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Valued Member
rwt
Posts: 102
Registered: ‎01-14-2014

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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Valued Contributor
Swapmeet
Posts: 1,312
Registered: ‎11-10-2012

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

[ Edited ]

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!" 

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Senior Contributor
Open123
Posts: 3,968
Registered: ‎02-23-2011

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.

Valued Contributor
-Wade-
Posts: 11,531
Registered: ‎08-13-2013

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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Valued Member
rwt
Posts: 102
Registered: ‎01-14-2014

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"...:smileywink: thus being the obvious. 

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Frequent Contributor
ForMyBiz
Posts: 276
Registered: ‎08-19-2013

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"...:smileywink: 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.
Valued Contributor
Swapmeet
Posts: 1,312
Registered: ‎11-10-2012

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"...:smileywink: 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: ||13.5k|| USAA Platinum MC: ||13k|| Amex Delta Gold: ||2k||; BCE: ||9k|| Chase Freedom Siggy: ||10k||
Discover it: ||6.5k|| SG Visa: ||11k|| USAA World MC: ||13k|| US Bank Cash+ Siggy: ||5k|| Citi TYP World MC: ||10.5k||
Barlays Arrival World MC: ||10k||
Fico Scores: EQ 760 (SW),TU 757 (Walmart), EX 738 (myfico) Last app: Arrival World MC 2-1-14
Senior Contributor
Open123
Posts: 3,968
Registered: ‎02-23-2011

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"...:smileywink: 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.

Valued Contributor
Repo-ed
Posts: 2,953
Registered: ‎02-09-2012

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


rwt wrote:

Thankyou, I was just curious:smileyhappy: 


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...


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