topic Re: How many new accounts is too many? in Credit Cards

How many new accounts is too many?

Anonymous — Tue, 15 May 2018 15:07:58 GMT

I spend many hours a day reading through the myFICO forums and recently finished an app spree. My question is at what point do lenders look at a CR and say this person is a risk because they have opened X amount of accounts recently. I have had the same two CC for almost 4 years and two installment loans without tapping for any CC. I made a list of CC I would like to own and grow a total of 8 that I would use.
My list:
CapOne
Amex
Chase
Discover
Citi
Penfed
BoA
Marvel Mastercard
I had CapOne covered and just added Amex,Discover,Chase,Citi, and Penfed to my wallet in the past three weeks. I dont need or want anymore cards after I fulfill these eight. My question is will the 5 recently added accounts throw up red flags between each other and and trigger an AA? I tried getting the BoA was denied for too many new accounts/inquires so I am gardening until the end of the year to try again as I have a bunch of Inq falling off from my installment loans. I figured the BoA denial even after recon was a good sign to wait for the last two. I usually carry a $0 balance on my CapOne cards and plan to PIF every month and and grow these cards.

Re: How many new accounts is too many?

Adkins — Tue, 15 May 2018 15:12:44 GMT

Probably not. Barclays has been known to close an account after it's been opened if the person opens a bunch of accounts afterwards. Chase also does this on occasion. Since you are PIF, keeping the balances low and aren't carrying high balances I wouldn't worry about it, especially since you are planning to garden for a bit.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 15:17:33 GMT

Different lenders view the amount of new accounts on your report different ways. If you are set on those cards, it may be better to just app for the rest of them now rather than wait, as the "new accounts" likely haven't shown up yet. When doing additional apps with the other lenders, they'll see your inquiries of course, but not the accounts. Seeing only inquiries isn't as "bad" as seeing inquiries and new accounts. Also the inquiries likely are spread across bureaus, where the new accounts will be seen regardless of which one of your reports is pulled.

Also, what specific cards are you looking to take on? You mentioned things like Amex, Chase, Citi, etc. but didn't mention the actual CC product you were interested in. To me, that sounds like you aren't necessarily going after cards, but moreso lenders, possibly trying to get "in" with them. You don't want cards that "you'll use" as you put it... you want cards that you'll use frequently because they provide you with worthwhile benefits based on what you spend. If you're getting a card that you may only use once a month, chances are you aren't getting it for the right reason. Just something to think about and consider here, as I of course do not know what your overall intentions are.

Re: How many new accounts is too many?

K-in-Boston — Tue, 15 May 2018 15:19:12 GMT

Agree completely with @Adkins and @Anonymous. As long as you don't follow up all of the new accounts with lots of new balances as well, and cool your heels on the apps for a while you should be okay.

Re: How many new accounts is too many?

FinStar — Tue, 15 May 2018 15:19:57 GMT

In addition to what's been mentioned above, there's a few topics floating around that can provide some context on this OP:

https://ficoforums.myfico.com/t5/Credit-Cards/My-summer-app-spree-How-many-new-accounts-is-too-many/m-p/5037170#M1472690

https://ficoforums.myfico.com/t5/Credit-Cards/How-many-cards-is-too-many/m-p/4874127#M1422425

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 15:25:13 GMT

My initial intent was to get in with the big lenders and build a relationship I'm not interested in store cards. I am only interested in cashback cards I do not travel and I'm not interested in MR so just the cash back will do with revolving categories and such. Each offers cash back in different circumstances and that is where they become useful to me. I have a savings with Penfed so naturally it made sense to to get the CC when they HP me for the savings account but will make use of their card as well.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 17:46:00 GMT

Which PenFed card do you have? Since you said you're only interested in cashback I'm going to assume it's the PCR, which means you have 3 cards catering to general spending, CapOne QS, Citi DC and PenFed PCR, 2 of them will probably end up in the sock drawer.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 18:04:00 GMT

Yes I have the PCR which will make it way into the SD once it has matured. My penfed card wasnt on my list but I decided to open a savings account through them and after I found out they HP I went for the card same day. QS is 1.5% but it was upgraded from a platium so not much life left before there are no more CLI. My Citi DC has a SL of $500 so it will be awhile before I could use it as a daily driver. My CFU has been my go to for standard cashback rewards until I grow my Citi DC.

Re: How many new accounts is too many?

Blackswizz750 — Tue, 15 May 2018 18:04:28 GMT

Its OK to have cashback cards but analyse your spend for the year and use the card thet will get you the most back then. Having 10 Cashback cards will dilute your cash back(unless) you can spend $1000's on each card or at least hit the max with discover in its rotating categories and your BCE with the number to get a nice amount of cash back each year rom groceries.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 18:19:20 GMT

Everything I spend is run through CC then PIF at the end of the month. I have categorized my spending habits and per month and estimated what I spend yearly. I have only had CapOne cards with no categories or cash back until this past month (platinum upgraded to QS) now I am able to utilize the categories and get cashback on the new cards instead of just using my non rewards CC. I understand the dilution of cashback by having many Cashback cards but if it's the only feature that is useful to me then it is the only style of card I am interested in. These cards serve two purposes

1. They utilize the only feature I'm interested in currently (needs may change some day).
2. They get my foot in the door with the big lenders and allows me to build a relationship and grow the credit lines on their cards.

I'm am by no means interested in maintaining a bunch of cards I will never use so I took time when I made my list decided what I wanted to get out of the cards and applied for what I assumed my credit score/history would approve me so I wouldn't be wasting HP.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 18:22:12 GMT

@Anonymous wrote:
Yes I have the PCR which will make it way into the SD once it has matured. My penfed card wasnt on my list but I decided to open a savings account through them and after I found out they HP I went for the card same day. QS is 1.5% but it was upgraded from a platium so not much life left before there are no more CLI. My Citi DC has a SL of $500 so it will be awhile before I could use it as a daily driver. My CFU has been my go to for standard cashback rewards until I grow my Citi DC.

I missed CFU which makes it four catering to general spending (eventually 3 in the SD, along with secured cap1 that is 50% of your cards), why did you apply for CFU knowing you already have QS and going after DC? The logical Chase card choice should have been Freedom for its 5% category to compliment Discover.

If I were you, I would PC QS to Savor so you can get some use out of it when restaurants/fast food isn't on 5%, then I would PC FU to Freedom for its 5% category, use PCR 1.5% as your general spending card until you can raise the limit on the DC. You can also raise PCR's 1.5% to 2% by opening a Penfed checking, but you will have to maintain a daily balance of $500 or monthly direct deposit of > $500 to avoid the $10 monthly fee for the checking account.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 18:40:31 GMT

The QS came after these cards I hadn't checked for an upgrade to my platium for awhile before getting these cards. Checked back a week ago and low and behold an offer to upgrade to QS so I accepted it. However it is logical to PC cards to ones with revolving categories I applied for what I believed my scores/history would approve at the time. These cards are fresh they need a little time age. I understand there is a more logical way to maximize my Cashback rewards but having just jumped from 2 CC to 7 I think I need to rebound a bit before I start requesting changes. Am I wrong in thinking this way? I value all words of wisdom on this site as I'm still learning how to conquer my credit.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 18:59:14 GMT

@Anonymous wrote:
The QS came after these cards I hadn't checked for an upgrade to my platium for awhile before getting these cards. Checked back a week ago and low and behold an offer to upgrade to QS so I accepted it. However it is logical to PC cards to ones with revolving categories I applied for what I believed my scores/history would approve at the time. These cards are fresh they need a little time age. I understand there is a more logical way to maximize my Cashback rewards but having just jumped from 2 CC to 7 I think I need to rebound a bit before I start requesting changes. Am I wrong in thinking this way? I value all words of wisdom on this site as I'm still learning how to conquer my credit.

FU and Freedom has the same UW, you could have gone for either card and Freedom was the logical choice with DC in mind. That said, obviously you have a few signup bonus to fulfill, once that is out of the way, don't be afraid to call and ask if PC is available to you, you can probably ask for QS to Savor now since it's SDed anyway, surprised Savor wasn't a choice for your Platinum when you upgraded. Product Change is strictly internal and has no bearing on your credit profile, no need to rebound as you put it, as long as the PC option is available to you.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 19:02:55 GMT

I will definitely do that once I hit my bonus thank you so much for the advice. I would have jumped on a Savor card in a heart beat if it was offered I'll call and see if I can upgrade the new QS to Savor wouldn't hurt to ask. I wasnt sure about about the CF vs CFU UW so I opted for CFU as Citi DC wasnt originally in the line up until I got a mailer with a single APR so I figured I'd try to get my foot in the door with them and I squeaked by with a $500 SL wasnt sure if I would get denied for too many Inq but had nothing to lose at that point so I went for it glad I did. Had already been approved for CFU when the mailer showed up in my mailbox so I added it to my list of cards.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 19:11:40 GMT

@Anonymous wrote:

2. They get my foot in the door with the big lenders and allows me to build a relationship and grow the credit lines on their cards.

IMO, "foot in the door" is pretty meaningless with most lenders. I have seen no evidence that getting a card helps much (or at all) with getting the one you want later on. With much of the approval process automated, I don't think relationship type stuff is given much weight. And, going with a lender based model means a) you may be wasting time/spend/rewards with an issuer that really doesn't have stuff you will want, and b) missing smaller lenders who might have a great card for you.

When selecting a card, I pay no attention to the issuer, unless they have restricting rules, like Chase 5/24. But that's just me.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 19:22:24 GMT

Just one last thing, you get cash back match for the first year with discover, meaning 10% for rotating category and 2% for general spending, this should be your daily driver after other SUBs are met, leave some general spending for DC (pay it down early if you have to) to increase your chance of CLI down the road and take over general spending once Discover hits one year, don't waste spending/rewards on CFU's 1.5% and SD it until Freedom PC becomes available.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 19:26:40 GMT

Actually that's makes the most logical sense I will start using my Discover as my daily until after my 12 months is up Chase bonus will be met this week and PIF. This is why I love this Forum a vast wealth of knowledge. Thank you @oldman87 for your insight and pointing me in the right direction.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 19:34:48 GMT

No problem.

Re: How many new accounts is too many?

Anonymous — Tue, 15 May 2018 21:28:21 GMT

@Anonymous
IMO, "foot in the door" is pretty meaningless with most lenders. I have seen no evidence that getting a card helps much (or at all) with getting the one you want later on. With much of the approval process automated, I don't think relationship type stuff is given much weight.

I agree completely that previous positive history may not mean much with respect to an approval or denial, one thing it can impact is the potential SL of a future product that is apped for. There are some lenders, Citi is one that comes to mind, that seem to put more weight into previous history than others. For example, one may be approved for a relatively small limit on their first Citi product, but after 1 year of positive Citi "history" they are able to get approved for another product with a much higher SL. I don't think this applies to the OP at all here, as he's not apping for cards today to position himself to apply for others a year from now near as I can tell. I do think that it's worth mentioning that previous favorable history can impact terms of future approvals, not necessarily the approval (verses denial) in and of itself.

Re: How many new accounts is too many?

Gmood1 — Tue, 15 May 2018 21:42:00 GMT

I can name several where a current relationship does have some weight. Amex being one of them and Penfed being another. Nope it doesn't guarantee an approval. But it sure as heck makes things easier to get one than with no prior history with those two lenders at all.