topic Re: Why so many cards? in Credit Cards

Why so many cards?

Blurbz — Wed, 20 Mar 2013 16:54:31 GMT

I don't mean to be rude or to sound terribly uninformed, but I can't figure out why so many people on this board have so many cards. I know some "collect" them: different banks, different features, a nice mix of rewards, etc. And I guess I get that--at least the rewards.

For rebuilding/building credit, though, isn't one or two enough if you use them responsibly, pif, and make sure you're at < 10% when the statements cut? I'm just confused when I see peoples' signatures and they have a ton of store cards with $300 credit limits and sub-600 credit. Is that only good because it helps keep your util rates down?

What are the fico-score benefits to having so many cards?

Re: Why so many cards?

Anonymous — Wed, 20 Mar 2013 16:56:16 GMT

A few of them are for rewards, the others are mostly to increase my available credit and my score.

And, I just like to apply.

Re: Why so many cards?

jsickz32 — Wed, 20 Mar 2013 17:08:10 GMT

<-------member of the too many accounts club

Re: Why so many cards?

navigatethis12 — Wed, 20 Mar 2013 17:12:59 GMT

Last year I opened many accounts because I only previously had two and wanted to build credit now while I am young. I think having and maintaining multiple trade lines as opposed to just one or two looks better on a manual review. I had high 700s when I only had the two cards, so I don't know if there is much of a score benefit to having many cards.

The cards I do have most have decent limits that get used from time to time depending on the rewards or if I want 30 of float for business use. I only have two store cards with a 3000 and 10000 limit so they are worth it. I guess when people have ruined their credit they will take what they can get so multiple 300 limits may be a huge thing for them.

@Anonymous wrote:
A few of them are for rewards, the others are mostly to increase my available credit and my score.

And, I just like to apply.

Did the limit on that PNC card start at 7500 or did you ask for an increase on it? I was going to request one from them from 5200 but I couldn't find any information about what they like to see before granting one.

Re: Why so many cards?

teddybearkelli1 — Wed, 20 Mar 2013 17:14:13 GMT

I have a lot of cards, but don't believe they are "too many" if you know how to manage them well. I keep everything in Quicken and manage them quite proficiently that way. I rotate monthly, or depending on the type of usage/rewards. I have a good mixture because of the rewards and/or discounts I can get from using each one, as well as it keeps the utilization down - though not a big factor. I've closed 7 accounts just this year, removing the subprime cards that Ive had over a decade, for some unknow reason to me. I PIF 95% of them, float a small balance *under 8%* on 2-3 monthly. I believe that you should be able to manage what you have, whether it is 2 cards or 30. If you can't manage them well, then you need to decrease the number of cards you have regardless of what that magical number is.

Re: Why so many cards?

Anonymous — Wed, 20 Mar 2013 17:15:06 GMT

Cause we are all NUTS!!

Re: Why so many cards?

InvincibleSummer3 — Wed, 20 Mar 2013 17:16:25 GMT

Over on the Rebuilding forum, it's said that 3-5 are needed for rebuilding.

Re: Why so many cards?

BungalowMo — Wed, 20 Mar 2013 17:17:16 GMT

I have 12 active cards. Only 5 are ones I use. Total limits...110k

Paying down balances. Only owe on about 4.

Re: Why so many cards?

Supawest — Wed, 20 Mar 2013 17:21:28 GMT

Good question...Is it becasue it adds a little color and splash to the signature line?

Re: Why so many cards?

Anonymous — Wed, 20 Mar 2013 17:25:40 GMT

I've read that 3-5 is optimal for FICO scoring...more than 6 may actually hurt your score. There are a couple benefits I see from having a lot of cards. If you are just starting out and getting low limits then having a lot of cards can help with utilization. Adding new cards in the future won't hurt your AAoA as much since you have a lot of older accounts to buffer the age.

Re: Why so many cards?

Anonymous — Wed, 20 Mar 2013 17:25:49 GMT

@navigatethis12 wrote:
Last year I opened many accounts because I only previously had two and wanted to build credit now while I am young. I think having and maintaining multiple trade lines as opposed to just one or two looks better on a manual review. I had high 700s when I only had the two cards, so I don't know if there is much of a score benefit to having many cards.

The cards I do have most have decent limits that get used from time to time depending on the rewards or if I want 30 of float for business use. I only have two store cards with a 3000 and 10000 limit so they are worth it. I guess when people have ruined their credit they will take what they can get so multiple 300 limits may be a huge thing for them.

@Anonymous wrote:
A few of them are for rewards, the others are mostly to increase my available credit and my score.

And, I just like to apply.
Did the limit on that PNC card start at 7500 or did you ask for an increase on it? I was going to request one from them from 5200 but I couldn't find any information about what they like to see before granting one.

It started at 7.5, just opened two weeks ago

Do you bank with them? I think the reason I got a high limit (comparatively) is that I bank with them.

Re: Why so many cards?

BungalowMo — Wed, 20 Mar 2013 17:25:56 GMT

@Supawest wrote:
Good question...Is it becasue it adds a little color and splash to the signature line?

I've been away for a bit....how do you add those???

Re: Why so many cards?

sarkell — Wed, 20 Mar 2013 17:28:21 GMT

No I Agree and once I get some higher limits but some I've had for a long time neiman Marcus no annual fee etc use it randomly but no using it constantly. Then waiting to quit subprime cards. I'm getting rid of one in the fall. And one next year. Take me to 3 plus store cards. Some store cards like gap have great rewards special sales plus 5% back in gap rewards which is really good. My mom at some point had 40 cc she was preparing for a divorce wanted extra available credit.

Re: Why so many cards?

youngandcreditwrthy — Wed, 20 Mar 2013 17:32:38 GMT

1! We are all nuts!!!

In my case, my lowest limit card is $1700.

The more positive tradelines you have reporting, the better your score is. That is factual.... Every card really has benefits. In my case, I just use most of my cards once every few months and pif.
It also looks great to lenders when you have $5-10-20k limits that are managed effectively....Ive considered/tried to close some, and every time I do... I get convinced to not close with a cli or some type of other conman creditor's trick! Lol
Also keep in mind, having $145k+ in avail credit doesn't mean you have that much debt...
The good things about credit cards is that you don't have to use them if you have them; it's all a matter of how responsible you are.
:-)

Re: Why so many cards?

Bay_Area_Joe — Wed, 20 Mar 2013 17:38:12 GMT

Well, I do not the inside and outside of the true FICO scores, really nobody does I guess.

But, I can tell you the more cards I get, the more credit in total that goes up, and just keeping the UTL below 10% and of course never having a baddie, my scores have consistantly gone up.

Time is really what matters. I have way too many accounts right now, some are for rewards due to me becoming self employed and doing some traveling.

Managing so many cards it is that hard either, just keep a spread sheet of all the data and rotate the cards every months or so to keep them active.

I really use only three cards right now, Amex, Marriott Visa, and CSP. Each for different reasons.

When I get my host of new cards in the mail in the coming week I will swtich all usuage to them to meet min spend requirement to get bonus.

But, it all depends what your goals are. Right now I am just building rewards to take advantage of future vacations. Cash back does not interest me at this point because I feel you really never see the cash. Saving points and miles and watching them add up gives me the interest in where I can go for nearly free.

So many cards. So little time in life. The days of huge sign up bonus I do not think will last, so take advantage while you can.

just my 2 cents.....

Re: Why so many cards?

09Lexie — Wed, 20 Mar 2013 18:17:30 GMT

My Dh says I have too many cc's when I told him I needed a new wallet that holds 20. I have few with bal but they are all 0% APR, I use the store cards infrequently so there is activity and is helpful with auto CLI's. I use my reward cards most frequently - alternating between Freedom and Discover for their benefits.

Because my oldest TL is over 28 years, it did not and has not hurt my cr score - even with the addition of 6 TL in the past 6 mos my AAOA is over 7 years. I have added a few more this year but my scores are still in the mid 700's ( as of March 2 DCU pulled EQ at 715)

Everyone's credit profile is different and what works for me may not work for anyone else.

Re: Why so many cards?

navigatethis12 — Wed, 20 Mar 2013 18:18:27 GMT

@Anonymous wrote:

It started at 7.5, just opened two weeks ago

Do you bank with them? I think the reason I got a high limit (comparatively) is that I bank with them.

Yes I have had a chequing account with them for four years just this month. A little bit back someone posted that an underwriter told them that they do take banking history into account when approving for a card. They gave me a 5200 limit when the highest I had was 2380, so I too believe having an account helped. I've had the Cashbuilder a little over a year and no automated increase so I guess maybe they don't do those. The only thing I don't like is that you can't pay from an external account on their website.

Re: Why so many cards?

Supawest — Wed, 20 Mar 2013 18:35:21 GMT

@BungalowMo wrote:
@Supawest wrote:
Good question...Is it becasue it adds a little color and splash to the signature line?
I've been away for a bit....how do you add those???

Using a HTML Image source code like this: < img src=" insert the web address that houses your photo" >

Re: Why so many cards?

Anonymous — Wed, 20 Mar 2013 21:56:21 GMT

@sarkell wrote:
No I Agree and once I get some higher limits but some I've had for a long time neiman Marcus no annual fee etc use it randomly but no using it constantly. Then waiting to quit subprime cards. I'm getting rid of one in the fall. And one next year. Take me to 3 plus store cards. Some store cards like gap have great rewards special sales plus 5% back in gap rewards which is really good. My mom at some point had 40 cc she was preparing for a divorce wanted extra available credit.

Holy buckets dude!!! Did you just say your mom had 40 cards??? Dagggggg!!!!! Oh man!!!! LOL I don't feel bad now at all. Nowhere near that, but wow!!!!!!! *drops mic and just walks off the stage wow*.

Re: Why so many cards?

armbenderc — Wed, 20 Mar 2013 23:03:55 GMT

@Blurbz wrote:
I don't mean to be rude or to sound terribly uninformed, but I can't figure out why so many people on this board have so many cards. I know some "collect" them: different banks, different features, a nice mix of rewards, etc. And I guess I get that--at least the rewards.

For rebuilding/building credit, though, isn't one or two enough if you use them responsibly, pif, and make sure you're at < 10% when the statements cut? I'm just confused when I see peoples' signatures and they have a ton of store cards with $300 credit limits and sub-600 credit. Is that only good because it helps keep your util rates down?

What are the fico-score benefits to having so many cards?

I'm sitting on 10 cards.

Freedom, BCE, Amex Green, BBRZMC, Paypal Extras MC, Cap1 Cash Rewards, VS, Walmart, IT, and Citi.

Already axe'd Creditone, and FP last year. Will be axing Cap1 (2k) and BBRZMC soon.