topic Re: Why have so many credit cards? in Credit Cards

Why have so many credit cards?

Anonymous — Wed, 20 Apr 2016 00:17:14 GMT

I've only been on this forum for about a week and have really been enjoying all of the reading material. One question though which seems adequate to ask in the credit cards section here. Why do so many people on here have so many cards? I look at some of the sigs and see 10, 15, 20+ cards. One of the points that seems to come up in a lot of FAQs and such is basically if you aren't going to use it much or don't need it why get it which seems sort of contradictary to a lot of what I see on here. I mean maybe some people have the cash flow to be using 15-20 cards a lot each month, but I would think most dont. I undestand that it certainly keeps your utilization % super low and all which is certainly a benefit, but what are the other reasons for having a near half deck of cards?

Re: Why have so many credit cards?

Septrosh — Wed, 20 Apr 2016 00:26:10 GMT

They are addicts to credit cards or like them for perks or have been building their credit through the years and slowly grow into more rewarding and "prestigious" cards. Some, as you mentioned, might also do it to falsely lower their util %. I suspect for the non addicts it's mainly because they are growing their portfolio into better cards and don't want to close oldies so they "sock drawer" them.

Re: Why have so many credit cards?

MyLoFICO — Wed, 20 Apr 2016 00:27:20 GMT

I am guilty. I have 25 now. With a potential 3 more coming that I thought were outright denials, and probably will be. I have 7 that I need to kill of. I app'd before I knew any better. Then I learned and app'd again for better cards. Now I am in the garden until the dinosaurs come back.

Re: Why have so many credit cards?

taxi818 — Wed, 20 Apr 2016 00:27:23 GMT

@Anonymous wrote:
I've only been on this forum for about a week and have really been enjoying all of the reading material. One question though which seems adequate to ask in the credit cards section here. Why do so many people on here have so many cards? I look at some of the sigs and see 10, 15, 20+ cards. One of the points that seems to come up in a lot of FAQs and such is basically if you aren't going to use it much or don't need it why get it which seems sort of contradictary to a lot of what I see on here. I mean maybe some people have the cash flow to be using 15-20 cards a lot each month, but I would think most dont. I undestand that it certainly keeps your utilization % super low and all which is certainly a benefit, but what are the other reasons for having a near half deck of cards?

For me which i have 29. I helped me build up my profile when i first started rebuilding in 2013. I wanted it high so when i went to get loans they can see i had plenty credit references as they like to call them. also mostly for utilization. Example. 200k in total limits. if i use say 30k. then im still at 15% usage which does not hurt my score. have own business so sometimes expenses high. even with that kind of usage since fico is based on percentages not actual numbers. people like to pad their cards. also cards carry a lot of weight with your credit score. seeing how its 30% of your overall score. You don't need that many to have good score. 2-3 to be honest. just depends on your goals. knowledge and what you plan on doing in the future.

Re: Why have so many credit cards?

Anonymous — Wed, 20 Apr 2016 00:29:13 GMT

@Anonymous wrote:
I've only been on this forum for about a week and have really been enjoying all of the reading material. One question though which seems adequate to ask in the credit cards section here. Why do so many people on here have so many cards? I look at some of the sigs and see 10, 15, 20+ cards. One of the points that seems to come up in a lot of FAQs and such is basically if you aren't going to use it much or don't need it why get it which seems sort of contradictary to a lot of what I see on here. I mean maybe some people have the cash flow to be using 15-20 cards a lot each month, but I would think most dont. I undestand that it certainly keeps your utilization % super low and all which is certainly a benefit, but what are the other reasons for having a near half deck of cards?

Dont meant to ignore your post but this is a question that is asked a LOT here including within the last week on this forum. If you do a forum search you'll find many threads that deals with this question.

http://ficoforums.myfico.com/t5/forums/searchpage/tab/message?filter=labels%2Clocation&location=forum-board%3Acreditcard&q=why+so+many+credit+cards

Re: Why have so many credit cards?

MyLoFICO — Wed, 20 Apr 2016 00:28:28 GMT

@Septrosh wrote:
They are addicts to credit cards or like them for perks or have been building their credit through the years and slowly grow into more rewarding and "prestigious" cards. Some, as you mentioned, might also do it to falsely lower their util %. I suspect for the non addicts it's mainly because they are growing their portfolio into better cards and don't want to close oldies so they "sock drawer" them.

I take back what I said, this sounds much better. I want to go with this answer instead.

Re: Why have so many credit cards?

Anonymous — Wed, 20 Apr 2016 00:37:57 GMT

When you first join this forum you can get bit by the bug and go a little app crazy for really cool cards that can do "cool" things. For some the itch never stops and for others once they get it out of their system, they try to cut back and strengthen their cards to have what they only need / find useful. Regardless, if you're responsible none of it is wrong, credit cards are out there for people to use - whether it be for Low APR, Sign-Up Bonuses, Rewards etc.

Re: Why have so many credit cards?

Anonymous — Wed, 20 Apr 2016 00:41:58 GMT

Good info guys, thanks. Differing reasons. And as always, thanks for the subtle passive aggressive response Irish80

Those of you that have so many cards, did you pick them up a few here and there over time or go on massive app sprees a couple of times? I imagine answers differ to that question as well.

Re: Why have so many credit cards?

NRB525 — Wed, 20 Apr 2016 00:42:59 GMT

@Anonymous wrote:
I've only been on this forum for about a week and have really been enjoying all of the reading material. One question though which seems adequate to ask in the credit cards section here. Why do so many people on here have so many cards? I look at some of the sigs and see 10, 15, 20+ cards. One of the points that seems to come up in a lot of FAQs and such is basically if you aren't going to use it much or don't need it why get it which seems sort of contradictary to a lot of what I see on here. I mean maybe some people have the cash flow to be using 15-20 cards a lot each month, but I would think most dont. I undestand that it certainly keeps your utilization % super low and all which is certainly a benefit, but what are the other reasons for having a near half deck of cards?

How many cards do you have?

For myself, there's several of the cards that I've had a long time, including with high utilization and high balances. As those balances came down, in 2013 I started to notice the possibility of getting rewards. After joining here in late 2014, the specific rewards possibilities were easier to find out about due to the conversations of the members. The sign up bonuses for travel type cards, business travel alignment I have with some of the loyalty programs, and the ability to actually get approved for new cards now that my balances are down, leads to the situation where I have 25 active and reporting open cards The annual fees will be a reason to close some, but not all of the cards. The no AF cards often have other interesting features to keep them active.

The other consideration is, you can app for cards because they are there. Handling credit is a skill, the offerings of the banks are looking for good risks to issue cards to, and so taking the bank up on their offer gives you a chance to see whether the card works for your spend, whether you like the reward structure, or not. People can get as many cards as the are comfortable handling, bounded by the willingness of the bank to grant the credit.

In the long run, it's only one more financial relationship that one has to manage, and so each person makes their own choices how much they want to try for.

Re: Why have so many credit cards?

MyLoFICO — Wed, 20 Apr 2016 00:43:54 GMT

@Anonymous wrote:
When you first join this forum you can get bit by the bug and go a little app crazy for really cool cards that can do "cool" things. For some the itch never stops and for others once they get it out of their system, they try to cut back and strengthen their cards to have what they only need / find useful. Regardless, if you're responsible none of it is wrong, credit cards are out there for people to use - whether it be for Low APR, Sign-Up Bonuses, Rewards etc.

I like this one too. It makes me seem like I might be responsible. I'm not, but for a minute, I thought there might be hope.

Re: Why have so many credit cards?

Anonymous — Wed, 20 Apr 2016 00:46:16 GMT

@Anonymous wrote:
Good info guys, thanks. Differing reasons. And as always, thanks for the subtle passive aggressive response Irish80

Those of you that have so many cards, did you pick them up a few here and there over time or go on massive app sprees a couple of times? I imagine answers differ to that question as well.

lol well I don't think Irish80 is being Passive/agressive it's just a lot of people lately have been posting threads that are a bit over redundant and not many people use the search option where they can easily find their answers.

Regardless if threads are repeated, members on these forums are usually great / helpful and I don't find many that have negative attitudes.

Re: Why have so many credit cards?

Septrosh — Wed, 20 Apr 2016 00:50:07 GMT

@MyLoFICO wrote:
@Septrosh wrote:
They are addicts to credit cards or like them for perks or have been building their credit through the years and slowly grow into more rewarding and "prestigious" cards. Some, as you mentioned, might also do it to falsely lower their util %. I suspect for the non addicts it's mainly because they are growing their portfolio into better cards and don't want to close oldies so they "sock drawer" them.
I take back what I said, this sounds much better. I want to go with this answer instead.

haha Did you get the chance to get a post in the appaholics thread before the mods locked it?

Re: Why have so many credit cards?

JcT21 — Wed, 20 Apr 2016 00:50:56 GMT

when i started my rebuilding process 2yrs ago i wanted to get prime cards, i wanted 1 from each major bank.

i ended up with 4 from cap1, also cards from discover, amex, synchrony, barclays and comenity. here i am 2yrs later with 104k in avail credit. lately ive moved credit lines to other cards with cap1, amex and barclays. by doing this ive kept my credit in tact and ended up closing 4 cards. makes things easier to manage for me.

i havent tried to get in with citi yet but i will when the inq's from 2014 fall off. im not even gonna bother with chase at the moment because of their 5/24 rule.

its very addictive getting approved. since my rebuild i have not been denied....YET. the anticipation of waiting on the results once you hit the submit button....ahhh :-)

why have so many cards? for me it was trying to build my profile. now that i have, im trying to shed a few here and there without lowing my avail credit. im also all about reaping all the rewards possible.

Re: Why have so many credit cards?

MyLoFICO — Wed, 20 Apr 2016 01:11:13 GMT

@Septrosh wrote:
@MyLoFICO wrote:
@Septrosh wrote:
They are addicts to credit cards or like them for perks or have been building their credit through the years and slowly grow into more rewarding and "prestigious" cards. Some, as you mentioned, might also do it to falsely lower their util %. I suspect for the non addicts it's mainly because they are growing their portfolio into better cards and don't want to close oldies so they "sock drawer" them.
I take back what I said, this sounds much better. I want to go with this answer instead.
haha Did you get the chance to get a post in the appaholics thread before the mods locked it?

I posted in one that was about appoholics. not sure if its still there or not lol

Re: Why have so many credit cards?

Anonymous — Wed, 20 Apr 2016 01:13:33 GMT

I bought a new wallet and I had empty slots that needed to be filled.

Re: Why have so many credit cards?

Anonymous — Wed, 20 Apr 2016 01:18:18 GMT

@Anonymous wrote:
Good info guys, thanks. Differing reasons. And as always, thanks for the subtle passive aggressive response Irish80

I don't see Irish being passive-aggressive in his response at all. He is letting you know there is a lot of duplication and it is sometimes best to search before posting a new thread or idea. Helps keep the boards more streamlined and easier to find things if people don't keep asking the same questions in different threads.

Re: Why have so many credit cards?

MyLoFICO — Wed, 20 Apr 2016 01:19:07 GMT

@Anonymous wrote:
I bought a new wallet and I had empty slots that needed to be filled.

You crafty devil, you. Well played.

Re: Why have so many credit cards?

woodyman100 — Wed, 20 Apr 2016 01:19:23 GMT

@Septrosh wrote:
They are addicts to credit cards or like them for perks or have been building their credit through the years and slowly grow into more rewarding and "prestigious" cards. Some, as you mentioned, might also do it to falsely lower their util %. I suspect for the non addicts it's mainly because they are growing their portfolio into better cards and don't want to close oldies so they "sock drawer" them

I resemble, or have resembled some of this statement

Re: Why have so many credit cards?

pipeguy — Wed, 20 Apr 2016 10:02:45 GMT

In addition to or perhaps to mirror some of the comments made, in MY case this Forum has helped me score several nice cards that I doubt I'd have known about if I wasn't on MyFico. BHO Diners Club MC $20k, John Deere $15k (hidden card), BBVA AmEx $20k (sorry CreditCuriousity), and eBates $10k but I don't use it much. I current have 20 cards open and in good standing including cards that are not that popular on this Forum such as DCU and Congressional FCU low interest rather than rewards Visa(s) GM BuyPowwer $11k, and BB&T $12.5k low interest not rewards card.

I generally pay in full, and I like cash sign up bonuses, plus 00% promotional periods - these end after 6/12/15/21 months so I'll add another.as needed. I don't like AmEx (long story), I don't like Bank of America, and I've closed all my regular Capital One Cards as "worthless" to me at least and the only card I have that has an Annual Fee is the Diner's Club, although I've yet to pay a fee. I have very few store cards, but I used to have a bunch. What I'm trying to say is what one person finds useful, others don't and it's not one size fits all. There is also the utility factor and creating a "thick file" that ages and shows a strong credit history.

I probably only "need" 3 cards each from a different lender with maybe 40 to 50 percent of my current revolving credit limits and frankly I have closed over a dozen cards within the last year. After you get a bunch of good cards it gets harder to kill them off because you see value in what you have as far as cash back, rewards, low interest, etc. Within the next year I'm going to close a bunch of cards with a goal of getting down to 10-12, but looking at my current group, 4 could probably go, 6 if I really pressed, but getting down to 10-12 is going to be really hard.

One other benefit of a large diverse wallet is that closing one for whatever reason won't nick your scores. Case in point, Comenity closed my only card with them with a $10.k limit for no other reason that I pay in full and they were not making any interest off me (see various Total Rewards and Comenity threads), the loss of $10k in available credit had no effect on my scores at all, plus or minus so other than an ego ding and the fact I really liked the card, it was a non-event to my credit profile. If I had say only 2 or 3 cards this event would have hurt scoring and utility.

If I had to guess based on my experience the magic number is probably 6 good cards with good credit limits, for me that'll be very very difficult to cut back to, but who knows I'm going to retire in a couple of years and I might just do it then....

Edits - typos as per usual

Re: Why have so many credit cards?

Septrosh — Wed, 20 Apr 2016 01:37:39 GMT

@MyLoFICO wrote:
@Anonymous wrote:
I bought a new wallet and I had empty slots that needed to be filled.
You crafty devil, you. Well played.

Don't encourage him...