topic Re: Quantity of Credit Cards in Credit Cards

Quantity of Credit Cards

Kinglord — Mon, 18 May 2020 00:48:27 GMT

As I am in the recovery/rebuilding process I am struggling to understand the goal of obtaining massive amounts of credit cards. Some of the more senior contributrs here have staggering amounts of extremely high profile credit. Is this done to obtain the initial sign up offer and then have the CL help their overall utilization? Is there another reason for obtaining such a high number of them? Is it strictly just for fun, I know the feeling of approval

Please share, thank you!

Re: Quantity of Credit Cards

wasCB14 — Mon, 18 May 2020 01:25:29 GMT

At 18 cards, it starts with wanting a SUB or a set of perks. Then I end up keeping a card for some very narrow purpose.

Re: Quantity of Credit Cards

Citylights18 — Mon, 18 May 2020 01:31:55 GMT

Its called the credit card app hamster wheel.

Once you start taking out cards and racking up debt then all of the sudden 0% APR cards sound attractive to pick up.

In the aftermath usually then more cards are added to round out the lineup. I got into Chase, realized they had a 5/24 rule and decided to add cards that I knew would increase point potential after time.

Then its onto the perks and trying to squeeze as much of those as possible. When you get to this level that is when you really understand the cards.

Re: Quantity of Credit Cards

Citylights18 — Mon, 18 May 2020 01:45:14 GMT

Typical person has 3 credit cards, 1 of which are decent daily driver cards. They keep them mostly around for a "large purchase". These people get themselves into trouble and start racking up interest. Racking up interest however is okay limited quantity. It becomes problematic when it starts to become something you can't pay off for 6 months or more.

To me what I see with the people on here is they take their finances more seriously so they want the best cards and products possible. Its not a competition thing its about hunting for products. Trying to get tips. I list my point earning on here as a way to keep track of my points. All I care about is what I have, not how it compares to others.

Re: Quantity of Credit Cards

Anonymous — Mon, 18 May 2020 01:57:32 GMT

@Kinglord wrote:
As I am in the recovery/rebuilding process I am struggling to understand the goal of obtaining massive amounts of credit cards. Some of the more senior contributrs here have staggering amounts of extremely high profile credit. Is this done to obtain the initial sign up offer and then have the CL help their overall utilization? Is there another reason for obtaining such a high number of them? Is it strictly just for fun, I know the feeling of approval

Please share, thank you!

The reasons are as varied as are the people. I try and maximize cash-back options. Since there's no "perfect card," it may take many as well as multiple rotating category cards for full-year coverage. Additionally I chose a travel rewards/points system (Chase UR), but some participate in multiple. There are also low APR & Balance Transfer cards. I tend to try and avoid getting cards solely for a SUB, but if the bonus were tempting enough, I can't rule out ever doing that. My reasons are likely similar to some and vastly different from others. Bottom line, I try and make my credit work for me rather than just me working for credit. Hope that helps a little, but you'll get opinions that widely vary, only you can decide what's best for you.

Re: Quantity of Credit Cards

Anonymous — Mon, 18 May 2020 01:59:24 GMT

I'm likely in the minority. I have 4 cards with $106,700 in credit. I only had 1 through last summer but it was a pain to use when I was in Canada last summer. It had FTF and wasnt accepted everywhere I would have liked. Once I got back I decided to look into a Visa. In August I got the Chase Boundless since I'm pretty dedicated to Marriott hotels. Followed that with Chase Sapphire Reserve in September for the travel benefits. I dont travel much but my husband does. Then in October I picked up the Amex Blue Cash Preferred for the groceries and gas cash back.

There are other cards I'd like to have but I'm not a SUB chaser and I don't carry a balance so getting cards for BT isn't a thing for me. I also dont have the desire to shuffle a bunch of cards around and keep them all straight.

The only cards left on my list to maybe get one day are WF Propel and Chase Freedom Unlimited.

Re: Quantity of Credit Cards

Anonymous — Mon, 18 May 2020 03:14:41 GMT

I guess I'm also in the minority with 3 cards with ~90k credit limit. Even that is a lot, and one could easily be fine with 2 cards.

Don't spend time trying to earn an extra 0.5% or a signup bonus by applying for too many cards. All of that is lost the minute you forget to pay a bill because you have too many cards.

Save up $10,000 cash, put it in mutual fund or ETF investments and you'll easily make several times what you can make in sign up bonuses in a few months. Long term, you can easily double your initial investment in 3-4 years.

Re: Quantity of Credit Cards

Anonymous — Mon, 18 May 2020 04:18:58 GMT

This is a great question. I think i was up to about 15 cards early this year. I mostly go them for the sign up bonuses or to expand my relationship with a new lender.

This year, probably due to the economic crisis, I decided to reassess. I've started closing cards that had annual fees and have actually applied for a couple of new cards with no annual fees - before this change I was paying about $2k/year on annual fees, I know, ridiculous! I've started focusing on 5% cash back cards and have 4 that have rotating categories and complement each other really well. My current goal is to maximize the amount of cash back from transactions - I am then putting that revenue into paying down debt (car loan, heloc), saving and investing.

Re: Quantity of Credit Cards

coreysw12 — Mon, 18 May 2020 05:36:37 GMT

For someone rebuilding, it seems that 3 is the magic number. Your scores will benefit a lot from having 3, versus only 1 or 2. More than 3 doesn't benefit a rebuilder much unless they carry a balance and want to lower their utilization.

Most people who have more than 3 cards, got each one for a specific purpose. Often, that purpose is collecting points or cashback, signup bonuses, or getting certain other benefits like discounts at stores. People who chase these rewards are often the ones who end up with 15+ cards. There's not really any other reason to get so many cards, it doesn't typically help your score much - you can still get an 850 with only 3 cards.

One other benefit from having tons of credit accounts, is that your average account age will be largely unaffected by opening new ones or closing old ones. Someone who only has 3 cards will have to really think hard about whether or not they want to take the massive hit to their AAoA by opening a new account or closing one of their existing ones, whereas someone who has 45 cards couldn't care less.

Re: Quantity of Credit Cards

Mv350 — Mon, 18 May 2020 07:30:03 GMT

It went from rebuilding to a hobby. It's fun for me. The more hobbies I have, the more sanity I keep intact.

Re: Quantity of Credit Cards

Gmood1 — Mon, 18 May 2020 10:59:15 GMT

For me it started out as rebuilding.

And as @Mv350 states it has become a hobby.

And as @coreysw12 said.

Because of so many accounts. My scores are largely unaffected by closing or opening CCs now.

I can open two or three at a time.

Scores may not move at all.

Also as others have said, 3 is all you need to build credit.

Ultimately the choice is yours whether to add or close tradelines.

As long as your scores continue to rise and debt stays in check. Doesn't matter if you have 3 or 80.

All that matters is, you take interest in maintaining it.

Re: Quantity of Credit Cards

Anonymous — Mon, 18 May 2020 11:36:19 GMT

@Citylights18 wrote:
Its called the credit card app hamster wheel.

Once you start taking out cards and racking up debt then all of the sudden 0% APR cards sound attractive to pick up.

In the aftermath usually then more cards are added to round out the lineup. I got into Chase, realized they had a 5/24 rule and decided to add cards that I knew would increase point potential after time.

Then its onto the perks and trying to squeeze as much of those as possible. When you get to this level that is when you really understand the cards.

Called that by who! I don't know if those stages are true for many people, but I think a number of us start at your last stage, collecting for the perceived perks, without having gone through the first.

Re: Quantity of Credit Cards

Anonymous — Mon, 18 May 2020 11:41:38 GMT

@Anonymous wrote:
I guess I'm also in the minority with 3 cards with ~90k credit limit. Even that is a lot, and one could easily be fine with 2 cards.

Don't spend time trying to earn an extra 0.5% or a signup bonus by applying for too many cards. All of that is lost the minute you forget to pay a bill because you have too many cards.

Save up $10,000 cash, put it in mutual fund or ETF investments and you'll easily make several times what you can make in sign up bonuses in a few months. Long term, you can easily double your initial investment in 3-4 years.

You can also do both: providing your SUB spend is on purchases you make anyway (or MS if needed!) you can still save. You can easily double your investment in the stock market except when you can't, and at least on paper a 50% decline in the value of your investments is much worse than forgetting to pay a bill (which you don't do because they are set on autopay to PIF on due date)

Also, a late fee is less than $50 in most cases, and a few days interest will be at most a few dollars, so even if you do miss one, it certainly doesn't wipe out even one decent SUB. So no need to knock one method in favor of another. There is room for all.

Re: Quantity of Credit Cards

kdm31091 — Mon, 18 May 2020 12:15:59 GMT

Generally 3 cards are a good foundation for building your credit history. There is not a credit scoring reason to have more than 3-5 cards. Many people enjoy having a dozen or two dozen or more cards to maximize rewards/benefits and if you're keeping on top of everything, no harm done. Your score is not penalized for too many accounts.

The one thing to keep in mind is that the more accounts you have, you tend to dilute your benefit/rewards, and it becomes harder to earn any substantial reward on one account. Some people don't mind this, but something to keep in mind.

Re: Quantity of Credit Cards

Remedios — Mon, 18 May 2020 13:33:46 GMT

I dont have "that many" opened accounts by standards here, 13 or 14.

My rewards are not diluted, because of my spend. Never racked any debt, and I doubt I ever will

I currently have at least three cards on 0%, without balances, because 0% wasnt why i got them.

@Kinglord whenever this question is asked, you get two kinds of answers, one being "I have as many as I want, works for me", and "No one needs more than 2-3 cards, look at the real world etc"

If people in real world knew what they were doing, they would have more than 3, but probably not 15.

There is no right or wrong answer, and no number that's going to work for everyone.

I dont see it as a game or hobby. To me, it's a financial tool, and I treat it as such.

Re: Quantity of Credit Cards

kilroy8 — Mon, 18 May 2020 13:50:34 GMT

For me, it started as building my credit scores up, then became about nice SUBs and catback. I hit a spot 2 years ago where I came very close to getting maximum catback for my spend, and stopped getting more. Half a percent or even 1% more isn't enough incentive to get a new tradeline at this point.

I might eventually cave for a really big SUB, but only if I can easily do the required spend.

Never did the BT shuffle, and hope to never start. I do take advantage of the occasional 0% offers or no fee purchases.

Re: Quantity of Credit Cards

Nomad3 — Tue, 19 May 2020 16:45:53 GMT

I have a spreadsheet that has the next 5 years planned out to get the cards I want while my closed auto (only installment) is still reporting, tracking AAoA and assumed INQ's hitting all 3B to stay under Chase's 5/24 and spaced out to not trigger AA

7 more cards, 1 mortgage and 1 auto. Then I won't "need" anything.

Diversifying credit between lenders so as to futureproof from possibility that one lender might go under, or slash limits, or close all accounts (5/3, synch, etc recently reported by others)

Re: Quantity of Credit Cards

Shooting-For-800 — Mon, 18 May 2020 15:41:01 GMT

Utilization

Flexibility

Different networks (Amex, Disco, Visa, MC)

Different rewards (gas, dining, travel, groceries, etc.)

0% Promos

SUBs

Eggs not in same basket

Addiction

Re: Quantity of Credit Cards

M_Smart007 — Mon, 18 May 2020 15:47:13 GMT

And here I though most myFICO'rs were shooting to be diversified like the fortune 500 index

I do need to edit this: Quality over Quantity

Re: Quantity of Credit Cards

KJinNC — Mon, 18 May 2020 16:06:40 GMT

I don't consider myself a very senior contributor here, but to answer the question, I have 13 to 16 cards, depending what you count.

13 bank cards in my name

+1 store card

+1 authorized user card

+1 corporate card

I wasn't able to get everything I wanted early on, so I got the closest thing I could, and in some cases, I now have duplicative cards that I plan to close eventually. This applies to Delta Gold and, in a sense, Hilton Aspire.

Also, I got an Apple Card that I regret opening, because of the SP approval. I'm a big fan of how they approve cards, but, the card itself serves no purpose for me, so I'm planning to let it go over 12 months and then close it.

And, I have a card from my local CU (Coastal) that I opened because it was the only Visa Signature I could even sniff at the time, but today, its benefits are mostly replaced by the Costco card. I may keep it simply due to my relationship with the CU or I may close it, haven't decided. One thing I will say on this card's behalf is that at the end of 2019, I got a "loyalty payment" that looked suspiciously like a match of my cash back for the year. If that's the case, it wouldn't be a 3-2-1 (gas/warehouse/everything) card, but a 6-4-2 card ... if so, it's better than my Costco card AND equal to my PPMC, but if the loyalty payment is fixed, that's not the case. I need to figure that out.

I have a Navy Federal card that I don't really need that I opened as a ploy to help me get a NFCU Flagship card in the future.

So, that is five of my 13-16 cards. As for the other eight, I have them mainly because they fill niches in my spend. The exception is Amex Platinum, which I have for status/lounge access (or for 2020: paying for streaming services). I don't get cards only for the SUB, though that is a plus.