topic Re: How do you guys handle having multiple cards? in Credit Cards

How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 15:49:31 GMT

Greetings MyFico’ers!
I joined this forum at the top of the year and believe I’ve learned a lot. Last year, my credit was in the tank and today I’m over 700 on each bureau.

What I noticed about people here that’s different than the people I know in real life is that most people around here seem to collect cards. Before I got here, I thought I only needed one good, high balance card for every thing. I see most of the popular posters here have around 20.

I just got 3 cards this week and now I’m wondering how can I use them properly. So my question to all of you is how do you use your cards? Do you just replace your bank debit card with one of your credit cards to earn points and cash back?

I’m trying to learn from the best.

Re: How do you guys handle having multiple cards?

mkhan1093 — Thu, 02 Aug 2018 15:56:48 GMT

Hi Bigdaddy003,

A belated welcome to the forums, and congrats on raising your credit score! I can only speak for my practices but I'm sure others here have similar stories. For all my cards, I have them set to autopay so I never miss a payment ever. I never use my debit card, and the only reason it's even in my wallet at this point is for emergencies because you don't want to withdraw money from a credit card *ever*! For making purchases, I simply use the card that offers the best value back, be it in cash or in travel points. My go-to's are the Chase Sapphire Reserve, Chase Freedom, Discover it and Amex SPG cards for their respective categories because the value can't really be beaten. Then there are the cards I pull out every now and then like the Amex Platinum or PRG when I can get a good deal. Other cards I keep alive every once in a while just for the credit history. For me, it's all about knowing the earning potential for each card and knowing what's best to use when (and then having autopay to make sure I'm not delinquent because it's cumbersome to remember 20 due dates)

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 15:59:56 GMT

Well, I think first that you need to analyze your spending patterns.

In other words, what categories, i.e., groceries; gas; travel; dining; etc. do you spend the most on? Your credit cards should reflect those categories. Then I would pick the two or three best and use those. I would only carry those cards that reflect what you charge on a daily or frequent basis. In my case, I use my AMEX Blue Cash Preferred for 6% groceries and 3% gas, and Citi Double Cash for 2% on everything else.

I also have Chase Freedom and Cap One Savor which are in my sock drawer.

I cannot warn you enough about using debit cards. If you lose one or have it stolen, a thief can drain your bank account and you will jump through hoops to get your money back from the bank. I know, because my sister-in-law has gone through it -- twice.

Good luck !!!

Re: How do you guys handle having multiple cards?

Manonfire — Thu, 02 Aug 2018 16:20:03 GMT

@Anonymous wrote:
Well, I think first that you need to analyze your spending patterns.

In other words, what categories, i.e., groceries; gas; travel; dining; etc. do you spend the most on? Your credit cards should reflect those categories. Then I would pick the two or three best and use those. I would only carry those cards that reflect what you charge on a daily or frequent basis. In my case, I use my AMEX Blue Cash Preferred for 6% groceries and 3% gas, and Citi Double Cash for 2% on everything else.
I also have Chase Freedom and Cap One Savor which are in my sock drawer.

I cannot warn you enough about using debit cards. If you lose one or have it stolen, a thief can drain your bank account and you will jump through hoops to get your money back from the bank. I know, because my sister-in-law has gone through it -- twice.

Good luck !!!

I'll definitely echo this. Credit cards with a lock feature are also a plus in my book. My Cap1, Discover cards offer this feature and i always have them locked to prevent any fraud, and believe me, its saved me a couple of times. I wish Chase and Amex would offer this. Not sure why they dont. I was reading Wells Fargo is going to offer it on their credit cards sometime in 2018. So that will come in handy for my new Propel card.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 20:52:13 GMT

Thank you all for the replies. As you can see I’m very new to this credit stuff. So at this point in my credit career, I only have the cards that lenders had me prequalified for: Amex Blue Cash, Amex PRG, and the Cap One QuicksilverOne. All I do is buy groceries and gas so I thought the Blue Cash would be ok for that. Everyone said to get a charge card the same day so I did that too. I really want to start traveling more than I do and since I now have credit and some decent cards to use, I can. I’m still trying to figure out how best to use that QuicksilverOne card though.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 16:40:12 GMT

Just like previous posters, I use my cards based on maximizing rewards, the only time I use debit card for a few dollar charge here and there is to satisfied debit card requirement for my high rewards checking account.

As for management, after experimenting with AZEO for a while last year, all balances now posts to statement and everything is set to autopay on due date so very little management is needed. I do however use Mint because I have 10 open cards, 20+ bank accounts and a few investment accounts, I get to monitor all my accounts with 1 single Mint log in for any funny business, I also get Mint alerts for any irregular or large transactions.

Re: How do you guys handle having multiple cards?

Felony_Phil — Thu, 02 Aug 2018 16:38:46 GMT

I once read on here that every card has a job to do. Another bit of advice is that if the billing cycles get overwhelming, call and have the cycles moved to your liking. I get paid twice a month so I had to move mine so I could put an additional payment in before it reports... that's just me though.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 18:48:32 GMT

I think there are a handful of different questions behind the question as to how ppl use them properly. I’ll break some of those down in Q&A format.

How do you ensure you never miss a payment?

Turn on auto-play (full statement balance) and never spend beyond what your checking account can handle, to avoid OD fees. If you’re intentionally carrying CC debt on any card(s) turn on min-payment auto pay ONLY on the card(s) intentionally carrying a balance, and make additional payments manually as necessary.

How do you ensure none are ever closed for inactivity?

It depends on how many cards you have & why you’re keeping them open. For your most useful cards, this isn’t a problem because you use them regularly. If your oldest CC account is no longer very useful to you apart from your AAoA, put a recurring payment on it. For other cards that have lost their usefulness for you, you may not necessarily care if they are closed; you may even close them yourself. However, if you really want to keep them, you can schedule 6-month reminders to use them on your next swipe, whatever it is, in your calendar or in a spreadsheet.

How do you maximize CC rewards?

This is a big topic that depends on your answers to some questions #1 What are you spending habits, particularly your travel habits? #2 How many cards are you willing to use regularly? (the marginal increase in rewards for carrying an additional card can get very small very fast, but that doesn’t stop some ppl) #3 What cards are available to you, based on credit score, geographical location & banking history? (Banks often favor customers with whom they’ve built a relationship, but if you burn a bank they’re unlikely to work with you again for a very long time, reguardless of score) #4 What are you willing to do to optimize those rewards? Banks sometimes offer CC holders small incentives to use their other products or to use affiliate products.

I recommend the following regarding rewards: if you travel a lot, shoot for the “Chase trifecta” of CF, CFU & CSP or CSR. This will cover general purchases, travel, & dining. Alternatively, if you don’t spend much traveling, I recommend a 2% or 1.5% general purchases card, the Uber Visa (4% dining, 3% travel, 2% online), the Amex BCE or BCP (depending on grocery spending) and a 5% rotating card (Discover and chase offer essentially equivalent options). Additionally, if you frequently use a particular store, their card is worth considering (Citi Costco or Chase Amazon for example).

It goes almost without saying, but chasing rewards is only worth it if you’re not paying interest & most of us do at some point. It’s also not worth spending too much time and energy doing (I’ve researched this stuff because it’s interesting to me, but in terms of rewards dollars/hr spent, I’d have been better off with minimum wage). Pick 3-5 cards, reevaluate your choices every couple years or if your spending dramatically changes, and call it good enough.

I’d also like to add that, in my view, it’s easy to get addicted to the feeling of getting an app approved or getting a CLI. It’s important to remember credit cards are tools, just like your work truck or your computer. Take care of them as necessary by getting 3-5 that fit you, but don’t get carried away apping for cards you aren’t going to use.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 17:03:40 GMT

My regimen is pretty simple: AMEX BCP for groceries, CitiCostco for gas and Costco runs, Citi DC for most everything else, Discover for whatever their 5% category happens to be and AMEX Delta Gold for flights. When I travel I carry a couple of backup cards too, BofA Cash Rewards and whatever else looks like it needs to get some potential use.

As far as paying, my wife and I sit down every Sunday evening, watch Beachfront Bargain Hunt and whatnot on HGTV and pay the week's bills. It's our little ritual. She keeps everything on a legal pad, written in pencil.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 17:16:57 GMT

I forgot to answer one of your original questions: yes, replace your debit card with your credit cards. It’s weird to get used to, but treat it as if they’re equivalent, except with a CC the money doesn’t immediately leave your bank account, you often get additional purchase protection & you get paid (a minuscule amount) to use them. Obviously, don’t spend a dime extra to get rewards. That’s the psychologically difficult part.

if it helps psychologically, you can actually pay you CC issuer as soon as your charges post via their apps. It’s not nessessary (unless you’ve maxed the card out) but it can help you think of the CC the same way you think of a debit card.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 17:16:43 GMT

Ok wow, everyone has their own way of dealing with it. I guess the lot of you who let balances report to the bureaus on different cards see your credit score fluctuate pretty often, right?

I’m going to find some everyday uses for the cards I have. I’m not going to change how I live my life because I now have cards, I’ll just switch the debit for a credit.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 17:18:09 GMT

If you're someone who isn't good with managing your accounts, no need to have more than 10 cards (even 10 is alot). No need to collect cards just cause you can and your score ables you to. Apply for cards that you will benefit from. And I personally don't think its a smart idea to replace your debit with credit cards. Having credit cards will make you believe you have the money you don't have and may change your spending habit. It maybe smart to use cc for large purchases to maximize points (that's if you can pay that purchase), but for small everday things its best to use cc because those small little things add up and are harder to keep track off until you receive your statements.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 17:21:06 GMT

Even when balances report it doesn't seem to generate much day-to-day fluctuation for me...and I don't worry too much about it unless I'm trying to maximize my score to get a home loan or something big like that. My numbers seem to hover in the 730s and 740s, which is good enough for anything I'm trying to do. As long as my gross utilization stays under 10%, I'm good.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 17:21:51 GMT

Small balances (less than 8.9% of limit) reporting doesn’t actually make your score fluctuate too much (except when you have a SUPER thin file, like just 1 card). Obviously you REALLY want to avoid large balances reporting for score maximization. To really dive into this topic, search the credit scoring topic for “AZEO” which means all zero except one. The tldr is to do that right before applying for new credit, but otherwise no worry so much.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 17:29:00 GMT

I’ve been using AZEO all year while waiting on my new home to close. (We closed on Tuesday) This month has been the first time I’ve had over a 700 credit score and the ability to get cards. I apped 3 this week so I’m trying to get some advice on how you guys use these cards. I believe at least 2 of these cards have those 3 months spend requirements so I wondered do people in this forum just swipe their credit cards for everything I typically used my debit card and cash for to meet these obligations.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 18:20:58 GMT

@Anonymous wrote:
Ok wow, everyone has their own way of dealing with it. I guess the lot of you who let balances report to the bureaus on different cards see your credit score fluctuate pretty often, right?

@Anonymous not really, 4 months ago when I ended my AZEO experiments @ 3 out of 8 accounts reporting small balances (UTI 1%), my scores were Ex806, TU804 and EQ805. Last cycle I had 7 out of 8 cards reporting @ 4% UTI, my EX remained at 806, EQ dropped to 802 and TU dropped to 798. This cycle I still had 7 out of 8 cards reporting but my PenFed reported $2700 balance @ 28% due to a few bank account initial fundings (7% aggregate UTI), Ex dropped to 803, TU dropped to 792 and I haven't checked EQ yet. I suspect TU is probably more sensitive than others when it comes to percentage of accounts reporting as well as individual UTI.

Even if the score had fluctuated more it wouldn't matter, it's all temporary and can be gained back easily prior to major loan applications like mortgages or car loans. I certainly wouldn't pay a day earlier than necessary and sacrifice 4% APY from my payment checking account through grace period just to maintain highest possible score for no good reason.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 18:19:22 GMT

@Anonymous wrote:
I’ve been using AZEO all year while waiting on my new home to close. (We closed on Tuesday) This month has been the first time I’ve had over a 700 credit score and the ability to get cards. I apped 3 this week so I’m trying to get some advice on how you guys use these cards. I believe at least 2 of these cards have those 3 months spend requirements so I wondered do people in this forum just swipe their credit cards for everything I typically used my debit card and cash for to meet these obligations.

Generally, people here will use the cc for everything, even when not meeting minimum spend. (With obvious exceptions, such as when the merchant doesn't take cards, or there is a too big surcharge for using cards, such as with utilities in some places).

Debit cards should only be used when needed for rewards checking (and as part of MS, but not discussed here!) and even then, I would leave them at home and meet the requirements with gift card reloads on Amazon. If your bank has an ATM card that is NOT also a debit card, that's worthwhile for emergencies when you need cash.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 18:26:10 GMT

@Anonymous wrote:
I suspect TU is probably more sensitive than others when it comes to percentage of accounts reporting as well as individual UTI.

A little off-topic, but does someone really know if the CRBs differ? My impression was that FICO8 (say) was a standardized algorithm, run against the data held by each bureau, and any differences are due to the different data rather than by customization of the algorithm.....

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 18:39:05 GMT

@Anonymous wrote:
@Anonymous wrote:
I suspect TU is probably more sensitive than others when it comes to percentage of accounts reporting as well as individual UTI.

A little off-topic, but does someone really know if the CRBs differ? My impression was that FICO8 (say) was a standardized algorithm, run against the data held by each bureau, and any differences are due to the different data rather than by customization of the algorithm.....

I honestly do not know other than going by my data point, TU does have 1 more scorable HP than others but that HP happened 3 months ago and my TU didn't drop then.

Re: How do you guys handle having multiple cards?

Anonymous — Thu, 02 Aug 2018 18:42:14 GMT

Edit: never mind

I believe old man was referring to the actual data on his TU report making his tu more sensitive, meaning that his tu file is thinner because something isnot reported there.