topic Re: Should I add more cards? in Credit Cards

Should I add more cards?

kyle7610 — Tue, 22 Mar 2011 23:51:09 GMT

Hi all. First post.

I'm looking for advice on adding credit card accounts and building credit history.

A little about me:

- Currently have one credit card (Discover More). The account has been in my name only for almost two years, although the account age is almost a decade due to me being listed as an authorized user when my mother had an account. The current limit is $4000 after Discover raised my limit from $1250 a few months ago.

- Just applied and was a approved for an AMEX Blue Cash Card. I selected it largely because it rewards two things (gas and groceries) that I spend a large portion of my income on. I was just approved a few days ago, so I won't know my limit until the card arrives in the mail. I figured that I was likely to be approved because I received a notice for pre-approval for an AMEX Gold Card a few days prior to my application.

- I'm unsure of my current credit rating, however, when I recently re-financed my car loan and my Experian score was pulled, it came back as 776. After removing several errors from my Equifax reports, I have no negative accounts/information on any report. No late/missed payments, collections, judgements, etc.

- In total, I currently have one credit card (with another on the way), a very small student loan, and a car loan on my credit report. All paid, current and never late.

So, with that, my main question is whether I should be applying for more cards, or leave it at two for now? I figure that I'll add more cards at some point, but I don't know if now would be a good time to open accounts and get more established, seeing as how I've only had one to myself for not even two years. After the Discover that I currently have and the AMEX I was approved for, does anyone have any suggestions for another card, if at all?

I was contemplating applying for a Visa, possibly the Capital One VentureOne card (no annual fee air miles card). If I do, I would be looking to apply quickly, just for the sake of keeping the apps relatively close and the inquiries coming off at the same time.

Any advice? Thanks in advance.

Re: Should I add more cards?

aftermath — Wed, 23 Mar 2011 00:02:07 GMT

Both of your cards consist of the "least" accepted card "networks" by retailers. It is a good idea to have a VISA or MASTERCARD as backup. I would go with something that has a good cash back rewards programs such as Chase Freedom or better yet, a Penfed Visa Platinum Cashback Rewards.

Re: Should I add more cards?

DI — Wed, 23 Mar 2011 00:03:29 GMT

I'm a bit confused. Is the Discover account your account or are you just an AU? If you're just an AU, you should try applying for one with Discover first. Regardless, you should apply for about 2-3 more cards. Some like to apply all as once so that the accounts can age at the same time. And some like for their inquiries to all fall off at the same time. to they apply all at once too.

Re: Should I add more cards?

Anonymous — Wed, 23 Mar 2011 00:36:05 GMT

5 cards seems to be a good number. I would go 4 majors and 1 store card (choose a store that you really like). Don't really need more than that. Agree with DI re: apping all at the same time. Shoot for:

- 0% APR for 6 - 12 months, $0 annual fee, lowest interest rate, rewards you can use

Re: Should I add more cards?

kyle7610 — Wed, 23 Mar 2011 00:28:47 GMT

Sorry if I was vague about the Discover. I was added as an authorized user in 2001 when she opened the account. I continued to be an authorized user up until late 2008 when she passed away. After that, the account was closed. However, I applied for my own card with Discover less than a year later and was approved.

So, in total, I've been on the account for about 10 years. However, I have been the account holder (not an authorized user) for just about 2 years. The age of the account kicked back to 2001 when it was established after I applied for myself in 2009.

In reference to the cards, I figured that at least a Visa should be in order. I just don't know whether to space it out, or just get it over with and apply now, adding inquiries and possibly risking a denied application. Although my credit rating should be pretty good, and I don't plan on applying for a mortgage/loan any time in the near future (at least a year), I don't know If I should just coast with the Discover and AMEX for a while before I apply for more. I don't want to appear desperate for credit, because I'm not, but I also figure that I'm young, and establishing/building credit could serve as a viable explanation for multiple inquiries at once.

Since I'll probably be covered with Cash Back (AMEX will probably be my primary card until the 5% kicks in), I was going to look for an miles reward Visa, since my hopeful next job will periodically take me out of the country.

Re: Should I add more cards?

Anonymous — Wed, 23 Mar 2011 02:31:03 GMT

@aftermath wrote:
Both of your cards consist of the "least" accepted card "networks" by retailers. It is a good idea to have a VISA or MASTERCARD as backup. I would go with something that has a good cash back rewards programs such as Chase Freedom or better yet, a Penfed Visa Platinum Cashback Rewards.

Re: Should I add more cards?

Anonymous — Wed, 23 Mar 2011 02:35:28 GMT

@Anonymous wrote:
5 cards seems to be a good number. I would go 4 majors and 1 store card (choose a store that you really like). Don't really need more than that. Agree with DI re: apping all at the same time. Shoot for:

- 0% APR for 6 - 12 months, $0 annual fee, lowest interest rate, rewards you can use

Re: Should I add more cards?

Anonymous — Wed, 23 Mar 2011 02:38:12 GMT

@kyle7610 wrote:

Since I'll probably be covered with Cash Back (AMEX will probably be my primary card until the 5% kicks in), I was going to look for an miles reward Visa, since my hopeful next job will periodically take me out of the country.

Good Idea!! Choose a card carefully ~

Re: Should I add more cards?

Anonymous — Wed, 23 Mar 2011 03:05:06 GMT

@kyle7610 wrote:
Sorry if I was vague about the Discover. I was added as an authorized user in 2001 when she opened the account. I continued to be an authorized user up until late 2008 when she passed away. After that, the account was closed. However, I applied for my own card with Discover less than a year later and was approved.

So, in total, I've been on the account for about 10 years. However, I have been the account holder (not an authorized user) for just about 2 years. The age of the account kicked back to 2001 when it was established after I applied for myself in 2009.

In reference to the cards, I figured that at least a Visa should be in order. I just don't know whether to space it out, or just get it over with and apply now, adding inquiries and possibly risking a denied application. Although my credit rating should be pretty good, and I don't plan on applying for a mortgage/loan any time in the near future (at least a year), I don't know If I should just coast with the Discover and AMEX for a while before I apply for more. I don't want to appear desperate for credit, because I'm not, but I also figure that I'm young, and establishing/building credit could serve as a viable explanation for multiple inquiries at once.

Since I'll probably be covered with Cash Back (AMEX will probably be my primary card until the 5% kicks in), I was going to look for an miles reward Visa, since my hopeful next job will periodically take me out of the country.

This is an excellent reason to go for the Capital One. They have 0% foreign tranaction fee.

Re: Should I add more cards?

Anonymous — Wed, 23 Mar 2011 03:20:52 GMT

@Anonymous wrote:

@kyle7610 wrote:
Sorry if I was vague about the Discover. I was added as an authorized user in 2001 when she opened the account. I continued to be an authorized user up until late 2008 when she passed away. After that, the account was closed. However, I applied for my own card with Discover less than a year later and was approved.

So, in total, I've been on the account for about 10 years. However, I have been the account holder (not an authorized user) for just about 2 years. The age of the account kicked back to 2001 when it was established after I applied for myself in 2009.

In reference to the cards, I figured that at least a Visa should be in order. I just don't know whether to space it out, or just get it over with and apply now, adding inquiries and possibly risking a denied application. Although my credit rating should be pretty good, and I don't plan on applying for a mortgage/loan any time in the near future (at least a year), I don't know If I should just coast with the Discover and AMEX for a while before I apply for more. I don't want to appear desperate for credit, because I'm not, but I also figure that I'm young, and establishing/building credit could serve as a viable explanation for multiple inquiries at once.

Since I'll probably be covered with Cash Back (AMEX will probably be my primary card until the 5% kicks in), I was going to look for an miles reward Visa, since my hopeful next job will periodically take me out of the country.
This is an excellent reason to go for the Capital One. They have 0% foreign tranaction fee.

It really adds up if you get charged with 2~3% on every purchase you make in foreign countries.

Kyle, Enjoy the trips!!

Re: Should I add more cards?

creditguy-378 — Wed, 23 Mar 2011 20:11:38 GMT

you should go with the capital one they are really good at giving great limits and there is NO Foriegn Trans. FEE and that is great that will save you 3 to 5%

Re: Should I add more cards?

vish1 — Wed, 23 Mar 2011 21:16:52 GMT

@creditguy-378 wrote:
you should go with the capital one they are really good at giving great limits and there is NO Foriegn Trans. FEE and that is great that will save you 3 to 5%

What is the source of this info? IMO and based on what we hear on the forums often, CAP1 is stingy with limits (they are OK with their venture card but not great).

If the OP is expecting to be traveling a lot and as he has good scores, OP may want to look at Chase BA which is from a much better bank, has no foreign transaction fee and has 50k bonus miles.

Re: Should I add more cards?

kyle7610 — Thu, 24 Mar 2011 00:38:59 GMT

Hmmm.....

Applied for the Capital One VentureOne a few moments ago. Denied. No specific reason given. Advised that they would follow up in writing in a couple of weeks to further explain why.

Not sure what the deal is. Maybe the recent inquiry with AMEX for the Blue Cash? I re-financed a car loan through a different lender at the beginning of this year. Perhaps a lack of history?

I'd kinda like to ask for reconsideration. The credit limit is not important to me. I'm fine with working my way up in the world. Can anyone suggest when would be the appropriate time to call and speak with someone? As I said, I have no negative information on any bureau report, so I'm thinking the the reason behind the denial may be a lack of history/thin credit file.

Re: Should I add more cards?

kyle7610 — Sun, 27 Mar 2011 22:02:42 GMT

A little update:

- As it turns out, I guess I was not denied by Capital One. I wasn't instantly approved (which their wording seemed to imply was a denial), however, a phone call to their appstatus line revealed that my app is still being reviewed. It's been that way for a few days, so I don't know when I'll get the final decision. I just got a pre-approval notice for a Cap One Platinum MC today, so I think I may have a fair chance of approval for the card I applied for.

- Was approved for Blue Cash with a $2000 limit and a Chase Freedom MC with a $1500 limit (Neither is official yet as I haven't received the cards)

My credit card "roster" now looks like this:

Discover More - $4000

-and the new cards-

AMEX Blue Cash - $2000

Chase Freedom MC - $1500

Capital One Venture One - Under Review & Awaiting Notification

So, in light of this, should I just stay put for a while? I'll probably apply for a Visa of some sort if the Cap One app is denied, but other than that, I couldn't think of anything glaring that would be beneficial. I don't really frequent any one retail store right now to benefit from a store card. I also don't plan on making any large purchases or carrying a balance any time in the near future, so a lot of these extended 12-21 month 0% APR offers really are of no use to me right now .

Any advice? Thanks in advance.

Re: Should I add more cards?

Anonymous — Sun, 27 Mar 2011 22:07:23 GMT

Congrats on the new approvals!!!

I would sit back and wait for Cap1 to make a final decision regarding the Venture card before doing anything else. Good luck, and I hope that you get it!

Re: Should I add more cards?

kyle7610 — Wed, 30 Mar 2011 00:59:15 GMT

Okay, another update:

- Received word from Cap One. Denied. Cited insufficient accounts, lack of credit history, lack of utilization of the one I have (which I feel is laughable), and too many inquiries (I've applied for 3 credit cards including the Cap One in about a week's time).

- I think I'm going to try my best for a recon with Cap One, since I already have the inquiries to show for them. They pulled all three bureaus, which seemed like insult to injury, but only cited Experian and Equifax in their denial letter. With the exception of my student loan, which only shows up on my Equifax report, all three of my reports are identical.

So, in light of this, I think I may hold off on the apps for about 3-6 months, until I get some utilization with the new ones under my belt. Cap One is the only one who mentioned inquiries, so I think I may be getting to the point where applying for new account would be futile until some of the inquiries become not so new.