boot!
In the past I was a fan of having a 100 different credit cards but now I carry 1 Amex, 1 Visa!
However when it comes to Store cards you have to way out the benefits and how often you really shop at the store.
Home Depot - Offers 6-12 months interest free almost all the time, sometimes they offer you 10% off.
Target - I do my grocery shopping here and now with the 5% always and 10% on wine over 6 bottles... That all adds up VERY quickly!
Express - I get a coupon DAILY from them on my i-Phone, through e-mail, in store... seems a lot of times additional 15% with Express Card, they will allow you to break up your transaction into 20 if you wish to try to use a coupon for each transaction... Last time I spent just over $350, I saved over $250!!
Walmart - Allows you to get cash back at register and it won't cost you a cash advance, it goes in as your regular purchase just increasing your total... the biggest news lately is if you sign up for paperless statements they will give you your TU Fico monthly... otherwise I would say not as useful of a card as the others.