topic Re: Why So Many? in Credit Cards

Why So Many?

Anonymous — Thu, 11 Apr 2013 00:43:34 GMT

I see a lot of people here with a lot of cards. Is there a reason to have that many? (I'm not judging, just genuinely curious.)

We are in the 'fixed the credit screwup, learned our lesson, starting to utilize credit again after swearing it off' phase right now. I'm trying to take some cues from people who seem to be doing great, credit-wise.
Our finances are good, getting retirement and savings on track.

Just opened 2 TL of revolving, have 2 SL and 1 auto loan. Plan on gardening what we have, but am trying to get a good long term plan established.

Is having so many TL for utilization purposes only, or does having more lines in good standing boost your scores that much?

Re: Why So Many?

Anonymous — Thu, 11 Apr 2013 00:48:41 GMT

All the cool kids are doing it.

Also, a lot of us like to maximize credit card rewards.

Re: Why So Many?

E150GT — Thu, 11 Apr 2013 00:51:48 GMT

I dont want too many, I didnt really think over most of my card apps until now. I am thinking of closing my slate...

Re: Why So Many?

09Lexie — Thu, 11 Apr 2013 00:56:53 GMT

It's the bonus/rewards for me. Not just because I can but if it gets me a trip, statement credit, upgrade rooms/ airline seats....why not?😉

Re: Why So Many?

Anonymous — Thu, 11 Apr 2013 00:58:10 GMT

There are several different motivations.

1) As Commandolam says, all the cool kids are doing it, and you wouldn't want to be uncool would you?

2) Genuine need for lots of credit (I suspect that is rare)

3) Utilization: Adding CLs reducing utilization for a given balance, increasing score. Much cited here, but in most cases far in excess of what is needed for this purpose.

4) Sign up bonuses. These can be worth quite a lot

5) Rewards maximization. Lots of different cards allows you to get maximum rewards on each kind of purchase. True, but diminishing returns as you add more and more cards, as the niche for the latest card becomes small.

6) Portfolio renewal. At the beginning people get what cards they can. As scores/credit history improves, better cards become available. Many people still keep most of their old ones, which makes the number look large, whereas only a small set are actively used.

7) Because the voices told me to.

Re: Why So Many?

LisaJ — Thu, 11 Apr 2013 01:05:47 GMT

Speaking strictly for myself, partially it is utilization strategy. Partially it is the pride in being able to do it after years of having horrible credit. ANd I have taken advantage of the rewards, also.

To be honest, I had no expectation of getting Amex...I am wicked excited to have gotten back in their good graces. I was preapproved for Discover so felt I had little to lose, and since Barclays pulls TU 90% of the time and I had no pulls on TU, I figured now was as good a time as any.

I've apped 5 for 5 this year, with 4 of those needing call ins (2 definitive recons). Prior to that, I had not apped in several years and likely won't again for a good long while.

Re: Why So Many?

MazdaSpeed — Thu, 11 Apr 2013 01:02:49 GMT

I originally had 2 cards last month and wanted to open more so later in life when my AAoA actually matters it would be stronger and wouldn't be affected by new accounts as much, I thought getting 3 more would be good, so I had 5 open cards (I already have 5 closed accounts 4 cards 1 student loan that will also help my AAoA for another 8 or 9 years)

But then I got on this website and realized how I could miles cards work, like the CSP and ended up realizing I could get a few good bonuses so I added 3 more cards to the mix, and now have 8 open cards, but I wouldn't recommend this, I know my scores are going to go down in the short term, until all of these accounts age

Re: Why So Many?

Anonymous — Thu, 11 Apr 2013 01:05:32 GMT

@Anonymous wrote:
There are several different motivations.

1) As Commandolam says, all the cool kids are doing it, and you wouldn't want to be uncool would you?

I should just be clear that there is cool and cool. Cool kids get lots of cool cards, maybe flash them a little, but that is all. Wannabe cools have conversations like: "So this card gets me 2% off anything at Sears, whereas this one is 4% at a drug store. I used to use this one there for the miles but....." This is not cool. At all. Thank you for your attention to this Public Service Announcement.

Re: Why So Many?

webhopper — Thu, 11 Apr 2013 01:08:13 GMT

3-4 cards are plenty.

I have 4 credit cards, and 1 business credit card.

Re: Why So Many?

Anonymous — Thu, 11 Apr 2013 01:11:25 GMT

I never really thought of the rewards thing until I lurked here for a while. Plan on using our shiny new nRewards quite frequently and paying it off monthly to start stacking up the rewards there.

Do you have to use the cards a certain amount just to keep them active?

Re: Why So Many?

improvingmycredit — Thu, 11 Apr 2013 01:13:05 GMT

Hey hausfrau!!!
Welcome to the forums!
As BS stated- mostly because many on here have failed to close their rebuilder cards and this skews the number that people genuinely use.
However- When rebuilding- one should strategically plan for the cards that will maximize the growth potential for future credit prosperity.
What I mean by this: get cards that set you up for larger limits later- spreading your apps over several CRAs to minimize the damages of 1 CRA with heavy inqs- picking card that best meet your financial objectives at the time. Really do your research here and find the info you need to get the TLs that best suit you.
I recommend a good 5 TLs to ensure no dips in FICO if you find yourself needing to use some of your available credit. Having a little more than you need isn't such a bad idea as long as you are capable of not putting yourself in a debt pit. Hope this answers some of your question about having many and I know I added some you didn't ask for...

Re: Why So Many?

webhopper — Thu, 11 Apr 2013 01:13:30 GMT

@Anonymous wrote:
I never really thought of the rewards thing until I lurked here for a while. Plan on using our shiny new nRewards quite frequently and paying it off monthly to start stacking up the rewards there.

Do you have to use the cards a certain amount just to keep them active?

Some do, some dont.. it varies by lender.

Specificallly store cards become a problem, especially for people such as myself who do not shop a lot. Some accounts can be closed due to inactivity, so it becomes a challenge to keep cards active if you maintain a large stable of cards

Re: Why So Many?

Anonymous — Thu, 11 Apr 2013 01:18:22 GMT

@webhopper wrote:
3-4 cards are plenty.

I have 4 credit cards, and 1 business credit card.

But your sig lists 6 cards!

And certainly 3-4 cards are not enough for some.

Re: Why So Many?

Anonymous — Thu, 11 Apr 2013 01:22:31 GMT

@improving: I actually did check out which cards pull from where before I did a mini-app spree. Ended up with the nRewards and a VS card. I decided to go with a store card I would actually use vs a secured card to help jump start our rebuild. The nRewards offers a limit that far exceeds what we may need to dip into unless a HUGE catastrophe occurred. Planning on doing good by it for a year and then apping for another nfcu card.

Re: Why So Many?

Anonymous — Thu, 11 Apr 2013 01:26:43 GMT

Everyone has their reasons for having the number of cards (and which ones) that they do. I have been canceling a number of my own because they no longer serve a purpose and I don't feel like keeping track of them. I primarily use the first 3 in my signature because they provide the greatest return for me and align with my spending habits. I would imagine that others just want to have a card for every possible scenario in order to truly maximize their rewards and for utilization. One's wants do not have to match another's needs.

Re: Why So Many?

improvingmycredit — Thu, 11 Apr 2013 01:29:59 GMT

hausfrau
Sounds like a plan! NFCU will get you started on the path to higher CLs with other lenders as your score continues to grow. Excellent choice! I love NFCU! Keep us informed

Re: Why So Many?

Anonymous — Thu, 11 Apr 2013 01:33:26 GMT

At this second, I just want to take my new card and stroke it, and promise it that I won't ever let anything bad happen to it! My end goal is just to have a good credit score. I'm way too ADHD to keep up with a lot of cards.

Re: Why So Many?

Anonymous — Thu, 11 Apr 2013 01:37:41 GMT

I know I keep saying this, but THANK YOU to everyone who contributes here. Y'all are really making a difference in peoples lives with every bit of info you share. I'm already pointing my baby sister to this site to help her understand credit so she isn't in my shoes in 10 years. You guys rock!

Re: Why So Many?

improvingmycredit — Thu, 11 Apr 2013 01:39:35 GMT

Haha!!! Very funny! Do you watch Big Bang Theory?- sing- Good card- pretty card- little ball of plastic...while you stroke your new card. Haha! ! Anyway- I hear ya on the OCD! I just closed 6 TLs this week after opening up a Barclays card this past week. haha.

Re: Why So Many?

NonSufficientFunds — Thu, 11 Apr 2013 01:46:22 GMT

@Anonymous wrote:
@Anonymous: I actually did check out which cards pull from where before I did a mini-app spree. Ended up with the nRewards and a VS card. I decided to go with a store card I would actually use vs a secured card to help jump start our rebuild. The nRewards offers a limit that far exceeds what we may need to dip into unless a HUGE catastrophe occurred. Planning on doing good by it for a year and then apping for another nfcu card.

How can you find out which cards pull from which CRAs ?

Is there a link or a list that you can point me to ?