topic Re: Reasons to get (or avoid) a third card in Credit Cards

Reasons to get (or avoid) a third card

Anonymous — Sat, 26 Mar 2016 05:55:58 GMT

Hi all,

At the beginning of the week, I was approved for a Capital One Quicksilver with 10k limit. I also currently have an Amazon Rewards card by Chase with a 1k limit. In the thread I posted about applying for the Quicksilver, another member recommended that I apply for another credit card as well to diversify. I'm curious about this and wanted clarification. What are the reasons to apply for another card at this point?

My total average age of accounts as reported by FICO is over 10 years, and my average age of accounts for just credit cards (3 closed plus 1 active and new one) is over 5 years according to Credit Karma. 3 inquiries on Equifax & TransUnion and 2 on Experian (Capital One checked all 3 twice since they lost my application info and I had to re-apply by phone. The other inquiries are for internet service from just under 1 & 2 years ago, respectively). Scores are all around 800 (although one dropped to 799 after the Capital One application).

I don't need an additional new card (as I just got one), so my question is whether and/or how it's worthwhile to have 3 cards on principle.

Re: Reasons to get (or avoid) a third card

noobody — Sat, 26 Mar 2016 06:00:16 GMT

Why don't you dispute the HP if they lost your application AND pull your credit? they can not happen at once

Re: Reasons to get (or avoid) a third card

Anonymous — Sat, 26 Mar 2016 06:06:43 GMT

Not sure if it's worth it to dispute, not really sure how to go about it, and don't want to generate ill will with a company I just started to do business with.

Re: Reasons to get (or avoid) a third card

coldnmn — Sat, 26 Mar 2016 08:42:50 GMT

The only ill will I see is a customer service rep to lazy to find your original application and found it easier to pull your credit a second time. Your just correcting a wrong. Remember your credit limit is due to risk verses reward not the goodness of their heart. Your the customer that makes them money. All they care about is getting paid.

Re: Reasons to get (or avoid) a third card

driftless — Sat, 26 Mar 2016 12:32:12 GMT

The reason for the third card it is is commonly thought that FICO's algorithm rewards 3+ in its scoring. The comment about diversity is if one bank should lock down your credit cards, think fraud alert, etc., then you will still have cc's available to use from a second bank. For those reasons my wife and I carry cards from both Cap One and Chase.

Re: Reasons to get (or avoid) a third card

Anonymous — Sat, 26 Mar 2016 13:17:28 GMT

An additional reason for a third card would be diversification. Spreading your relationship out among multiple lenders can help protect you in the event that one lender decides to lower your limit or end the credit relationship (which they retain the right to do at any time).

You also have only a 1k credit limit with Chase, and they are not known for giving credit limit increases often without a hard pull. Your limit may stay at 1k for a long time.

Utilization is also an additional factor. Right now you may keep your utilization on your cards low, but if you had a need to carry a balance due to an unexpected expense, it would help you to have a bit of wiggle room on your credit cards.

Seeking out a low APR card would be an additional reason. Capital One cards often have a fairly high APR, and the Chase card probably has a middle to high APR. If you seek out a 3rd card with a low APR, such as a 7% APR card from a credit union or an 8% APR card such as Barclay Ring, this can provide you with a low interest option in the event that you do need to carry a balance, even if only for a short time.

Hope this helps.

Re: Reasons to get (or avoid) a third card

Anonymous — Sat, 26 Mar 2016 13:16:24 GMT

@Anonymous wrote:
An additional reason for a third card would be diversification. Spreading your relationship out among multiple lenders can help protect you in the event that one lender decides to lower your limit or end the credit relationship (which they retain the right to do at any time).

You also have only a 1k credit limit with Chase, and they are not known for giving credit limit increases often without a hard pull. Your limit may stay at 1k for a long time.

Utilization is also an additional factor. Right now you may keep your utilization on your cards low, but if you had a need to carry a balance due to an unexpected expense, it would help you to have a bit of wiggle room on your credit cards.

Seeking out a low APR card would be an additional reason. Capital One cards often have a fairly high APR, and the Chase card probably has a middle to high APR. If you seek out a 3rd card with a low APR, such as a 7% APR card from a credit union or an 8% card such as Barclay Ring, this can provide you with a low interest option in the event that you do need to carry a balance, even if only for a short time.

Hope this helps.

Re: Reasons to get (or avoid) a third card

Anonymous — Sat, 26 Mar 2016 13:20:11 GMT

Another point in favor of applying for a third card now is that your credit scores are excellent, and since you already took the AAoA hit by applying for the Capital One card this week, obtaining a 3rd card now would allow you the above benefits, and would not result in an additional AAoA hit.

Re: Reasons to get (or avoid) a third card

Anonymous — Sat, 26 Mar 2016 14:42:31 GMT

A card with a nice sign-on bonus for a future trip? hotel stay? If you don't like AF, there are a handful of rewards cards where they will waived the AF the 1st year. Good luck deciding.

Re: Reasons to get (or avoid) a third card

Anonymous — Sat, 26 Mar 2016 16:03:07 GMT

Humu's reasoning to get a low interest rate card in case I need to carry a balance at some point makes sense. I applied for the Barclay Ring as suggested. Their site said they're reviewing the application and will let me know within 10 days. I got the same message from Capital One when I initially applied online with them. I wonder if the fact that I'm opted out of pre-screened credit offers is factoring into that. *shrug*

At any rate, that's my last credit card application for a long time. Unless Barclay is really sensitive to inquiries, I should be approved without issue. Thanks all and I'll post if/when they give me the card.

Re: Reasons to get (or avoid) a third card

Anonymous — Sat, 26 Mar 2016 16:38:00 GMT

@Anonymous wrote:

I don't need an additional new card (as I just got one), so my question is whether and/or how it's worthwhile to have 3 cards on principle.

It is a good idea to have a diversified portfolio of cards because you never know when a lender decides to pull a fast one on you. If that would ever be the case you can close said account without worrying what will happen to your credit in the process. Think of it as a credit score insurance policy. Just my two cents.

Re: Reasons to get (or avoid) a third card

Anonymous — Sat, 26 Mar 2016 19:01:27 GMT

I called Barclay through the backdoor number posted on the forums and it turns out the reason for the delay is they wanted to make sure I was actually me. Interesting and also comforting that they do identity checks. I ended up getting approved with a 2.5k credit limit.

Re: Reasons to get (or avoid) a third card

red259 — Sat, 26 Mar 2016 20:19:44 GMT

@Anonymous wrote:
Hi all,

At the beginning of the week, I was approved for a Capital One Quicksilver with 10k limit. I also currently have an Amazon Rewards card by Chase with a 1k limit. In the thread I posted about applying for the Quicksilver, another member recommended that I apply for another credit card as well to diversify. I'm curious about this and wanted clarification. What are the reasons to apply for another card at this point?

My total average age of accounts as reported by FICO is over 10 years, and my average age of accounts for just credit cards (3 closed plus 1 active and new one) is over 5 years according to Credit Karma. 3 inquiries on Equifax & TransUnion and 2 on Experian (Capital One checked all 3 twice since they lost my application info and I had to re-apply by phone. The other inquiries are for internet service from just under 1 & 2 years ago, respectively). Scores are all around 800 (although one dropped to 799 after the Capital One application).

I don't need an additional new card (as I just got one), so my question is whether and/or how it's worthwhile to have 3 cards on principle.

Don't bother going for another card unless you want one. You can build your credit report with two cards just fine. I started with two cards and it worked just fine. Down the line if you want to add cards you can always do that, but its certainly not necessary. It is personal preference.

Re: Reasons to get (or avoid) a third card

bourgogne — Sat, 26 Mar 2016 23:06:06 GMT

Scores are all around 800 (although one dropped to 799 after the Capital One application).

I don't need an additional new card (as I just got one), so my question is whether and/or how it's worthwhile to have 3 cards on principle.

Hey, your scores are great, good for you. lots of great advice on this board. I don't think anyone really needs more than a few cards but I wanted to offset a fraud closure or something else going south and not getting stuck in europe. being that qs and venture are linked to cap1 I wanted to get cards with solid customer service, hence the chase and amex. if you travel having more vs less is good insurance, I always plan for worse case.

Re: Reasons to get (or avoid) a third card

Closingracer99 — Sun, 27 Mar 2016 04:58:35 GMT

@red259 wrote:
@Anonymous wrote:
Hi all,

At the beginning of the week, I was approved for a Capital One Quicksilver with 10k limit. I also currently have an Amazon Rewards card by Chase with a 1k limit. In the thread I posted about applying for the Quicksilver, another member recommended that I apply for another credit card as well to diversify. I'm curious about this and wanted clarification. What are the reasons to apply for another card at this point?

My total average age of accounts as reported by FICO is over 10 years, and my average age of accounts for just credit cards (3 closed plus 1 active and new one) is over 5 years according to Credit Karma. 3 inquiries on Equifax & TransUnion and 2 on Experian (Capital One checked all 3 twice since they lost my application info and I had to re-apply by phone. The other inquiries are for internet service from just under 1 & 2 years ago, respectively). Scores are all around 800 (although one dropped to 799 after the Capital One application).

I don't need an additional new card (as I just got one), so my question is whether and/or how it's worthwhile to have 3 cards on principle.
Don't bother going for another card unless you want one. You can build your credit report with two cards just fine. I started with two cards and it worked just fine. Down the line if you want to add cards you can always do that, but its certainly not necessary. It is personal preference.

Meh. If say both cards have $500 limits you're probably better off apping for one more to at least have better util %

Re: Reasons to get (or avoid) a third card

red259 — Sun, 27 Mar 2016 06:00:47 GMT

@Closingracer99 wrote:
@red259 wrote:
@Anonymous wrote:
Hi all,

At the beginning of the week, I was approved for a Capital One Quicksilver with 10k limit. I also currently have an Amazon Rewards card by Chase with a 1k limit. In the thread I posted about applying for the Quicksilver, another member recommended that I apply for another credit card as well to diversify. I'm curious about this and wanted clarification. What are the reasons to apply for another card at this point?

My total average age of accounts as reported by FICO is over 10 years, and my average age of accounts for just credit cards (3 closed plus 1 active and new one) is over 5 years according to Credit Karma. 3 inquiries on Equifax & TransUnion and 2 on Experian (Capital One checked all 3 twice since they lost my application info and I had to re-apply by phone. The other inquiries are for internet service from just under 1 & 2 years ago, respectively). Scores are all around 800 (although one dropped to 799 after the Capital One application).

I don't need an additional new card (as I just got one), so my question is whether and/or how it's worthwhile to have 3 cards on principle.
Don't bother going for another card unless you want one. You can build your credit report with two cards just fine. I started with two cards and it worked just fine. Down the line if you want to add cards you can always do that, but its certainly not necessary. It is personal preference.
Meh. If say both cards have $500 limits you're probably better off apping for one more to at least have better util %

OP said they have 11k credit so util isn't really a major concern the way it would be with low limit cards.

Re: Reasons to get (or avoid) a third card

SouthJamaica — Sun, 27 Mar 2016 13:32:34 GMT

@Anonymous wrote:
Hi all,

At the beginning of the week, I was approved for a Capital One Quicksilver with 10k limit. I also currently have an Amazon Rewards card by Chase with a 1k limit. In the thread I posted about applying for the Quicksilver, another member recommended that I apply for another credit card as well to diversify. I'm curious about this and wanted clarification. What are the reasons to apply for another card at this point?

My total average age of accounts as reported by FICO is over 10 years, and my average age of accounts for just credit cards (3 closed plus 1 active and new one) is over 5 years according to Credit Karma. 3 inquiries on Equifax & TransUnion and 2 on Experian (Capital One checked all 3 twice since they lost my application info and I had to re-apply by phone. The other inquiries are for internet service from just under 1 & 2 years ago, respectively). Scores are all around 800 (although one dropped to 799 after the Capital One application).

I don't need an additional new card (as I just got one), so my question is whether and/or how it's worthwhile to have 3 cards on principle.

With your scores at 800 you don't need to do anything. Your scores are already optimized. You should be telling us what to do.

If you needed to optimize your scores, it's helpful, in terms of FICO points, to have 3 rather than 2 cards, and then let 2 report at zero, with the 3rd reporting a small balance. Reason: it's better to have less than 50% of cards reporting a balance, but not good to have all cards reporting zero. With 2 cards you can't thread that needle, with 3 cards you can.

Re: Reasons to get (or avoid) a third card

jeffery581 — Sun, 27 Mar 2016 14:05:20 GMT

If they have a problem with it........ Thats why you want to diversify your cards, 4-5 different banks. Then you can say bye bye to one of them (or more) if they try and pull shenanigans. I like to remind banks of this in the rare case of an issue. I have numerous other cards with better rewards and I do not know if I really need this card with all the hassle... ect.

Re: Reasons to get (or avoid) a third card

EdMan63 — Sun, 27 Mar 2016 15:02:25 GMT

@red259 wrote:
@Anonymous wrote:
Hi all,

At the beginning of the week, I was approved for a Capital One Quicksilver with 10k limit. I also currently have an Amazon Rewards card by Chase with a 1k limit. In the thread I posted about applying for the Quicksilver, another member recommended that I apply for another credit card as well to diversify. I'm curious about this and wanted clarification. What are the reasons to apply for another card at this point?

My total average age of accounts as reported by FICO is over 10 years, and my average age of accounts for just credit cards (3 closed plus 1 active and new one) is over 5 years according to Credit Karma. 3 inquiries on Equifax & TransUnion and 2 on Experian (Capital One checked all 3 twice since they lost my application info and I had to re-apply by phone. The other inquiries are for internet service from just under 1 & 2 years ago, respectively). Scores are all around 800 (although one dropped to 799 after the Capital One application).

I don't need an additional new card (as I just got one), so my question is whether and/or how it's worthwhile to have 3 cards on principle.
Don't bother going for another card unless you want one. You can build your credit report with two cards just fine. I started with two cards and it worked just fine. Down the line if you want to add cards you can always do that, but its certainly not necessary. It is personal preference.

This. You're already in good shape score wise. It's just a personal preference.