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Why does everyone apply and have so many cards?

New Contributor

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

I can see how it could be fun lol, in the future I would like to buy a house and I thought if someone had that many cards a mortgage company would see big credit limits and multiple cards as a risk, even if they are not even used the potential of racking up debt is there.

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Current Score: 595
Goal Score: 650


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Message 21 of 29
Valued Contributor

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


rwt wrote:

I can see how it could be fun lol, in the future I would like to buy a house and I thought if someone had that many cards a mortgage company would see big credit limits and multiple cards as a risk, even if they are not even used the potential of racking up debt is there.


Or, mortgage companies say "wow, lots of banks trust this guy with credit, and so should we. We need as many responsible borrowers as possible!" 



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
Message 22 of 29
Super Contributor

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


rwt wrote:

I can see how it could be fun lol, in the future I would like to buy a house and I thought if someone had that many cards a mortgage company would see big credit limits and multiple cards as a risk, even if they are not even used the potential of racking up debt is there.


Just lay off the inquiries (at least 6 months) before you apply for a mortgage to maximize your numerical score with low utility.  The number of cards and availalbe credit is irrelevant.  If anything, the more credit you have with low utility, the more you can distort reality and pay your mortgage should things go awry.

 

Never take credit suggestions from Mortgage bankers or brokers.

Message 23 of 29
Valued Contributor

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


Open123 wrote:

rwt wrote:

I can see how it could be fun lol, in the future I would like to buy a house and I thought if someone had that many cards a mortgage company would see big credit limits and multiple cards as a risk, even if they are not even used the potential of racking up debt is there.


Just lay off the inquiries (at least 6 months) before you apply for a mortgage to maximize your numerical score with low utility.  The number of cards and availalbe credit is irrelevant.  If anything, the more credit you have with low utility, the more you can distort reality and pay your mortgage should things go awry.

 

Never take credit suggestions from Mortgage bankers or brokers.


I agree no apps for 6 months or longer before a mortgage 

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Message 24 of 29
New Contributor

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

Thanks for all the help, so I guess what it boils down to when it comes the my original questions is merely the fact that "you can"...Smiley Wink thus being the obvious. 

Seedling:


Starting Score: 595
Current Score: 595
Goal Score: 650


Take the myFICO Fitness Challenge



Message 25 of 29
Frequent Contributor

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


rwt wrote:

Thanks for all the help, so I guess what it boils down to when it comes the my original questions is merely the fact that "you can"...Smiley Wink thus being the obvious. 


I don't think it's necessarily a "you can" principle.  Have you read: How to Master Your Mastercard ?

 

There's an important aspect that I didn't see in this thread, and that is the dilusion factor of poor remarks with positive accounts.  From the above mentioned thread:

 

"1) "Don't apply for credit unless you really need it" is a canard, in almost all cases. This is especially true if you have damaged credit. If you don't have a credit card, you need one. If you only have a couple, you need another one. Why? We all know that getting negative information removed from a credit file is difficult if the information is correct. We also know paying off old debts does little if anything to improve your credit rating. The only lever you have to pull to improve damaged credit is to dilute bad credit history and tradelines with good credit history and tradelines. A credit card is the easiest tradeline to get and manipulate to your advantage.

 
The only time I would hew to the "don't apply for credit" ideology is if my credit score is already good or excellent, I have several positive TLs already, and I'm about to apply for a mortgage. Yes, in that case, "if it ain't broke, don't fix it." Otherwise, you could use more good history."
 
 
If you already have A+ credit with no dings, then apping just to app is silly and could damage your score.  But if you're trying to build a strong credit profile, despite having some dings, then having lots of accounts can be a benefit.
Message 26 of 29
Valued Contributor

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


ForMyBiz wrote:

rwt wrote:

Thanks for all the help, so I guess what it boils down to when it comes the my original questions is merely the fact that "you can"...Smiley Wink thus being the obvious. 


I don't think it's necessarily a "you can" principle.  Have you read: How to Master Your Mastercard ?

 

There's an important aspect that I didn't see in this thread, and that is the dilusion factor of poor remarks with positive accounts.  From the above mentioned thread:

 

"1) "Don't apply for credit unless you really need it" is a canard, in almost all cases. This is especially true if you have damaged credit. If you don't have a credit card, you need one. If you only have a couple, you need another one. Why? We all know that getting negative information removed from a credit file is difficult if the information is correct. We also know paying off old debts does little if anything to improve your credit rating. The only lever you have to pull to improve damaged credit is to dilute bad credit history and tradelines with good credit history and tradelines. A credit card is the easiest tradeline to get and manipulate to your advantage.

 
The only time I would hew to the "don't apply for credit" ideology is if my credit score is already good or excellent, I have several positive TLs already, and I'm about to apply for a mortgage. Yes, in that case, "if it ain't broke, don't fix it." Otherwise, you could use more good history."
 
 
If you already have A+ credit with no dings, then apping just to app is silly and could damage your score.  But if you're trying to build a strong credit profile, despite having some dings, then having lots of accounts can be a benefit.

Also, to piggy-back on this post, it is all about spending efficiently. If I am going to buy gas no matter what, why not get 5% of that money back? People get the cards that reward them for using it. To cover all areas of my spending, I need several cards. I like to keep as much money as possible--this is one way that helps, but it requires several cards.



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
Message 27 of 29
Super Contributor

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


ForMyBiz wrote:

rwt wrote:

Thanks for all the help, so I guess what it boils down to when it comes the my original questions is merely the fact that "you can"...Smiley Wink thus being the obvious. 


I don't think it's necessarily a "you can" principle.  Have you read: How to Master Your Mastercard ?

 

There's an important aspect that I didn't see in this thread, and that is the dilusion factor of poor remarks with positive accounts.  From the above mentioned thread:

 

"1) "Don't apply for credit unless you really need it" is a canard, in almost all cases. This is especially true if you have damaged credit. If you don't have a credit card, you need one. If you only have a couple, you need another one. Why? We all know that getting negative information removed from a credit file is difficult if the information is correct. We also know paying off old debts does little if anything to improve your credit rating. The only lever you have to pull to improve damaged credit is to dilute bad credit history and tradelines with good credit history and tradelines. A credit card is the easiest tradeline to get and manipulate to your advantage.

 
The only time I would hew to the "don't apply for credit" ideology is if my credit score is already good or excellent, I have several positive TLs already, and I'm about to apply for a mortgage. Yes, in that case, "if it ain't broke, don't fix it." Otherwise, you could use more good history."
 
 
If you already have A+ credit with no dings, then apping just to app is silly and could damage your score.  But if you're trying to build a strong credit profile, despite having some dings, then having lots of accounts can be a benefit.

Right, spot on.  

 

The person with an 800 Fico with a thick file need not apply, since doing so with such a high score will plummit it down to 750, whereas the effect is much less pronounced for those around 720 - 750.

Message 28 of 29
Valued Contributor

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


rwt wrote:

Thankyou, I was just curiousSmiley Happy 


23 and counting!

 

(only 2 presently have a reporting balance of a combined $300)

 

But yes, I have so many because I chase sign-up bonuses for free travel and cash back.

 

I app amex each Jan. for max back dating.

 

It's all a game, once you've learned how to play.


Just respect the credit...

5/2012: 560 credit scores across the board
12/2014 750+
3/2017 780+
5/2017 800+
Message 29 of 29