03-20-2013 09:54 AM
I don't mean to be rude or to sound terribly uninformed, but I can't figure out why so many people on this board have so many cards. I know some "collect" them: different banks, different features, a nice mix of rewards, etc. And I guess I get that--at least the rewards.
For rebuilding/building credit, though, isn't one or two enough if you use them responsibly, pif, and make sure you're at < 10% when the statements cut? I'm just confused when I see peoples' signatures and they have a ton of store cards with $300 credit limits and sub-600 credit. Is that only good because it helps keep your util rates down?
What are the fico-score benefits to having so many cards?
03-20-2013 10:08 AM
03-20-2013 10:10 AM - edited 03-20-2013 10:12 AM
Last year I opened many accounts because I only previously had two and wanted to build credit now while I am young. I think having and maintaining multiple trade lines as opposed to just one or two looks better on a manual review. I had high 700s when I only had the two cards, so I don't know if there is much of a score benefit to having many cards.
The cards I do have most have decent limits that get used from time to time depending on the rewards or if I want 30 of float for business use. I only have two store cards with a 3000 and 10000 limit so they are worth it. I guess when people have ruined their credit they will take what they can get so multiple 300 limits may be a huge thing for them.
A few of them are for rewards, the others are mostly to increase my available credit and my score.
And, I just like to apply.
Did the limit on that PNC card start at 7500 or did you ask for an increase on it? I was going to request one from them from 5200 but I couldn't find any information about what they like to see before granting one.
03-20-2013 10:12 AM - edited 03-20-2013 10:14 AM
I have a lot of cards, but don't believe they are "too many" if you know how to manage them well. I keep everything in Quicken and manage them quite proficiently that way. I rotate monthly, or depending on the type of usage/rewards. I have a good mixture because of the rewards and/or discounts I can get from using each one, as well as it keeps the utilization down - though not a big factor. I've closed 7 accounts just this year, removing the subprime cards that Ive had over a decade, for some unknow reason to me. I PIF 95% of them, float a small balance *under 8%* on 2-3 monthly. I believe that you should be able to manage what you have, whether it is 2 cards or 30. If you can't manage them well, then you need to decrease the number of cards you have regardless of what that magical number is.
03-20-2013 10:14 AM - edited 03-20-2013 10:15 AM
Cause we are all NUTS!!
03-20-2013 10:17 AM
I have 12 active cards. Only 5 are ones I use. Total limits...110k
Paying down balances. Only owe on about 4.
03-20-2013 10:21 AM
Good question...Is it becasue it adds a little color and splash to the signature line?
03-20-2013 10:25 AM
I've read that 3-5 is optimal for FICO scoring...more than 6 may actually hurt your score. There are a couple benefits I see from having a lot of cards. If you are just starting out and getting low limits then having a lot of cards can help with utilization. Adding new cards in the future won't hurt your AAoA as much since you have a lot of older accounts to buffer the age.