Reply
New Contributor
otter69
Posts: 79
Registered: ‎09-14-2013
0

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). 


I don't do senior citizen activities like Bingo, needlepoint, shuffleboard, square dancing, and ABSOLUTELY NO GARDENING!
Regular Contributor
soccer5
Posts: 123
Registered: ‎08-21-2013
0

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.

Starting Score: EX 549 EQ 465 TU 477
Current Score: EX 714 EQ 681 TU 727 EX Fico (PSECU) 683 EQ Fico 676 (MyFico) TU Fico (WalMart) 701 as of 6/6/2014
Goal Score: 700's
Community Leader
Senior Contributor
myjourney
Posts: 26,659
Registered: ‎02-07-2013
0

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 

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/6/13


Established Contributor
TravellingNomad
Posts: 502
Registered: ‎04-26-2011
0

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! :smileywink:

 

 

edit:

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

Established Member
RockySC
Posts: 72
Registered: ‎01-13-2014
0

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.

Contributor
onthemove
Posts: 77
Registered: ‎04-18-2007
0

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!?

Community Leader
Senior Contributor
myjourney
Posts: 26,659
Registered: ‎02-07-2013
0

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! :smileywink:

 

 

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

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/6/13


Valued Contributor
lg8302ch
Posts: 2,975
Registered: ‎11-13-2012
0

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 :smileytongue: .. for me no punishment score wise with this high util on a single card.

FICO® EQ 800 (as of today) - TU 778 (10/28) * Fako EX 803 (11/02 - CS) * last app 06/01/14 * INQ last 2 yrs TU: 5, EX: 7, EQ: 7


Move the mouse over the cards for detailed view!..................................................................* Silver Spade Garden Club member *

Senior Contributor
Open123
Posts: 4,194
Registered: ‎02-23-2011
0

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!  

Valued Contributor
Swapmeet
Posts: 1,569
Registered: ‎11-10-2012
0

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!  


here here



My Wallet:
WalMart: ||15k|| USAA Platinum MC: ||26k|| BCE: ||9k|| Chase Freedom Siggy: ||10k|| Discover it: ||6.5k|| SG Visa: ||11k||
USAA World MC: ||23k|| US Bank Cash+ Siggy: ||7.5k|| Citi TYP World MC: ||12k|| Barclays Arrival World MC: ||13k||Citi Double Cash World MC ||25k||Sallie Mae World MC ||18.8k||Fico Scores (3 Fico Monitoring): EQ 751,TU 749, EX 743. Last app: 9-12-14 Sallie

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}