topic Re: Sooo many credit cards, so what in Credit Cards

Sooo many credit cards, so what

sarge12 — Mon, 22 Aug 2016 15:57:04 GMT

I am trying to understand how some posters are so proud of how many cards they have secured. Why??? If I have 15 cards, all that really says is I am intelligent enough to fill out 15 credit card applications. People also make statements like I am the proud owner of 20 credit cards....no you are not, the banks own those cards, and can turn them into useless landfill plastic at any moment without even needing a reason. Credit cards are not an asset, and in the wrong hands can be very dangerous to ones financial future. Credit cards only represent the ability to easily take on debt. Now I am not saying having a lot of cards is bad, I have a lot of them myself due to a weakness to resist free money in rewards bonuses. but it is not something I take pride in. I am proud of the fact that I have responsibly handled all my credit. That is an accomplishment. So is a high credit score, especially if maintained over years of elapsed time. If someone posts that they have 50 credit cards, I'm thinking, so what they know how to fill out apps. Not really an accomplishment. I also see it as a red flag for someones credit future if this is what you take pride in. End Rant!!!!

Comments welcome, even if you disagree!!!

Re: Sooo many credit cards, so what

Anonymous — Mon, 22 Aug 2016 16:26:22 GMT

I have 86 account showing up on my TransUnion. 25 are open. That is counting the personal loans and auto loans I have had since age 18. I turn 40 this year. 3 of my accounts are over 12 years old. Jcpenny is over 20.

I can see your point. A 20 year old collecting credit cards then going outside and collecting Pokemon has no business ramping accounts up that quick.

There isn't much to brag about if you are approved for 15 cards. It's because you meet the criteria as everyone else that has them. Now if you beat the system and got something that you don't deserve you need to shut up and enjoy it! Don't let the secret out to myfico lol.

I think the majority of the people who post all the pretty cards in their signatures is because they have overcome things and feel like they have earned them, whereas six months ago a year ago 2 years ago there was no chance at all to be approved.

The people with excellent credit and excellent income are posting those pretty cards to kind of set an example… these are the ones they use to save money with their use, which is how you're supposed to use credit cards when you can obtain the cash back and points system accounts.

Re: Sooo many credit cards, so what

Random_idiot — Mon, 22 Aug 2016 16:27:43 GMT

Everyone has different reasons.

Some may not like rewards, and utilize the cash back feat. While others do it, as you mentioned, a way to 'show off.' I personally don't get that reason either.

I am happy with just a handful of cards, and only use 1 heavily, and utilize the others in a way thats beneficial (whether they may be free monthly fico score, combination of ultimate rewards, etc. etc.).

If people have 15 cards, and all 15 are beneficial, I completely understand. But to each their own I guess..

Re: Sooo many credit cards, so what

Anonymous — Mon, 22 Aug 2016 17:31:22 GMT

@sarge12 wrote:
I am trying to understand how some posters are so proud of how many cards they have secured. Why??? If I have 15 cards, all that really says is I am intelligent enough to fill out 15 credit card applications. People also make statements like I am the proud owner of 20 credit cards....no you are not, the banks own those cards, and can turn them into useless landfill plastic at any moment without even needing a reason. Credit cards are not an asset, and in the wrong hands can be very dangerous to ones financial future. Credit cards only represent the ability to easily take on debt. Now I am not saying having a lot of cards is bad, I have a lot of them myself due to a weakness to resist free money in rewards bonuses. but it is not something I take pride in. I am proud of the fact that I have responsibly handled all my credit. That is an accomplishment. So is a high credit score, especially if maintained over years of elapsed time. If someone posts that they have 50 credit cards, I'm thinking, so what they know how to fill out apps. Not really an accomplishment. I also see it as a red flag for someones credit future if this is what you take pride in. End Rant!!!!

Comments welcome, even if you disagree!!!

I think the majority of people who have many cards feel a sense of pride about their responsibility in managing their credit - just as you do. It is a privilege that is earned to be extended credit by a lender, and some people don't even qualify for a single card, so I think you are just a bit misguided in the assumption that people who like having many cards are proud of something worthless. However, I do agree that the people who are proud of having cards just for the sake of having cards need to re-evaluate their priorities and the things in which they take pride.

Re: Sooo many credit cards, so what

sarge12 — Mon, 22 Aug 2016 17:33:26 GMT

@Anonymous wrote:
I have 86 account showing up on my TransUnion. 25 are open. That is counting the personal loans and auto loans I have had since age 18. I turn 40 this year. 3 of my accounts are over 12 years old. Jcpenny is over 20.

I can see your point. A 20 year old collecting credit cards then going outside and collecting Pokemon has no business ramping accounts up that quick.

There isn't much to brag about if you are approved for 15 cards. It's because you meet the criteria as everyone else that has them. Now if you beat the system and got something that you don't deserve you need to shut up and enjoy it! Don't let the secret out to myfico lol.

I think the majority of the people who post all the pretty cards in their signatures is because they have overcome things and feel like they have earned them, whereas six months ago a year ago 2 years ago there was no chance at all to be approved.

The people with excellent credit and excellent income are posting those pretty cards to kind of set an example… these are the ones they use to save money with their use, which is how you're supposed to use credit cards when you can obtain the cash back and points system accounts.

No, I am not critisizing the pictures of cards, some of these cards are not available to anyone without excellent credit. It is specifically those that bragg about the number of cards they have obtained that I do not understand. It is quality not quantity that matters. If someone manages to acquire 5 Credit One cards, well I'm unimpressed. The no.1 credit card mistake according to some experts is too many revolving accounts. It can prevent someone from recieving the best mortgages by making their potential DTI too high and that can make the bank nervous....what if this guy runs up those 20 credit cards and winds up in BK!! I know I have way too many premium cards myself due to all the 200 dollar bonus offers, but I sure am not proud of that.

Re: Sooo many credit cards, so what

Anonymous — Mon, 22 Aug 2016 17:46:55 GMT

Too many revolving accounts with a low score and low income is only potential disaster that can be seen with manual underwriting. Credit unions don't like it, mortgage lending doesn't like it, but car loans and credit cards for the most part look the other way. By the same token if you have 15 accounts and only five of them have balances it looks better than 5 accounts all reporting balances even if util is under control

Re: Sooo many credit cards, so what

sarge12 — Mon, 22 Aug 2016 17:46:56 GMT

Cut and paste from creditcards.com

Experts' advice can steer you away from the top 10 credit card mistakes.

1. Getting too many
Bypass the shredder and you could make one of the most common credit card blunders by collecting too many credit cards. "Stop and think: do you really need another credit card?" Kersetter says. "The more credit cards you have, the better chance you have of getting deeper in debt."

Remember, credit cards are not a form of supplemental income, says June A. Schroeder, a certified financial planner with Liberty Financial Group Inc. in Elm Grove, Wisconsin.

The annual fees of multiple cards also can add up, Kersetter says.

Having too many cards can also negatively impact both your credit score and your ability to borrow money, she says. On one hand, adding more cards helps your score by lowering your credit utilization ratio -- the amount of debt you carry compared to your available lines of credit. On the other hand, "If you have a lot of credit cards with high credit limits and you go for a mortgage, the lender will take into consideration, 'What if you ran those credit cards up? What would your debt-to-income ratio be?' "

How many is too many? "We have people who are successful using one card because it's easy to track with all their records in one place," Kerstetter says. "Having three to five credit cards is usually not a problem. But if you find your credit card balances are increasing, that's a danger signal. The solution is definitely not another card."

Re: Sooo many credit cards, so what

Anonymous — Mon, 22 Aug 2016 17:50:38 GMT

I'm fairly new to this forum and I agree with you OP.. it blows my mind how alot of people here have 20, 25+ credit cards. I don't think it's the end of the world to have that many cards but I've always felt that having more than 6 cards is too many.

Re: Sooo many credit cards, so what

kdm31091 — Mon, 22 Aug 2016 17:58:32 GMT

I think the average consumer who wants to build credit and maybe get some rewards, 3 solid cards with decent limits are more than enough. We get caught up in the hype chasing after rewards and it can bite you in the behind if you aren't careful. We get caught up in "credit world" ideas like "diversity" which some people use as an excuse to apply for way more than they need. To each his own, but the reality is all of the big banks are not going to shut down your cards all at once. 3 or so cards from 3 distinct banks are plenty for most people. If you want more fine, but it's not really necessary from a credit standpoint.

I know people who have even less than that, just 1 or 2 cards in good standing, and have scores in the 800's. If anything you will end up dragging your score down with constant apping trying to be "diverse".

If one wants to maximize rewards at get lots of cards, that's fine, but it becomes increasingly harder to track spending the more cards you are spending on, and you will find yourself spending just to keep them active, etc...can be a slippery slope of spending more than you need to.

Re: Sooo many credit cards, so what

Anonymous — Mon, 22 Aug 2016 18:07:35 GMT

@kdm31091 wrote:
I think the average consumer who wants to build credit and maybe get some rewards, 3 solid cards with decent limits are more than enough. We get caught up in the hype chasing after rewards and it can bite you in the behind if you aren't careful. We get caught up in "credit world" ideas like "diversity" which some people use as an excuse to apply for way more than they need. To each his own, but the reality is all of the big banks are not going to shut down your cards all at once. 3 or so cards from 3 distinct banks are plenty for most people. If you want more fine, but it's not really necessary from a credit standpoint.

I know people who have even less than that, just 1 or 2 cards in good standing, and have scores in the 800's. If anything you will end up dragging your score down with constant apping trying to be "diverse".

If one wants to maximize rewards at get lots of cards, that's fine, but it becomes increasingly harder to track spending the more cards you are spending on, and you will find yourself spending just to keep them active, etc...can be a slippery slope of spending more than you need to.

You'd be surprised by how many people only have ONE credit card. I accepts payments all day long from customers and I've noticed two things:

1. Most people pay me with their DEBIT card.

2. The ones that do pay with a CC generally have one card (I know this because anytime it declines for whatever reason I ask for a second card and they tell me they only have one cc)

We're definetly the minority here on this board..

Re: Sooo many credit cards, so what

Anonymous — Mon, 22 Aug 2016 18:14:40 GMT

I disagree with you, OP. I have over 25 credit cards and just picked up 4 these past couple days. They're very easy to manage, rewards are great, and I pay no interest. Obviously I'm not going around claiming I'm worth $150,000 more in net worth because of these cards. Nothing, but positive results for me for getting more and more cards.

Re: Sooo many credit cards, so what

Credit_hawk — Mon, 22 Aug 2016 18:37:11 GMT

This forum is a gift and a curse. A wealth of information but also can promote credit seeking behavior.

We absolutely are a minority. I didn't even know it was possible to have 20 credit cards until I joined these forums. It's an eye opener lol.

I'm keeping mine in single digits lol.

There are many studies that show we spend more when not using hard cash. That goes for any kind of electronic currency- debit or credit card swipes. If you think you don't you're lying to yourself. It's harder to break that extra $20 or $100 bill down for that extra purchase you know you don't need compared to sliding a card through. Banks and merchants know this which is why merchants accept the machines and transaction fees in the first place.

Where people like Dave Ramsey get it wrong- whether unintentionally or intentionally is this phenomenon isn't exclusive to credit cards but also debit cards. They don't mention that part of the study lol. Anybody who majored or minored in marketing or business knows of these habits just like how products are always in $0.99 increments because many studies have shown that the human eye just focuses on the first number in the price and doesn't process the remaing digits--cents as much.

Re: Sooo many credit cards, so what

galahad15 — Mon, 22 Aug 2016 18:58:37 GMT

Personally, I think that having a wide range of available cards, both in terms of rewards and APRs, is an advantage. Why? If you have multiple cards below 10% APR and one or more lender RJ's you, you still have that many cards leftover where the lender did not RJ you. Same deal with rewards -- one of the reason I carry four 2% rewards cards is, as we know, lenders can nerf or eliminate rewards programs at any time. So for example even if 3 lenders were to nerf 3 of my 2% rewards cards, I would still have the one left over that wasn't nerfed. Therefore, having deliberate, built-in redundancy in terms of rewards and low-APR cards is, in mho, an asset and a way to give yourself automatic backup cards and insurance, should a lender decide to RJ or change/eliminate rewards programs.

Re: Sooo many credit cards, so what

sarge12 — Mon, 22 Aug 2016 20:03:02 GMT

@galahad15 wrote:
Personally, I think that having a wide range of available cards, both in terms of rewards and APRs, is an advantage. Why? If you have multiple cards below 10% APR and one or more lender RJ's you, you still have that many cards leftover where the lender did not RJ you. Same deal with rewards -- one of the reason I carry four 2% rewards cards is, as we know, lenders can nerf or eliminate rewards programs at any time. So for example even if 3 lenders were to nerf 3 of my 2% rewards cards, I would still have the one left over that wasn't nerfed. Therefore, having deliberate, built-in redundancy in terms of rewards and low-APR cards is, in mho, an asset and a way to give yourself automatic backup cards and insurance, should a lender decide to RJ or change/eliminate rewards programs.

This sounds like something I would come up with if I was trying to justify my credit habits. Really 4 2% cards in case 3 lenders were to nerf cards at one time, are you serious? If something so ridiculous was to occour...ok...you only get 1% reward. I'm sure you and your cards could weather the shortfall. It would not cause a catastrophy!

Re: Sooo many credit cards, so what

kdm31091 — Mon, 22 Aug 2016 20:10:45 GMT

@sarge12 wrote:
@galahad15 wrote:
Personally, I think that having a wide range of available cards, both in terms of rewards and APRs, is an advantage. Why? If you have multiple cards below 10% APR and one or more lender RJ's you, you still have that many cards leftover where the lender did not RJ you. Same deal with rewards -- one of the reason I carry four 2% rewards cards is, as we know, lenders can nerf or eliminate rewards programs at any time. So for example even if 3 lenders were to nerf 3 of my 2% rewards cards, I would still have the one left over that wasn't nerfed. Therefore, having deliberate, built-in redundancy in terms of rewards and low-APR cards is, in mho, an asset and a way to give yourself automatic backup cards and insurance, should a lender decide to RJ or change/eliminate rewards programs.
This sounds like something I would come up with if I was trying to justify my credit habits. Really 4 2% cards in case 3 lenders were to nerf cards at one time, are you serious? If something so ridiculous was to occour...ok...you only get 1% reward. I'm sure you and your cards could weather the shortfall. It would not cause a catastrophy!

Pretty much. Not the end of the world.

Re: Sooo many credit cards, so what

Anonymous — Mon, 22 Aug 2016 20:15:50 GMT

@kdm31091 wrote:
@sarge12 wrote:
@galahad15 wrote:
Personally, I think that having a wide range of available cards, both in terms of rewards and APRs, is an advantage. Why? If you have multiple cards below 10% APR and one or more lender RJ's you, you still have that many cards leftover where the lender did not RJ you. Same deal with rewards -- one of the reason I carry four 2% rewards cards is, as we know, lenders can nerf or eliminate rewards programs at any time. So for example even if 3 lenders were to nerf 3 of my 2% rewards cards, I would still have the one left over that wasn't nerfed. Therefore, having deliberate, built-in redundancy in terms of rewards and low-APR cards is, in mho, an asset and a way to give yourself automatic backup cards and insurance, should a lender decide to RJ or change/eliminate rewards programs.
This sounds like something I would come up with if I was trying to justify my credit habits. Really 4 2% cards in case 3 lenders were to nerf cards at one time, are you serious? If something so ridiculous was to occour...ok...you only get 1% reward. I'm sure you and your cards could weather the shortfall. It would not cause a catastrophy!
Pretty much. Not the end of the world.

And if one card nerfs for whatever reason, you can get another at that time (there is usually some notice of term change). Now if three are nerfing because of some economic meltdown, it is a) pretty likely that the fourth would as well, and b) this wouldn't be the biggest of your problems.

It's a little similar to "I need 500K in CL, for utilzation" type stuff.

Re: Sooo many credit cards, so what

sarge12 — Mon, 22 Aug 2016 20:21:25 GMT

@Anonymous wrote:
@kdm31091 wrote:
@sarge12 wrote:
@galahad15 wrote:
Personally, I think that having a wide range of available cards, both in terms of rewards and APRs, is an advantage. Why? If you have multiple cards below 10% APR and one or more lender RJ's you, you still have that many cards leftover where the lender did not RJ you. Same deal with rewards -- one of the reason I carry four 2% rewards cards is, as we know, lenders can nerf or eliminate rewards programs at any time. So for example even if 3 lenders were to nerf 3 of my 2% rewards cards, I would still have the one left over that wasn't nerfed. Therefore, having deliberate, built-in redundancy in terms of rewards and low-APR cards is, in mho, an asset and a way to give yourself automatic backup cards and insurance, should a lender decide to RJ or change/eliminate rewards programs.
This sounds like something I would come up with if I was trying to justify my credit habits. Really 4 2% cards in case 3 lenders were to nerf cards at one time, are you serious? If something so ridiculous was to occour...ok...you only get 1% reward. I'm sure you and your cards could weather the shortfall. It would not cause a catastrophy!
Pretty much. Not the end of the world.
And if one card nerfs for whatever reason, you can get another at that time (there is usually some notice of term change). Now if three are nerfing because of some economic meltdown, it is a) pretty likely that the fourth would as well, and b) this wouldn't be the biggest of your problems.

It's a little similar to "I need 500K in CL, for utilzation" type stuff.

True, but if it makes him feel better, he does not have to justify this to me.

Re: Sooo many credit cards, so what

galahad15 — Mon, 22 Aug 2016 20:31:53 GMT

@sarge12 wrote:
@galahad15 wrote:
Personally, I think that having a wide range of available cards, both in terms of rewards and APRs, is an advantage. Why? If you have multiple cards below 10% APR and one or more lender RJ's you, you still have that many cards leftover where the lender did not RJ you. Same deal with rewards -- one of the reason I carry four 2% rewards cards is, as we know, lenders can nerf or eliminate rewards programs at any time. So for example even if 3 lenders were to nerf 3 of my 2% rewards cards, I would still have the one left over that wasn't nerfed. Therefore, having deliberate, built-in redundancy in terms of rewards and low-APR cards is, in mho, an asset and a way to give yourself automatic backup cards and insurance, should a lender decide to RJ or change/eliminate rewards programs.
This sounds like something I would come up with if I was trying to justify my credit habits. Really 4 2% cards in case 3 lenders were to nerf cards at one time, are you serious? If something so ridiculous was to occour...ok...you only get 1% reward. I'm sure you and your cards could weather the shortfall. It would not cause a catastrophy!

Having backups is not the only reason I have four 2% rewards cards -- I also like to be able to spread my spend out among them, if needed. You may have a different opinion on the subject, but I don't think it's ridiculous to have backups. Remember what the lenders did during CARD Act, for example? RJ, RJ, RJ, and more RJ, plus can you say CIT (change in terms) -- ad, rinse, repeat? Another future CARD Act-type event is not fully out of the question either, if there is another calamitous financial event such as another housing bubble, another Lehman Bros. kind of event, etc.

Re: Sooo many credit cards, so what

redpat — Mon, 22 Aug 2016 20:30:28 GMT

Doesn't everyone know MYFICO Forums is a form of an Arms Race.........Only here is the not normal.

Smoke em if you got em........

Re: Sooo many credit cards, so what

sarge12 — Mon, 22 Aug 2016 20:30:35 GMT

In my opinion, building more redundency into my rewards program than NASA ever built into the space program is going overboard, but I defend your right to do so.

@galahad15 wrote:
@sarge12 wrote:
@galahad15 wrote:
Personally, I think that having a wide range of available cards, both in terms of rewards and APRs, is an advantage. Why? If you have multiple cards below 10% APR and one or more lender RJ's you, you still have that many cards leftover where the lender did not RJ you. Same deal with rewards -- one of the reason I carry four 2% rewards cards is, as we know, lenders can nerf or eliminate rewards programs at any time. So for example even if 3 lenders were to nerf 3 of my 2% rewards cards, I would still have the one left over that wasn't nerfed. Therefore, having deliberate, built-in redundancy in terms of rewards and low-APR cards is, in mho, an asset and a way to give yourself automatic backup cards and insurance, should a lender decide to RJ or change/eliminate rewards programs.
This sounds like something I would come up with if I was trying to justify my credit habits. Really 4 2% cards in case 3 lenders were to nerf cards at one time, are you serious? If something so ridiculous was to occour...ok...you only get 1% reward. I'm sure you and your cards could weather the shortfall. It would not cause a catastrophy!
Having backups is not the only reason I have four 2% rewards cards -- I also like to be able to spread my spend out among them, if needed. You may have a different opinion on the subject, but I don't think it's ridiculous to have backups. Remember what the lenders did during CARD Act, for example? RJ, RJ, RJ, and more RJ, plus can you say CIT (change in terms) -- ad, rinse, repeat? Another future CARD Act-type event is not fully out of the question either, if there is another calamitous financial event such as another housing bubble, another Leham Bros. kind of event, etc.