topic Why SO MANY Credit Cards? in Credit Cards

Why SO MANY Credit Cards?

Anonymous — Sun, 25 Oct 2015 04:58:30 GMT

Hey guys, I'm new to the forums but I notice a lot of people have 5+ credit cards, sometimes 10 and 20! On top of that, all of the cards have like $10k+ limits! O.O

My question is...why?! Is there a benefit to have that many cards? I have 3 (just got 2, had 1 for a while) and it's the scariest feeling ever (just not used to having this many, I'm sure I'll get used to it, haha), but sheesh if I had 10 cards I'd probably be overwhelmed!

So why?! Do you use all of the cards or do you just get them just because? I'm so confused haha...

Re: Why SO MANY Credit Cards?

Anonymous — Sun, 25 Oct 2015 05:06:34 GMT

@Anonymous wrote:
Hey guys, I'm new to the forums but I notice a lot of people have 5+ credit cards, sometimes 10 and 20! On top of that, all of the cards have like $10k+ limits! O.O

My question is...why?! Is there a benefit to have that many cards? I have 3 (just got 2, had 1 for a while) and it's the scariest feeling ever (just not used to having this many, I'm sure I'll get used to it, haha), but sheesh if I had 10 cards I'd probably be overwhelmed!

So why?! Do you use all of the cards or do you just get them just because? I'm so confused haha...

Well,not everyone has great credit. Sometimes they are transitioning from bad/fair to good/excellent. That is whats up with my profile. Plus, in the process you can get between $500 and $1200 for a sign on bonus...some of us here value 1 hard inquiry at least $400, if not more.

Some folks have higher income too.

I plan on slowly eliminating my buckle, commerce bank, credit one, and possibly capital one, we shall see.

Re: Why SO MANY Credit Cards?

OmarGB9 — Sun, 25 Oct 2015 05:10:07 GMT

Different reasons really. Some people like the benefits/perks/bonuses/rewards that come with each individual card. Some like to collect cards. They probably do use them all, but they rotate them. And he's keeping up with them would probably be a full time job in itself lol. I have 7, which is quite a bit compared to the average consumer, haha, but I can manage. I've created a spreadsheet to keep track of everything.

Re: Why SO MANY Credit Cards?

Anonymous — Sun, 25 Oct 2015 05:14:24 GMT

@OmarGB9 wrote:
Different reasons really. Some people like the benefits/perks/bonuses/rewards that come with each individual card. Some like to collect cards. They probably do use them all, but they rotate them. And he's keeping up with them would probably be a full time job in itself lol. I have 7, which is quite a bit compared to the average consumer, haha, but I can manage. I've created a spreadsheet to keep track of everything.

sigh. I have been procrastinating making my spreadsheet. My method works fairly well. I just write all important info on an envelope and group stuff together. And most things are paid the next day so its not that hard to keep track of I guess.

I tried using mint bills. So annoying. I could not get half of my accounts to add, gave up and deleted it.

Re: Why SO MANY Credit Cards?

Anonymous — Sun, 25 Oct 2015 05:14:28 GMT

I see...so is this related to the whole "gardening" idea? What is gardening exactly?

Re: Why SO MANY Credit Cards?

lhcole77 — Sun, 25 Oct 2015 05:19:55 GMT

I have the ones I do for sign up bonuses, extra discounts, cash back, rental insurance, special privileges, priority boarding, free checked bags, early check in, late check out, minimize effects of utilization, balance transfer offers, maintaining relationships with issuers...I could increase the list ad infinitum

Re: Why SO MANY Credit Cards?

Anonymous — Sun, 25 Oct 2015 05:48:52 GMT

For utililization and cash back

Re: Why SO MANY Credit Cards?

Imperfectfuture — Sun, 25 Oct 2015 05:42:30 GMT

@OmarGB9 wrote:
Different reasons really. Some people like the benefits/perks/bonuses/rewards that come with each individual card. Some like to collect cards. They probably do use them all, but they rotate them. And he's keeping up with them would probably be a full time job in itself lol. I have 7, which is quite a bit compared to the average consumer, haha, but I can manage. I've created a spreadsheet to keep track of everything.

Yes, some are on the chopping block. In the meantime, I will eek out every last month, since this will bouy up the AAOA. I don't go for SCT cards, but I do have a couple that are no longer offered, give great benefits, and offer great balance transfer options. Diversifying between banks is not such a bad idea. As your profile grows, you realize you have outgrown some cards, they get closed, and either lose the credit limit, or transfer the credit limit. But the closed cards stay on report for 10 years, along with any installment loans. Gives plenty of time to age your corp cards into 800+ territory.

Re: Why SO MANY Credit Cards?

vanillabean — Sun, 25 Oct 2015 05:43:27 GMT

I don't know.. Why do people collect baseball cards and tattoos? I guess one potato chip won't do.

Re: Why SO MANY Credit Cards?

OmarGB9 — Sun, 25 Oct 2015 06:02:08 GMT

Gardening basically means taking a break from applying for new credit and letting your accounts age and your limits grow.

Re: Why SO MANY Credit Cards?

happypill — Sun, 25 Oct 2015 06:22:32 GMT

Here are a few reasons:

Your credit score goes down as your utilization goes up, so if you actually want to use any of your limit it impacting your score, you need about 10x the limit.
Banks sometimes take AA for no reason. It is prudent to cultivate relationships with many different lenders so you're not affected if such things occur.
Many cards offer sign-on or annual bonuses. If someone is going to pay you $400 to apply for their card, why wouldn't you?
Cards offer different benefits. You might need several cards to get the best rewards on your higest spend categories. You might need some other cards that offer high limits. You might want a card for emergencies that has low APR, cash advance or BT fees. Other perks include high limits, no foreign transaction fees, other services and more.

Other folks probably have other reasons specific to themselves.

Re: Why SO MANY Credit Cards?

ddemari — Sun, 25 Oct 2015 06:22:33 GMT

People have many reasons for a lot of cards. For me I can manage dozens of accounts just fine and use cards for different reasons and go through periods where I want a card and since I have no issue with fearing getting into debt and I can support/ manage the cards I take on more. Granted all these cards have damaged my average account age which is something that I need to work on getting back up. And trying to take no more cards is what I need to focus on now that I have enough cards to meet all needs and then some

Re: Why SO MANY Credit Cards?

morgacj2004 — Sun, 25 Oct 2015 06:58:05 GMT

Honestly it is addicting but a better habit than smoking or using drugs. Lol.

Re: Why SO MANY Credit Cards?

TekkenQQ7 — Sun, 25 Oct 2015 07:21:18 GMT

@morgacj2004 wrote:
Honestly it is addicting but a better habit than smoking or using drugs. Lol.

Addiction is an addiction, and everything has a limit including good and bad

Re: Why SO MANY Credit Cards?

Anonymous — Sun, 25 Oct 2015 08:19:56 GMT

Because with my high scores, i can. And why not?

Re: Why SO MANY Credit Cards?

Anonymous — Sun, 25 Oct 2015 09:23:45 GMT

For each person the answer will differ, I have multiple cards because I cash back. I also have a few cards specifically for balance transfers.

Re: Why SO MANY Credit Cards?

Anonymous — Sun, 25 Oct 2015 09:19:22 GMT

@Anonymous wrote:
I see...so is this related to the whole "gardening" idea? What is gardening exactly?

When a person decides to garden they have chosen not to apply for new credit for a set period of time. They can still request SP CLIs but nothing that requires a HP. People garden for different reasons. I garden all the time, but this time I decided to join my fellow myFicoers in the garden. See the Garden Club thread within this forum for more information.

Re: Why SO MANY Credit Cards?

Discover2016 — Sun, 25 Oct 2015 10:07:32 GMT

I have 9 cards and that is my sweet spot, I would only go to 10 if I got the Venture with a nice sweet limit

Re: Why SO MANY Credit Cards?

Anonymous — Sun, 25 Oct 2015 11:11:27 GMT

Sign-up bonuses. New credit card product comes out with new features all the time, and once an account is opened it often makes little sense to close it, so they build up over time. Honestly, being a long-time customer means nothing, absofreakinglutely nothing to most banks. But if you are a new customer with a good (and sometimes not so good) credit, they will woo you with lots of goodies. So you need to be shopping for and jumping to greener pastures over time.

Re: Why SO MANY Credit Cards?

Sharingan — Sun, 25 Oct 2015 11:14:36 GMT

The simple answer is because I can, and because it's not anyone else's problem to deal with. For some of us, it's a good problem to have with careful management. All of my cards have a purpose in mind and while there is some overlap/redundancy currently, it will be dealt with when the time comes (AF renewal or simply ready to dispose of a card).

Lastly, I do enjoy a good sign up bonus and an opportunity to try out a card for a year to determine if it's a good fit. Some cards are keepers, such as the Hyatt and IHG cards. Alternatively, there are also some cards that I've determined to be a terrible fit after the first year and sign up bonus, such as the Venture card, which I'll have to deal with next summer.