topic Re: How Many Credit Cards Are Really Needed in Credit Cards

How Many Credit Cards Are Really Needed

Anonymous — Tue, 27 Sep 2016 23:41:33 GMT

Hey guys, im really trying to figure out how many credit cards you really need to have. I currently only have 1 credit card with a CL of 20k. My Fico 8 scores are already pretty high Equifax - 734, Exp - 759, Trans - 760 and all of my other scoring models are high aswell, in the 750-800 range. My credit card is only 1 yr 10 m old and my aaoa is about 1 yr 2 m. I have 1 auto loan that i got 8 months ago at 7.19% which i think the dealer screwed me on (very stressful experience), but anyways it was my first time and i didnt know what i was doing. I just refinanced and was instantly approved for a 1.49% apr. I dont really need to use my credit for anything for a long time really until i get a home some day maybe im not sure. I know people will say you need multiple cc's but is that really true because my scores are already good. I dont have the need for any other cards and dont really want any but i want to have all the information about it. Will more cards really benefit me? What will they do that i already cannot? Any help is greatly appreciated, and i can answer any more questions needed, thanks.

Re: How Many Credit Cards Are Really Needed

SunriseEarth — Wed, 28 Sep 2016 00:33:51 GMT

@Anonymous wrote:
Hey guys, im really trying to figure out how many credit cards you really need to have. I currently only have 1 credit card with a CL of 20k. My Fico 8 scores are already pretty high Equifax - 734, Exp - 759, Trans - 760 and all of my other scoring models are high aswell, in the 750-800 range. My credit card is only 1 yr 10 m old and my aaoa is about 1 yr 2 m. I have 1 auto loan that i got 8 months ago at 7.19% which i think the dealer screwed me on (very stressful experience), but anyways it was my first time and i didnt know what i was doing. I just refinanced and was instantly approved for a 1.49% apr. I dont really need to use my credit for anything for a long time really until i get a home some day maybe im not sure. I know people will say you need multiple cc's but is that really true because my scores are already good. I dont have the need for any other cards and dont really want any but i want to have all the information about it. Will more cards really benefit me? What will they do that i already cannot? Any help is greatly appreciated, and i can answer any more questions needed, thanks.

One of the factors in scoring is UTIL. There is overall UTIL and UTIL for each card. However, scores also increase when half or more of your CCs have a zero balance. The only issue with having one CC is either a balance reports or it doesn't, so you can't ever have half of your cards with a zero balance.

Sicne you don't "need" credit, it might be good to get credit that can help you benefit from what you already spend money on. What CC do you currently have? What is your spend usually like in a month (i.e., where do you shop/spend)? Do you travel at all? Are you a member of any warehouse stores or do you have any other stores you like?

Re: How Many Credit Cards Are Really Needed

Anonymous — Wed, 28 Sep 2016 00:37:16 GMT

Based on a recent thread apparently people need 17 cards with plans to continuously app for 3-7 cards every year until their collection is complete, filled with SLs of $300-500

Re: How Many Credit Cards Are Really Needed

austinguy907 — Wed, 28 Sep 2016 00:43:38 GMT

Taking into account wanting to get a mortgage in the next few years potentially you'll want to have 3-5 CC's depending on the UW for the mortgage showing 1-2 years of activity. Right now you're sitting pretty well with the refi @ 1.49% and 20K line you have currently.

The reason behind the dealer rate sounds like you didn't have much in your profile to support a lower rate at the time and they probably didn't query any CU's for a lower rate. Standard auto finance at the dealer is min of 5% with the big banks to begin with since they're just doing them a favor sending them a new customer. Unfortunately in the auto game the best finance rates are on new vehicles where they're offering 0.0%-3.9% for whatever special of the month is going on. Let's chalk it up to a lesson learned and pre-qual with a CU before venturing into a dealer again.

My suggestion with adding 2 additional cards would be AMEX / Discover for diversification and growth of the CL's as time goes by. Both of them should pull EX to open and provide free monthly Fico's. Amex has the whole 3X CLI option at 61 days / 181 days after that and Discover does them after the first 90 days and both are SP for CLI.

If you find you really want something else after those you should be golden for decent opening limits.

Re: How Many Credit Cards Are Really Needed

Anonymous — Wed, 28 Sep 2016 00:46:15 GMT

I currently just have a NFCU Go Rewards. I maybe spend 500 a month and all of my spending is only food, mostly eating out and some groceries, although i would like to switch that around lol. I dont really spend much money and am more so trying to save money to pay for school upfront and to invest. So if i am to get another am i right to think just 1 other cc will be enough and just keep it a zero balance while still using it?

Re: How Many Credit Cards Are Really Needed

Anonymous — Wed, 28 Sep 2016 00:47:47 GMT

@Anonymous wrote:
Hey guys, im really trying to figure out how many credit cards you really need to have. I currently only have 1 credit card with a CL of 20k. My Fico 8 scores are already pretty high Equifax - 734, Exp - 759, Trans - 760 and all of my other scoring models are high aswell, in the 750-800 range. My credit card is only 1 yr 10 m old and my aaoa is about 1 yr 2 m. I have 1 auto loan that i got 8 months ago at 7.19% which i think the dealer screwed me on (very stressful experience), but anyways it was my first time and i didnt know what i was doing. I just refinanced and was instantly approved for a 1.49% apr. I dont really need to use my credit for anything for a long time really until i get a home some day maybe im not sure. I know people will say you need multiple cc's but is that really true because my scores are already good. I dont have the need for any other cards and dont really want any but i want to have all the information about it. Will more cards really benefit me? What will they do that i already cannot? Any help is greatly appreciated, and i can answer any more questions needed, thanks.

*** It all depends on what you think you need and want. If you are happy with one card, stick with it. If you need 2 or more, apply to a few credit cards. I personally enjoy having a collection of cards. It helps when there is an emergency and you desperately need money quickly! I also reccommend getting a bank card that you can also put on android pay, samnsung pay, apple pay. You have no idea how many times I've forgotten my wallet at home and my trusty phone was the only thing I got. I was hungry so I ran to Panera and paid for food with my phone! Anyways, I do hope that you app for a few!

Re: How Many Credit Cards Are Really Needed

Anonymous — Wed, 28 Sep 2016 00:48:00 GMT

It's really subjective and its all personal preference. I have a couple of cards, and I probably only really NEED 2, a main one and probably a back up card. But of course im a credit addict and credit cards is a hobby to me and for many on this board so everyone has a good amount of cards. To also answer part of your question, getting a couple of more cards can definitely raise your total credit available and help with your utlization and score. It's also nice to gain more than 1 card just to have a more solid and thicker profile and benefit from the rewards/cash/points for spending on stuff you were already going to spend on anyway.

Re: How Many Credit Cards Are Really Needed

Anonymous — Wed, 28 Sep 2016 00:51:00 GMT

Thanks austin, im guessing discover it since its no AF and revolving 5%, not sure which amex wud do me right.

Re: How Many Credit Cards Are Really Needed

Anonymous — Wed, 28 Sep 2016 00:53:53 GMT

Thanks for the input, my Util is currently 1% and i wud like to keep it there, if you charge less than 1% will it always round up and post as 1%?

Re: How Many Credit Cards Are Really Needed

austinguy907 — Wed, 28 Sep 2016 00:56:44 GMT

@Anonymous wrote:
I currently just have a NFCU Go Rewards. I maybe spend 500 a month and all of my spending is only food, mostly eating out and some groceries, although i would like to switch that around lol. I dont really spend much money and am more so trying to save money to pay for school upfront and to invest. So if i am to get another am i right to think just 1 other cc will be enough and just keep it a zero balance while still using it?

It all depends on your strategy for the next year, 3 years, 5 years, and so on. Since you don't have anything impending like buying a car / house or something that requires maintaining 750+ and inquiries don't hurt that much and would fall off at the same time. If you're going to take the hit with the new account(s) they might as well be at the same time so they age accordingly. The easiest way to gain a thicker file for down the road and maximum growth is to set a budget of 10% per card limit and just let it report and PIF through automatic payments.

Re: How Many Credit Cards Are Really Needed

Anonymous — Wed, 28 Sep 2016 00:56:51 GMT

I personally think 2 cards are the minimum "needed" by forum standards here. Is 1 enough? Yeah. Can people live with 0? Sure. 2 though is a good start, allows you higher total credit limits above just the 1 card... lets you report a balance on one and not on the other to maximize score before you apply for a mortgage one day, etc.

Re: How Many Credit Cards Are Really Needed

SunriseEarth — Wed, 28 Sep 2016 00:59:08 GMT

@Anonymous wrote:
Thanks for the input, my Util is currently 1% and i wud like to keep it there, if you charge less than 1% will it always round up and post as 1%?

Or you could pay off a balance before it posts, if you're trying to optimize. AFAIK, a non-zero balance of <1% would effectively be 1% for scoring purposes. However, 1% isn't necessarily the highest spot for scoring for all profiles.

Re: How Many Credit Cards Are Really Needed

austinguy907 — Wed, 28 Sep 2016 01:00:03 GMT

@Anonymous wrote:
Thanks austin, im guessing discover it since its no AF and revolving 5%, not sure which amex wud do me right.

Any of the Discover offerings are $0 AF and Double Cash Back / Points back on the first year of purchases.

AMEX - Everyday or Blue Cash Everyday are both $0 AF and are slightly different but the Blue has been a good bet for me at least with the 5/3/1% catagories that don't rotate

--- if you go preferred on either of them then there's a $95 AF but, you get some additional payback to compensate and with your food spending you might net a profit that supercedes the AF costs

Re: How Many Credit Cards Are Really Needed

SunriseEarth — Wed, 28 Sep 2016 01:09:21 GMT

@Anonymous wrote:
I currently just have a NFCU Go Rewards. I maybe spend 500 a month and all of my spending is only food, mostly eating out and some groceries, although i would like to switch that around lol. I dont really spend much money and am more so trying to save money to pay for school upfront and to invest. So if i am to get another am i right to think just 1 other cc will be enough and just keep it a zero balance while still using it?

A good card for dining might be worth consideration. There's always the Marvel Mastercard for 3% all dining (restaurants, fast food, bars, & caterers). They also have some other good 3% categories like book stores, toy stores, amusement parks, movies, live events. Overall, it's a good entertainment card. If you get fast food frequenly, US Bank Cash + is worth considering, since you can choose 5% on fast food (and also 2% on restaurants). They have other 5% categories that might be of use to you, like book stores or gym memberships.

I think Discover was mentioned already. They do have good rotating quarterly categories. Next quarter is Amazon, department stores, and Sam's Club for 5%. They also double your cash back for the first year, so even your 1% purchases are effectively 2%. Overall, I'm very happy with Discover.

If you wish to keep things simple, then perhaps you should only add one other card, maybe two.

Re: How Many Credit Cards Are Really Needed

SunriseEarth — Wed, 28 Sep 2016 01:11:27 GMT

@Anonymous wrote:
Thanks austin, im guessing discover it since its no AF and revolving 5%, not sure which amex wud do me right.

If you're considering AMEX, BCE might be best...no AF and 3% supermarkets, 2% gas and department stores. I'm not a great fan of how their cashback program works, but AMEX Offers can be a very good thing.

Re: How Many Credit Cards Are Really Needed

Anonymous — Wed, 28 Sep 2016 01:14:44 GMT

Remember, the three cards are necessary for optimum scoring. But many people go through life never knowing that tidbit, having less than 3 cards, and they seem to survive just fine. If you want to get the absolute highest score, get a few more cards. But your scores are already good so if you re happy with them just keep doing what you are doing.

Re: How Many Credit Cards Are Really Needed

joltdude — Wed, 28 Sep 2016 01:27:51 GMT

I go to the school of thought that... it takes 2..... 2 cards... if nothing else, it helps with utilization and its a backup for if they dont accept x card........

Also am a believer of the 3 cards is optimal for scoring purposes... If you can utilize the perks and pay in full.. even more cards than that can be useful....

My score went up after the second card reported... dipped after the third but rebounded in 3 months.....

Feel like my biggest misstep was not going for the second card sooner.. it was as if my score plateued with one card since i dont have a thick file

-J

Re: How Many Credit Cards Are Really Needed

bourgogne — Wed, 28 Sep 2016 01:34:16 GMT

@Anonymous wrote:
Based on a recent thread apparently people need 17 cards with plans to continuously app for 3-7 cards every year until their collection is complete, filled with SLs of $300-500

^^^ thanks, I needed a good laugh - I just scanned that thread and was like huh

Re: How Many Credit Cards Are Really Needed

Anonymous — Wed, 28 Sep 2016 01:46:59 GMT

I think 3 is perfect.

Re: How Many Credit Cards Are Really Needed

driftless — Wed, 28 Sep 2016 02:20:13 GMT

@Anonymous wrote:
I think 3 is perfect.

I do too. I regret app'ing for PRG.