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Registered: ‎09-14-2013
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Re: Why does everyone apply and have so many cards?

[ Edited ]

Total utilization is much more important than what you are doing card-by-card, although that is somewhat important as well (using your example, if you were to apply for a CLI on the card which is maxed out, they are likely to deny it even if you are at 10% overall utilization). 


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Re: Why does everyone apply and have so many cards?


RockySC wrote:

Mannymal wrote:

The more credit available you have, the lower your utilization, and thus higher credit score. 

 

I personally have six credit cards, and two store cards. I have that many simply  because I used them for their individual perks. But I may close one or two. 

 

 


Wait a second, now even I'm confused. When they take into account your utilization they count the credit line vs. balance of all cards combined? Does that mean if you have a $0 balance on all cards but one is almost maxed out that you could still have a more than acceptable utilization? I thought the utilization was on a card by card basis.


If i am learning this properly, i believe FICO scores your utilization on an individual card basis AND on your cards combined together.

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Re: Why does everyone apply and have so many cards?

[ Edited ]

soccer5 wrote:

RockySC wrote:

Mannymal wrote:

The more credit available you have, the lower your utilization, and thus higher credit score. 

 

I personally have six credit cards, and two store cards. I have that many simply  because I used them for their individual perks. But I may close one or two. 

 

 


Wait a second, now even I'm confused. When they take into account your utilization they count the credit line vs. balance of all cards combined? Does that mean if you have a $0 balance on all cards but one is almost maxed out that you could still have a more than acceptable utilization? I thought the utilization was on a card by card basis.


If i am learning this properly, i believe FICO scores your utilization on an individual card basis AND on your cards combined together.


I waited to see who had the right answer CORRECT 

Fico scores each card UTL along with total UTL

Example based upon what was stated in the thread you can have high limits thus lowering your UTL but the one card that is reporting as maxed out will cause a Fico scoring ding ...Thus losing points 

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Re: Why does everyone apply and have so many cards?

[ Edited ]

RockySC wrote:

Mannymal wrote:

The more credit available you have, the lower your utilization, and thus higher credit score. 

 

I personally have six credit cards, and two store cards. I have that many simply  because I used them for their individual perks. But I may close one or two. 

 

 

 

 


Wait a second, now even I'm confused. When they take into account your utilization they count the credit line vs. balance of all cards combined? Does that mean if you have a $0 balance on all cards but one is almost maxed out that you could still have a more than acceptable utilization? I thought the utilization was on a card by card basis.


you get graded on both individual card util and overall util. your second question above...it will depend on how much available credit you have. lets say you have 4 cc's at $500, $500, $1k, and $2k. given your scenario above, if the first 3 cards were at 0 but your $2k almost maxed out, your overall util would still be almost 50%. but if your cc's have decent limits, then your scenarionmay work.

 

and to OP....part of obtaining multiple cc's (aka app sprees) is the thrill of the hunt! Smiley Wink

 

 

edit:

degnemit...MJ beat me to it. hate using portables to post on the boards...fingers too big for on-screen keyboard lol

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Re: Why does everyone apply and have so many cards?

Cool, thanks. So long story short, it's still best to always keep your util low on each card no matter what for the most part.

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Re: Why does everyone apply and have so many cards?

red259,

 

You are planning on combining your card's credit line from the same bank before you closing out some cards...right!?

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Re: Why does everyone apply and have so many cards?


TravellingNomad wrote:

RockySC wrote:

Mannymal wrote:

The more credit available you have, the lower your utilization, and thus higher credit score. 

 

I personally have six credit cards, and two store cards. I have that many simply  because I used them for their individual perks. But I may close one or two. 

 

 

 

 


Wait a second, now even I'm confused. When they take into account your utilization they count the credit line vs. balance of all cards combined? Does that mean if you have a $0 balance on all cards but one is almost maxed out that you could still have a more than acceptable utilization? I thought the utilization was on a card by card basis.


you get graded on both individual card util and overall util. your second question above...it will depend on how much available credit you have. lets say you have 4 cc's at $500, $500, $1k, and $2k. given your scenario above, if the first 3 cards were at 0 but your $2k almost maxed out, your overall util would still be almost 50%. but if your cc's have decent limits, then your scenarionmay work.

 

and to OP....part of obtaining multiple cc's (aka app sprees) is the thrill of the hunt! Smiley Wink

 

 

edit:

degnemit...MJ beat me to it. hate using portables to post on the boards...fingers too big for on-screen keyboard lol


But you still had the right answer WTG

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Re: Why does everyone apply and have so many cards?


RockySC wrote:

Mannymal wrote:

The more credit available you have, the lower your utilization, and thus higher credit score. 

 

I personally have six credit cards, and two store cards. I have that many simply  because I used them for their individual perks. But I may close one or two. 

 

 


Wait a second, now even I'm confused. When they take into account your utilization they count the credit line vs. balance of all cards combined? Does that mean if you have a $0 balance on all cards but one is almost maxed out that you could still have a more than acceptable utilization? I thought the utilization was on a card by card basis.


Yes. Due to the other card limits my overal util is 4% but with a 90% util on Discover due to its limit.  I do not want to imagine how this would impact if I only had two cards with similar limit to Discover Smiley Tongue .. for me no punishment score wise with this high util on a single card.

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Re: Why does everyone apply and have so many cards?


rwt wrote:

I am new to the site and I want to say thanks for the advice and help I have received so far. I have been reading threads and have been wondering why so many people apply for and have so many cards.


Mainly because of the following:  (1) I can; (2) rewards and sign up promos; and, (3) it's fun!  

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Re: Why does everyone apply and have so many cards?


Open123 wrote:

rwt wrote:

I am new to the site and I want to say thanks for the advice and help I have received so far. I have been reading threads and have been wondering why so many people apply for and have so many cards.


Mainly because of the following:  (1) I can; (2) rewards and sign up promos; and, (3) it's fun!  


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