topic Re: Why so many cards? in Credit Cards

Why so many cards?

brbmake — Thu, 13 Jul 2017 21:19:23 GMT

I am really new here, and I am enjoying reading many of these threads and learning about credit scores, but I have noticed something. Many people have their cards with limits in their signiture lines. As I have been reading them, I am amazed at how many cards people have and the total credit lines they have. Perhaps I have old information, but I was always told that having so much credit available was a bad thing (or a risk) because someone could go out and do a lot of damage quite quickly. I have 3 credit cards. Total I have about $17,200 in credit on my credit cards. Whihc, to many people here, is not much. Can someone explain the reasoning to me behind having so many cards? Thanks!

Re: Why so many cards?

iced — Thu, 13 Jul 2017 23:31:38 GMT

@brbmake wrote:
I am really new here, and I am enjoying reading many of these threads and learning about credit scores, but I have noticed something. Many people have their cards with limits in their signiture lines. As I have been reading them, I am amazed at how many cards people have and the total credit lines they have. Perhaps I have old information, but I was always told that having so much credit available was a bad thing (or a risk) because someone could go out and do a lot of damage quite quickly. I have 3 credit cards. Total I have about $17,200 in credit on my credit cards. Whihc, to many people here, is not much. Can someone explain the reasoning to me behind having so many cards? Thanks!

I can't speak for them since I myself also have 3 cards, but I would speculate that most fall into one of two buckets:

1. Churners/Bonus Chasers/Whatever You Want To Call Them

2. People who just like to have a lot of overall credit - Minor Moderator Edit - Be nice

I will also concede there's a few outliers as well who just grew into the number organically over time. As most are without annual fees, there's no harm in keeping them.

Re: Why so many cards?

Steelersboy — Thu, 13 Jul 2017 21:35:07 GMT

Well, first of all, it's so much fun! Second, it's such a rush to app! Whooooo!

Also, different cards serve different purposes. So when better cards come out or cards that benefit specific spending habits, we jump in!

My Citi DC is my favorite card, but my Chase Freedom gives me 5% back on gas and groceries in specific quarters. I shop on Amazon a lot, so my Chase Amazon Visa gives me 5% on purchases from Amazon itself or third parties fulfilled by Amazon. My BOA gives me 3% on gas and my new Amex BCE gives me 3% on groceries for most of the year when I'm not using Chase. Discover gives me 5% gas and 5% on Amazon in specific quarters. Citi can't provide those benefits over 2%.

It's all about maximizing rewards. If companies want to pay us to use their cards, who am I to complain!!!!!

Re: Why so many cards?

AverageJoesCredit — Thu, 13 Jul 2017 21:34:24 GMT

Different strokes for different folks

Some to cover rewards, others to get from the places they shop, some rebuild and get caught up in the high of approvals. The reasons are as diverse as the cards themselves. For scoring purposes you really only need 3 cards but for some 3 isnt enough while for others its perfect enough. Alot depends on your own needs and wants and goals as well.

Re: Why so many cards?

DaveInAZ — Thu, 13 Jul 2017 21:40:59 GMT

@brbmake wrote:

Why so many cards?

- Because they're there!

On a more serious note, one can do as serious damage to their personal finances with 3 cards with $17,200 in credit limit as you can with 10 cards with $100k in credit limits, depends on your income and what you spend the money on. My sister is one of the worst personal finance managers I've ever known - if she gets a new credit card she quickly maxes it out on stupid, unnecessary stuff like fancy restaurants she can't afford & doesn't need.

I have 14 cards with around $106k in CLs. I have them for 3 reasons:

1- having that much available credit makes for a better credit profile & credit score

2- Rewards: I can rotate CC use to maximize my cashback rewards - Amex for 3% on groceries, Bank of America for 3% on gas, PayPal Cashback MC for 2% on anything else.

2- Free money: With CC companies offering so many 0% offers for new card introductory and balance transfers I can use their money for free or at the most 2-3% transfer fee good for 12-18 months. I'm carrying around $6k in CC debt, don't pay a penny in interest on it, and with my $106 in credit keeps my utilization well under 10%, maximizing my credit score.

Re: Why so many cards?

Steelersboy — Thu, 13 Jul 2017 21:46:00 GMT

Example: My QS used to be my go to non-category card for all my bills. Citi DC came out and now it's my go to card.

On $100, the different is $0.50, but as spending gets higher, the rewards get wider. On a $1,000, the difference is $5, on $10,000, the difference becomes $50 and so on.

Citi DC>QS

Of course, the QS makes rewards available as soon as purchases post and Citi's become available at $25 when the statement cuts, but additional .5 makes it worth waiting.

Re: Why so many cards?

SouthJamaica — Thu, 13 Jul 2017 21:48:43 GMT

@brbmake wrote:
I am really new here, and I am enjoying reading many of these threads and learning about credit scores, but I have noticed something. Many people have their cards with limits in their signiture lines. As I have been reading them, I am amazed at how many cards people have and the total credit lines they have. Perhaps I have old information, but I was always told that having so much credit available was a bad thing (or a risk) because someone could go out and do a lot of damage quite quickly. I have 3 credit cards. Total I have about $17,200 in credit on my credit cards. Whihc, to many people here, is not much. Can someone explain the reasoning to me behind having so many cards? Thanks!

There's not necessarily any reasoning behind it; some people enjoy having a lot of cards, some don't.

Re: Why so many cards?

JamP — Thu, 13 Jul 2017 22:02:26 GMT

Diversity, utilization, AAOA, bragging rights, reward lovers, rebuilding, challenging, Never pay full price for anything (always get 2% or better back on everything), ability to close cards that we don't want anymore anytime we want, groom our credit so we can eventually have 3 to 5 cards with 20k or higher credit line each card, credit score, also use it or lose it.

What else did I miss?

I went 15+ years with no credit or credit cards, paid cash for everything. Try to buy a house or car with no credit.

With that said 3 to 5 cards is where some of us want to be eventually.

Re: Why so many cards?

K-in-Boston — Thu, 13 Jul 2017 22:44:40 GMT

My collection is a mixed bag. Some are older cards that I plan to close in the future but haven't yet due to account ages and utilization reasons. Some are bonus-seeking and will be combined into another card from the same lender. Some I have simply for balance transfer reasons (I have a LOT of revolving debt from a decade ago that I am slowly but surely paying off). My credit union cards are great for international travel since they have zero or minimal fees on cash advances, and they have no foreign transaction fees. The ones that I actually use daily are for rewards - whether it's Starwood points (or something that converts to Starwood either directly or via Marriott) for effective 3-6% back or for straight cash back/discount/statement credit (5% on Discover, Amazon, Lowe's, and Target. More for Kohl's and Best Buy). I make my credit work for me.

As for the high credit lines, it's all relative to income and spending. Imagine that I had no revolving debt (hope to make that a reality in 4 or 5 years!) - if I only had $17k in credit lines, my credit scores would be in the gutter since my average monthly spend is at least half of that, and if I needed to book a vacation for my family I'd either max out all of my credit cards to do so or I'd have to use a debit card and get zero rewards. For others, a few modest credit lines are sufficient and there's nothing wrong with that.

Re: Why so many cards?

Chickenpotpie — Thu, 13 Jul 2017 22:59:35 GMT

People look and do different things because...they can Having a bunch of cards is not my thing, for me its unsettling and I frankly hate to app. I have 4 cards and that for me is just right. My CL's are what they are because I worked to get them that way. Hell its a blessing I can because it was a long hard battle and a learning experience. And I handle it well because I'm paranoid...lol I don't like to expose myself too much, but my salary also helps

someone else may have 20 cards 200,000 + in available credit, does great with them, never had a late and they're sitting pretty above 800 on all three bureaus. If they're fine, they're fine. SOme people collect cards. Again, I don't have a problem with that, some churn for points and so on. Everyone has their own set of reasons and they have to handle it if they do something that makes thema target. (do read on you'll understand why there's some banks I won't touch with a 10 foot pole!)

A lot of people come here because they were like me; ran into some trouble and needed a cold hard push to get things going in the right direction. A lot can be learned here even if you don't have issues, trust me. Yes there are people who are app crazy. Its a high of sorts for some. Then there's people who plod along slow and steady. It takes all types I suppose, as long as you keep it all in check.

If you're not the type to run your cards to the hilt, the additional credit isn't going to be a big deal, its a nice to have, and some cards don't want to be the first to tip their hat in that direction. If you run right to the wire on credit, then, then its time to reevaluate why you have the cards you do (general you) FWIW my available credit across my cards is slightly less than 100k.

Re: Why so many cards?

Anonymous — Thu, 13 Jul 2017 23:03:04 GMT

I think because a good majority had crap credit that couldn’t finance a piece of gum (me included). It is such a crappy place to be. Once one has rebuilt it is nice knowing your worth getting in with the better banks. My recent approval for the CSP was a good feeling. Another reason I think is to spread your eggs around different baskets so to speak. With that said 4 is enough for me. I’ll eventually apply for another one to replace my crappy store card, and I’ll be set. Of course I say that now.

Re: Why so many cards?

Anonymous — Thu, 13 Jul 2017 23:38:56 GMT

For me it was finding the mix that worked for me. At one time I had a little over $240k in credit lines. I chose to close down a bunch and brought it down to a little over $140k.

None were store cards. All major cards. Just got stressed out rotating and keeping track. Having whats in my siggy is plenty and each one serves a purpose. For example, my DCU Platinum works great as a payday loan here and there. Lowest rate they offer, no fees and they love it when you use it for cash advances. I just transfer it right into my DCU checking. My Promise works the same way.

Ego has nothing to do with it. It's just getting what works and what saves me a ton of money.

Re: Why so many cards?

MrDisco99 — Fri, 14 Jul 2017 00:46:59 GMT

For me it's been mainly about diversifying card products to get the most value. I started with a $1K 1% cash back (with silly rules) card from my local bank. Then got a Cap1 QS just because I heard Cap1 was generous to people with spotty credit. Then realized my credit is actually not as bad as I thought, so I applied for a BCE because it had a killer bonus, and then figured I'd get some Chase cards before hitting 5/24 (Freedom for 5% categories and CFU to churn) along with the Citi DC because it's a great daily driver.

I only ever carry 2 or 3 cards with me at any given time. These days, the Synovus, QS, and CFU are pretty much no longer in use. But they don't cost me anything so there's no reason to get rid of them. The CFU is my highest limit (maybe I'll PC it to another Freedom) and the QS may come in handy next time I leave the country because it has no FTF. So I intend to keep them even though I hardly use them now. Right now the BCE and DC get the most rotation, but soon my 10% restaurant bonus will run out on the BCE so the Freedom will go back in the wallet along with them.

I've been wanting a decent cash back dining card so I'll probably get one of those sooner or later (Cap1 PDR or Marvel). Also at some point in the near future I plan to get some points cards to save up for a free flight for my next big vacation. So that'll be another 3 or 4 cards. While I focus on points I'll probably put the cash back cards on hold and then go back to them when I meet my goal.

So yeah, they all serve a purpose. It's not about bragging rights. I ask for advice and I offer it, but I don't really care what other people have and I don't care what other people think of what I have. I just get what works for me.

Re: Why so many cards?

Anonymous — Fri, 14 Jul 2017 01:49:29 GMT

I've deleted and/or edited several posts in this thread. Couple were non Friendly, Supportive and Respectful and several others that just quoted the edited/deleted posts. We can discuss this topic without referring to other posters in derogatory terms. If not, then the thread will be closed and other actions taken. Thank for your cooperation.

Re: Why so many cards?

woodyman100 — Fri, 14 Jul 2017 01:50:12 GMT

@SouthJamaica wrote:
@brbmake wrote:
I am really new here, and I am enjoying reading many of these threads and learning about credit scores, but I have noticed something. Many people have their cards with limits in their signiture lines. As I have been reading them, I am amazed at how many cards people have and the total credit lines they have. Perhaps I have old information, but I was always told that having so much credit available was a bad thing (or a risk) because someone could go out and do a lot of damage quite quickly. I have 3 credit cards. Total I have about $17,200 in credit on my credit cards. Whihc, to many people here, is not much. Can someone explain the reasoning to me behind having so many cards? Thanks!

There's not necessarily any reasoning behind it; some people enjoy having a lot of cards, some don't.

^^^^Me^^^^^ I don't churn necessarily because I don't have the patience for it, but I do work the rewards for vacations

Re: Why so many cards?

Viva-LV — Fri, 14 Jul 2017 02:05:17 GMT

Nothing wrong with modest profiles and limits. However, if you travel or pay for reimburseable expenses for work, you need more credit lines. For years, I had modest limits (15-20k). My needs changed with changing jobs, and had to improve my profile. Sign-up bonuses/incentives became important as did cash back offers. Relationship building with banks became a factor, as my profile grew: multiple accounts with various banks (I have 3 to 4 cards with BOA, USB and Am Ex). If your profile justifies growth, its easy to keep going: that's why you see big profiles and numbers here. I'm no longer growing my # of cards, just my limits through auto or sp cli's; found my comfort zone. Good luck, and welcome to the forum!

Re: Why so many cards?

Anonymous — Fri, 14 Jul 2017 03:05:45 GMT

Rebuilding...for me...

Really glad I was able to come back ...get in good with these banks again...and with a vengeance 😆 LOL!!

Remember to.....(some) members here you may see 100k total CL....

And they have 100k socked away....banks LOL it's a give take relationship!!!😵

Re: Why so many cards?

Anonymous — Fri, 14 Jul 2017 03:40:55 GMT

Why do you have any credit cards? I mean on charge card would be fine for renting cars and earning cash back. I started out just getting cards them getting reward cards now I am getting big sign up bonuses. I have so many cards because it makes me money. It paid for my flight to Scotland in June. Should pay for 3 flights, hotel and rental car in Orlando in October. Just charging my normal monthly expenses over 3 cards over a couple of months. Then working on family vacation to Caribean in January and then Ireland in May, Goal is to pay no airfare and hopefully have money towards hotels.

If you have a spouse with decent credit you can truely load up on sign up bonuses between the two of you.

Re: Why so many cards?

Anonymous — Fri, 14 Jul 2017 06:07:22 GMT

As has been mentioned, manufactured spending, some do it for the sport, also having very high credit limits can assist your nefarious activities.

Re: Why so many cards?

Anonymous — Fri, 14 Jul 2017 08:39:57 GMT

Short answer(encompassing the previous posts) : A number of reasons.

With that in mind, I'm not sure if anyone has differentiated the use of of credit cards vs listing them in the signature(maybe some of the deleted posts did?). We've recently had discussions on it elswhere. I think one of the threads was entitled "bragging rights", although I think it was more light hearted. I'm guessing others might to be able to offer more concise points on this than I might, and I'm working on keeping the posts the aren't about my credit shorter.

I will say that both myself and others have stated we were influenced to apply after a combination of reading enough posts on here, and whatever other factors were floating around in both our conscious and (more often, though it it wont likely be as admitted) unconscious minds.

The post above mine mentions one of the lesser admitted reasons in as few words as possible: sport.