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Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012
0

Re: Why so many cards?

+1 to nuts!

 

I also like establishing lines now, it will give them time to age and build my AAoA. Later on if I have an actual need for a high FICO, my AAoA will be good and stable even if I need a few new accounts.  

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Frequent Contributor
isoldmyatlas
Posts: 341
Registered: ‎04-28-2012
0

Re: Why so many cards?

For me, it's a matter of having a long term plan. This time last year, I had no credit history. In 5 years I want to start the mortgage application process, so this past year I set a goal of opening a bunch of solid accounts that I could keep open long term and get rewards from. I set out to have a mix of cash back, airline, and hotel cards. So while my AAoA is really weak right now, in 5 years I will have scores that can get me some of the best mortgage rates. The only card I opened knowing I would close it quickly was the Amex Green, since it would create a backdating year for me. Once the free year is up, Green is getting closed.
TU: 757 (9/14/14) | EQ: 778 (10/7/14) | EX: 770 (10/7/14)

Cap1 Quicksilver, $4,750 (4/2012); Discover IT, $6,000 (10/2012); Chase Amazon Rewards, $7,600 (10/2012); AMEX Hilton HHonors, $15,000 (11/2012); AMEX Blue Cash Everyday, $10,000 (01/2013); Barclaycard Arrival+, $10,000 (07/13); Chase Hyatt, $7,000 (09/13)
New Contributor
Simplyjays
Posts: 61
Registered: ‎02-22-2013
0

Re: Why so many cards?

youuu the mann! you spoke for many of us includeing me lol

 

Inquires= 0 as of 3/20/2013 till 4/1/2014
-Amex green NPSL -Discover it 1k -Capital One 1.25k -Walmart 700.00
-JDCU 500.00 -Credit one bank 400.00 (credit builder card =) -Babys R-us 200.00? =(
TU=649
EQ=632 as of 3/20/2013
Valued Contributor
injustifiiable
Posts: 1,865
Registered: ‎03-30-2012
0

Re: Why so many cards?

[ Edited ]

I have 10 cards, 5 Bankcards and 5 store cards.

 

The bankcards I have have CL's under $1K. The store cards I have can easily grow to over $1K in time. The goal is to get 2 or 3 major bankcards with CL's over $1K, and when that happens I'll close the lower limit cards (mainly Capital One and CreditOne...lol)

 

I started rebuilding around this time last year...I had no recent revolving history whatsoever and had just gotten a $300 CL Household card, and I've gained $3,500+ in credit over a year, which is more than I had when my credit was good back when I was 18-19.

Scores 6/17/2014: TU FICO: 643 | EQ FICO: 675 | EX AMEX FICO: 666

In my new wallet: American Express Premier Rewards Gold EMV: NPSL | BankAmericard Cash Rewards Visa EMV: $2500 | BarclayCard Rewards Average: $2000 | Travelocity Rewards AMEX: $1050 | Discover IT: $1500 | Amazon Rewards Visa: $1500 | Sportsman's Guide Visa: $3000 | Capital One QuicksilverOne MasterCard: $1250 | Target: $400 | J.Crew $5950
Established Contributor
TiggerDat
Posts: 1,038
Registered: ‎10-15-2011
0

Re: Why so many cards?


bluedog1 wrote:

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.


I know about the 3-4 rule, but how does more than 6 hurt you?  Is it because of the default risk associated with so many?  It doesn't seem to matter so much with those that have them for getting new ones.  I admit I have too many and just enough for what I am doing.  My two sisters have filed bankruptcy so I have some of them loaned out to them.  One sister just has a balance on the account and not the card or number and she simply pays it to me every month.  I get to keep my cash free and she pays interest.  The other simply was overburdened by debt and makes good money, so she actually has the cards.  She uses them and pays on them every month.  I apply the rewards she gets on them to lower her debt on the cards.  (I am training her very well on this benefit.)  Even if she can't pay in full each month I pay it in full for her and I get the money shortly anyway.  (I know she is good for it.)  I reserve the best rewards cards for myself though!

 

So yeah I also wonder in some way and know that I have more than I need.  I just have a plan which so far has not hurt my score, only improved it.  It keeps the util low, it shows multiple accounts managed well, it signals to others higher limits as I get new cards, and it gets my foot in the door with the best lenders.  If there is a negative aspect it is being offset by the positives.  However, I do plan on closing one account in the near future!  I am about 4 months from doing so if all goes well!  Once I get to about $30K or an Amex card, then Merrick is history.  This will be a sad day in my life as I actually absolutely love them as a company, but the annual fee and security are a bother to me.  I simply wish they would offer upper tier cards and PC me to one of them after all it has been over 5 years I have had that card.  I think I have proven to them my intent.



Rethink every purchase you make, before you make it. Use the card with the best rewards. Pay in full each month. Redeem rewards often. Use the cards online shopping for more discounts. Smile, knowing that being thrifty allows you to actually get more out of the same amount of money!
Senior Contributor
Open123
Posts: 4,155
Registered: ‎02-23-2011
0

Re: Why so many cards?

Mainly for sign up bonuses.

 

During a period of a couple of years, the best way to maximize rewards was use one's spend for sign up bonuses, if one's credit report could withstand it.  Now, that the sign ups are drying up, I'll settle down with around 4 cards.

 

Don't really see any compelling reason to have more.

Regular Contributor
bluedog1
Posts: 120
Registered: ‎03-14-2013
0

Re: Why so many cards?

[ Edited ]

bernhardtra wrote:

bluedog1 wrote:

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.


I know about the 3-4 rule, but how does more than 6 hurt you?  Is it because of the default risk associated with so many?


I should have worded it better: having a lot of open tradelines doesn't hurt your score per se but it can come off as having a higher default risk especially if there is a lot of available credit. This is probably irrelevant when applying for credit cards but comes into play when you're trying to get a mortgage.

Established Contributor
TiggerDat
Posts: 1,038
Registered: ‎10-15-2011
0

Re: Why so many cards?


bluedog1 wrote:

bernhardtra wrote:

bluedog1 wrote:

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.


I know about the 3-4 rule, but how does more than 6 hurt you?  Is it because of the default risk associated with so many?


I should have worded it better: having a lot of open tradelines doesn't hurt your score per se but it can come off as having a higher default risk especially if there is a lot of available credit. This is probably irrelevant when applying for credit cards but comes into play when you're trying to get a mortgage.


I will keep that in mind!  I plan on starting the closing process on the worst cards that I have after I get the Amex!  For the time being though I will simply garden what I have!  I have no need for any more cards, I only want the Amex as the reward for getting to top of the mountain!  The trophy of cards so so to speak.  At some point then there must be a new trophy!  (I think I just summed up in some ways the rationale some of us have, a little twist here and there and it makes sense.  Some people see the trophy as just having many.  Others see the trophy in the types of cards.  Some see the trophy as in the affect it has on their score.)



Rethink every purchase you make, before you make it. Use the card with the best rewards. Pay in full each month. Redeem rewards often. Use the cards online shopping for more discounts. Smile, knowing that being thrifty allows you to actually get more out of the same amount of money!
Established Member
waihao0405
Posts: 32
Registered: ‎02-21-2013
0

Re: Why so many cards?

i think the more credit account you have mean the more bank is willing to grant you credit.. it is good for ur credit history. i read that story somewhere online..

Blogger
HiLine
Posts: 2,946
Registered: ‎10-19-2012
0

Re: Why so many cards?


waihao0405 wrote:

i think the more credit account you have mean the more bank is willing to grant you credit.. it is good for ur credit history. i read that story somewhere online..


Only up to a certain point. If you have too many cards with too much available credit that will raise a red flag.

 


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