topic Re: How do you determine how many cards is enough? in Credit Cards

How do you determine how many cards is enough?

Amwar73mf — Mon, 04 Apr 2022 22:47:04 GMT

I messed up my credit during the great recession, lost everything I owned (job, car, house, savings). Now that I've rebuilt my credit score up to the 730s, I'm getting CC offers all over the place. I have three cards now, and two of them have interest free periods I'm going to try to take advantage of. I'm just afraid I'm going to overdo it and get in trouble again.

Right now, I leave my cards at home unless I'm going looking for specific things. I try not to buy necessities with them, although I did charge my car insurance last time, but it was a new card that gave me a $200 cashback if I charge $500 in three months, so getting that made me go ahead and put the insurance on it to get that $200 off. I can definitely pay that balance off before the free interest is done.

I know I should be better about juggling my cards to get the points, but I know myself and it's so tempting to buy more than I can afford just because I have that card. I'm so scared of having to end up paying minimum payments and all that interest again because I got carried away.

So I guess I'm asking if some of you with dozens of cards feel like you have too many, and should I stop here? How do you decide when you have enough cards? I've never had more than two, and I always had that mentality to spend it up to the limit. I'm over that, and trying to stay below 30% of the limit now and pay that off before I charge more. I just don't ever want to get into trouble again.

Re: How do you determine how many cards is enough?

socalchef00 — Mon, 04 Apr 2022 22:47:34 GMT

I dont know if there is such a thing as too many cards. Some will say yes, some will say no. I personally have about 20 cards +/- and I thought I had alot but there are some members pushing 40-50+ cards.

You just have to manage it right, obviously that many cards come with time and not all at once.

You want to keep lower credit limits on cards for the low utilization, especially when you only have a few small limit cards. YOu can quickly get over 50% before you know it. The more cards you have, the easier to keep a lower over all utilization, but that also comes with the will power not to use all the credit available either.

Really depends on what your end game is.

Re: How do you determine how many cards is enough?

FinStar — Mon, 04 Apr 2022 22:46:43 GMT

The answer will vary from one extreme to the other and largely depends on the individual.

Some individuals like simplicity and/or have a minimalist approach and prefer to have 3 cards (maybe even 1 or 2), some can expand to no more than 4 or 5. Then, there are others who have in excess of that. Some have anywhere from 10, 20, 30 or greater. It all boils down to how effectively you can manage all of them, their corresponding rewards eco-systems (as applicable), your budget/finances, inactivity thresholds, etc. So, there really isn't going to be a one-answer-fits-all scenario because everyone is different and we all have a variety of different goals.

You'll know when you have too many because the 'juggling act' will become unmanageable. So, I would recommend evaluating your CC line up frequently to assess things.

Re: How do you determine how many cards is enough?

CYBERSAM — Mon, 04 Apr 2022 22:47:08 GMT

In your case I would say use only one card and set to pay full statement balance! Use your card as debit, not credit! You should not carry any balance just because you have promotional APR! You should go 0 balance for few months or years till you feel confidant carrying balance is not going to accumulate!

You should get small personal loans if you prefer to carry balance to insure payoffs!

Also if you want to use a CC, try AMEX charge cards that you have to pay full balance every month and get decent rewards back.

Ultimately is all on you how to manege your credit. Just don't put yourself in a bad situation again!

Resist the temptation!

For those of us with multiple CCs is not about buying power, it is about reward game! If you pay ANY interest on your balance then you just negated any rewards that you worked for!

Good luck!

Re: How do you determine how many cards is enough?

dragontears — Mon, 04 Apr 2022 23:09:24 GMT

You should stop at what ever number is comfortable for you.

I have 10 and every one of them has a specific spend/perk purpose; my one sister has 1 visa and a few store cards to places she shops at that gives discounts and that is all the cards she wants to deal with. There is no right or wrong number of cards to have.

From a scoring perspective, it is best to have at least 3 revolving accounts because it is believed that having 1/3 of revolving accounts with a balance is a score threshold. However, you can have a really good score with less cards.

Re: How do you determine how many cards is enough?

AverageJoesCredit — Mon, 04 Apr 2022 23:19:36 GMT

I'd say you are making progress. If the temptation is too strong then I'd say don't apply for more until you reign that feeling in. You've already started to change your mindset from max to 30% which is positive, try now only buying what you know can pay off at end of month or get in the habit of paying in full once a charge posts.

Asalluded to by @CYBERSAM some do multi cards for rewards but I'll also add buying power is just as important for those of us who don't chase rewards, no pun intended lol. I wish I could go back and never rack up debt but thankfully how I managed my credit in my rebuild allowed me to mass high enough limits to help out my family in some dire situations and only having 2 or 3 low limit credit cards wouldn't have allowed that

Re: How do you determine how many cards is enough?

Anonymous — Mon, 04 Apr 2022 23:57:42 GMT

@AverageJoesCredit raises a good point, but to my mind you must evaluate your risk. I would guess that getting into trouble maxing out large numbers of cards is possibly more likely than needing lots of credit to deal with disaster (and a "right sized" disaster at that, where the credit limit is useful!)

If you feel you are still at risk of running up cards then I would certainly:

a) limit the number of cards to a low number

b) ignore detailed credit card reward games for now, a simple flat rate card is ideal

c) don't worry that much about the details of score, yes utilization can make you score go down, but consistent ontime payments is the main driver, and util can be fixed by paying off before reporting (for now)

d) Stay out of the credit card (and approval and app) sections until you know that you are firmly in control of the cards rather than vice versa. Hearing that hgh-scoring-long-history user X has just got her 79th card with a great SUB and huge rewards can be annoying, hearing that recent rebuilder has done something similar may be too tempting

But if you are more confident, follow the other advice given!

Re: How do you determine how many cards is enough?

SoCalGardener — Tue, 05 Apr 2022 00:21:36 GMT

As you've already seen, there is no one answer for everyone. I might consider X number of cards a huge burden to keep up with, while someone else relishes the challenge--and wants more.

You're on the right track now, and the important thing is to keep your trajectory moving in the right direction. Falling into the temptation trap is a big, big problem for a lot of people. It sounds like you're well aware that you might be one of those people, so you must be super-vigilant when it comes to using credit cards.

But don't overdo it! You said you're not putting necessities on your cards, and I understand that way of thinking. But if you do it wisely, you can come out ahead by putting certain bills on CCs. I've been *strongly* in the "do not charge necessities" camp for years, but not long ago I started charging my monthly cellphone service on one of my Cap1 cards. Why? Because they offer phone protection! Just for paying my wireless bill with their card, my phone is covered for loss/damage. I pay the bill in full every month. There's no discernible difference in my bill paying--it's just that, before, I paid Consumer Cellular using BofA's bill pay, now I pay Cap1 using BofA's bill pay and they pay Consumer Cellular--and my phone is protected!

If I were you, I'd add at least 2-3 cards. Good ones. From good banks, with good perks, and good rewards. By adding more cards you're adding to your total credit limit which, in turn, reduces your overall utilization--as long as you're not running up all your cards! And I'd suggest scouring each card's fine print to see what 'hidden' benefits you may have and aren't even using. Like my cell phone coverage You may have some nice perks you're not even aware of, so definitely check that out.

When you're starting to feel overwhelmed by juggling cards, using them so they don't get closed for inactivity, making sure they're all paid on time, and so on, I'd say that's a strong sign that you have too many. Ideally, you should stop getting new cards *before* you reach that point of being overwhelmed. I highly recommend picking and choosing your cards wisely, looking at them for the long run, and don't end up with a bunch of cards that aren't great but you don't want to part with, either. Choose wisely, grow your collection slowly, check in with yourself frequently to see if you're still good with your current collection, use credit with purpose, pay on time and you should be good to go!

Re: How do you determine how many cards is enough?

Remedios — Tue, 05 Apr 2022 00:42:51 GMT

If you are using number of cards you have to control your spending, don't add any. Clearly you must have a reason for this, so until you're certain you can be disciplined without having to resort to limiting number of cards (or their limits), it makes very little sense to "experiment" with your finances and find out hard way whether you can control your spending or not.

Also, if you decide to add new cards, you can always ask your limit be adjusted (lowered) to where you feel comfortable about being able to pay it off. That way you can have card with better rewards but use the limit as your "cap"

As far as ideal number, there is no universal answer on this forum (obviously!) as various members get cards for different reasons (rewards, wants, needs, utilization, scoring hunger games, masking problems in making, "I just wanted to know if I'd get approved) etc. Cards aren't some sort of portfolio we own or something to be proud over, they are liability, and that's obvious when it's time to pay them.

If limiting number of cards helps you not go through life with yoyo debt, you're doing it right.

So, stay with what you're comfortable with, even if it's self imposed card jail. You're better equipped than any of us to asses how you'd do with additional credit, trust yourself regarding credit cards because you don't trust yourself with credit cards (it makes sense, pinky swear).

Re: How do you determine how many cards is enough?

tacpoly — Tue, 05 Apr 2022 03:27:29 GMT

Your question shouldn't be 'how many cards is enough'. It should be how well can you control your spending.

You need to change how you view credit cards if you are constantly tempted to max them out.

1. Credit cards are not money in the bank. Having a $5000 limit does not mean you can spend $5000. How much you have in your bank account is the thing that should govern your spending.

2. Develop good financial habits: do not spend more than you have. As a rule, you should pay all your credit card bills in full. Do not spend more than that. You can put every little thing on your credit card as long as you can pay off the entire bill before it's due.

3. Credit cards make your spending worse, but they are not the reason for your bad spending habits. If you use credit cards to buy things and buy more things with cash, such that you can't pay your cc bill in full when it comes, you're spending too much.

Given your current situation, it would probably be better that you not get anymore cards until you can control your spending and not be tempted to run it up.

I have 3 credit cards. I switch off using them every month. I can't be bothered to play the reward maximization game, but I selected my cards based on what I spend so I get decent reward rate anyway. I put everything on my card and enjoy the grace period the cc companies give me for paying in full -- when the statement is generated, I schedule payment a few days before the due date. Rinse, repeat. It's a simple system. Credit cards are tools (they're convenient, they provide protection & perks) and I treat them as such.

Re: How do you determine how many cards is enough?

SouthJamaica — Tue, 05 Apr 2022 03:40:45 GMT

From what you've described, you have enough cards now. Three is a perfect number of cards to get you to an 850 score some day.

Re: How do you determine how many cards is enough?

collics — Tue, 05 Apr 2022 03:42:01 GMT

I love these threads because I'll get to see how many cards Mark is up to if he responds.

Re: How do you determine how many cards is enough?

CreditCobra — Tue, 05 Apr 2022 05:39:54 GMT

For me it's become a hobby about seeing how much I can actually maximize my cash back. I pay everything in full every month. I never pay one cent in interest. At this point I have several cards, that I'll just keep open by reloading my Amazon Gift Card once a month. I don't have a single card with an annual fee, and I'd only be interested in opening a card that would fill a hole that I don't already have covered. My plan is to product change my Citi Double Cash to a Citi Custom Cash, that will fill in a hole. Right now my USAlliance Visa gets a flat rate of 3% cash back on everything, but that's only until the end of 2022. If it doesn't get extended (again) then I'll be applying for the AOD Visa Signature to fill that hole. I have my sights set on acquiring a couple Max Cash Preferred cards to cover some 5% cash back hole where I'm currently getting 3% cash back. Also, I think one of the Kroger branded cards would be a nice digital wallet card for filling in anything I missed for 5%.

Aside from trivial charges to keep cards alive, I'm getting somewhere between 3% and 10% cash back on nearly everything now, and have only a few categories where I'm planning to move the 3% to 5%.

It really comes down to whatever you're comfortable managing.

Re: How do you determine how many cards is enough?

Citylights18 — Tue, 05 Apr 2022 05:38:35 GMT

If what you are looking for by using a credit card is rewards you might just want to go with a cash back debit card that forces you into controling your spending more tightly.

The only reason why I have vacation cards like Hyatt and Marriott is because I do a fair amount of vacationing. I ran the numbers however on the CSR and you'll come away with lower prices if you are buying Hyatt/Marriott with the UR portal (plus 10x points earned per dollar). When I was moving up my credit portfolio fast I needed to wait a full year for my CSP to CSR upgrade and decided that I didn't want to wait and picked up the Hyatt card. But of course travel back then was only 3x with CSR not 10x through the portal as they are offering it now. A lot of things were a big suprise to me like upping the Freedom to 3x on dining.

Maybe just have a travel card for that specific purpose and debit card everything else.

Re: How do you determine how many cards is enough?

MarkintheHV — Tue, 05 Apr 2022 08:29:21 GMT

I keep three good ones around as I am a minimalist that is into simplicity. I keep a good Visa, MC and Amex in my wallet. This gives me all the backup I need. Three different cards, three different networks. In case one of the networks goes down or is not accepted, I have two more credit cards in different networks. I also have three different rewards structures that I can use. Right now, I am looking for a Mastercard replacement for the REI rewards card since I had an injury and my outdoor activities are pretty much nothing now. Probably after spending some time gardening (let some inquiries fall off) I may replace REI with the Citi Custom Cash. BOA visa is my everyday card due to the rewards. Amex is my travel card due to no foreign transaction fees.

I use AZEO all the time and now I never carry a balance after digging out from over 30k in credit card debt last year.

Re: How do you determine how many cards is enough?

Gollum — Tue, 05 Apr 2022 09:36:11 GMT

I think people with dozens of credit cards ~~usually~~ do not feel like they have too many credit cards.

Re: How do you determine how many cards is enough?

SUPERSQUID — Tue, 05 Apr 2022 12:02:28 GMT

I do just the opposite of you, i use my cards to pay all my regular expenses. I look at it this way, I its money i would spend anyway so why not get 1.5 - 3 pct of it back.

I think i have too many revolvers but i will close some soon. right now i am on the cusp of cli's with a few cards i want to keep and i dont want to rock the boat. ultimately i would like to keep 8 cards to use and 5 for padding. that means i need to close 4.

I think it comes down to how many you feel comfortable managing. before i retired i juggled many many projects at a time, handled payrolls, employee issues, etc in a high charged high pressure environment for decades so i am kind of bored. i am the type that could handle a very large amount of cards but 12 - 14 would be just right for me,

Re: How do you determine how many cards is enough?

Credit12Fico — Tue, 05 Apr 2022 16:18:20 GMT

yeah OP, and I'd like to know how many licks to the center of a tootsie pop too

Re: How do you determine how many cards is enough?

MarkintheHV — Tue, 05 Apr 2022 16:03:40 GMT

The owl said three

Re: How do you determine how many cards is enough?

SoCalGardener — Tue, 05 Apr 2022 18:39:09 GMT

OP, there's something I forgot to say earlier, regarding charging necessities on credit cards. As I said, if you do it carefully, you can come out ahead. A GREAT example of this is cash back on groceries! I use my Amex BCP card for all my grocery purchases, and reap its 6% cash back every month!

For something like groceries, gas, prescriptions, lunch, daily purchases that you're going to make anyway, go ahead and put them on a card--especially a card that rewards you for doing so. Pay the bill in full and you're no worse off than you would've been anyway, since these were purchases you were going to make regardless of payment method.

It's when you start buying things frivolously with CCs that you're likely to get into trouble. Someone else mentioned, and I'll second, that if you're buying things with CCs and other things with cash, you're shooting yourself in the foot. Don't let having credit available fool you into a false sense of "now I can spend a lot more!" Think of it as one or the other: either pay cash for your purchase, or pay by CC, but don't buy DOUBLE just because you can.