topic Re: why so many? in Credit Cards

why so many?

onthemove — Tue, 28 May 2013 21:30:57 GMT

I see on this forms, that people have so many credit cards. I understand you want a high line of credit. There are people with 5-8 cards starting with less than 1k to 5K, 10k 12K and on and on. Why not stick with one bank like I did. I had three cards with this bank and now I just have one. I had all the cards merge into one credit line. I have an Amex Gold PRG, because the membership date is 1990. I am thinking about getting a Platinum and/or Starwood just to add to my credit line and/or AAoA.

Please share with me your reasoning.

thanks in advance,

onthemove

Re: why so many?

Anonymous — Tue, 28 May 2013 21:37:18 GMT

Rewards and perks. Different cards have different benefits, and certain cards have bonus rewards for different categories of spending.

Re: why so many?

Walt_K — Tue, 28 May 2013 21:38:04 GMT

Having only one payment network isn't good if that payment network isn't accepted. Having only one bank isn't good if something goes wrong with that bank. Better to diversify. That explains some of it.

No reason to close down old cards that you aren't using unless they have AFs. That explains some of it.

Re: why so many?

p- — Tue, 28 May 2013 21:41:58 GMT

onthemove wrote:....Why not stick with one bank ....?

For many of us it was a matter of rebuilding, and limited options. For example, at one time I only had an Orchard Bank card with a 300 dollar CL. Later, as my credit improved, I looked for a good mix of features in multiple cards. I added lower and middle tier cards, and then top tier cards as I became qualified.

One risk of sticking with a single bank is they can freeze all of your spending with a keystroke. If there is suspected fraud, a problem with your accounts, or the dreaded Financial Review, you will find you no longer have access to your credit line. Also, there are many places that just don't take Amex.

Re: why so many?

thom02099 — Tue, 28 May 2013 21:54:03 GMT

@onthemove wrote:
I see on this forms, that people have so many credit cards. I understand you want a high line of credit. There are people with 5-8 cards starting with less than 1k to 5K, 10k 12K and on and on. Why not stick with one bank like I did. I had three cards with this bank and now I just have one. I had all the cards merge into one credit line. I have an Amex Gold PRG, because the membership date is 1990. I am thinking about getting a Platinum and/or Starwood just to add to my credit line and/or AAoA.

Please share with me your reasoning.

thanks in advance,
onthemove

Different cards for different options. BT cards in case one needs to do a transfer at zero interest rate. Low interest rate no frills cards. Cards with EMV chips/cards without them. Variety of rewards cards Travel rewards cards. Hotel rewards cards. One from Discover, one from AMEX, one from MC, one from Visa. Just some of the reasons folks carry more than 1-2 cards. I'm sure there are other reasons.

Re: why so many?

Brax — Tue, 28 May 2013 21:58:56 GMT

As the idiom goes, don't put all your eggs in one basket.

I had only two prime credit cards for a few years before suffering a collections setback unrelated to them. During the initial years, the banks didn't penalize me but ceased to reward me with any CLI because of this. After that began to get some age, I began to strategically pick up half a dozen credit cards over the last two years. Althrough my score never changed much, it helped me look better on paper by "diluting" the negative information with an overwhelming amount of positive information.

Re: why so many?

laboi_22 — Tue, 28 May 2013 22:21:26 GMT

We just had a really in debt conversation almost exactly alike last month. Maybe this thread would help answer your question?

http://ficoforums.myfico.com/t5/Credit-Cards/Why-So-Many/m-p/2051027/highlight/true#M569376

Re: why so many?

Stralem — Tue, 28 May 2013 22:32:01 GMT

+1 for the diversity argument.

Having all of your trade lines resting in the hands of one bank is asking for trouble. Just ask all the former WaMu customers browsing this forum. The old saying about having all your eggs in one basket comes to mind.

Also, in my case, I want more than one payment network available to me.

I have Visa, MasterCard, and Discover (and eventually Amex). This is important because, I swear to [insert deity here], that there's a popular restaurant near work -- in downtown Chicago -- that doesn't accept anything BUT MasterCard. I know of another place that only takes Visa, and yet another than only takes Amex and MasterCard.

Again, this is in Chicago. Not exactly a backwater hicksville where everyone uses cash and paper checks.

The more diverse your credit portfolio, the less likely such situations will impede you.

Re: why so many?

LS2982 — Tue, 28 May 2013 23:37:34 GMT

@onthemove wrote:
I see on this forms, that people have so many credit cards. I understand you want a high line of credit. There are people with 5-8 cards starting with less than 1k to 5K, 10k 12K and on and on. Why not stick with one bank like I did. I had three cards with this bank and now I just have one. I had all the cards merge into one credit line. I have an Amex Gold PRG, because the membership date is 1990. I am thinking about getting a Platinum and/or Starwood just to add to my credit line and/or AAoA.

Please share with me your reasoning.

thanks in advance,
onthemove

Why stick with only one bank?? What if they close your accounts???

With so many cards available out there you'd be missing out staying "loyal" with one bank!

Re: why so many?

odd_dog — Tue, 28 May 2013 23:46:34 GMT

Yup different cards for different options, loyalty programs (better seats on airplanes, higher status at hotels, etc..) other than that and the fact that I do not like my eggs all in one basket, just incase the issuer desides to add a fee, or something silly like that I have other choices available to me....and the fact that it is a challenge to get as many cards as I want.......LOL

Re: why so many?

Arago — Wed, 29 May 2013 00:01:18 GMT

Because banks and credit unions are not all equal in service and products. Some banks and credit unions will benefit you much more than others. Your job is to find out which those are. Amex can be a nice card to have but they have to pay for their advertising and slick card designs by charging many customers very high interest rates and fees.

Re: why so many?

CreditScholar — Wed, 29 May 2013 02:09:53 GMT

Different cards serve different purposes. In some cases, each card in a person's wallet will be better at earning points in certain categories. For others, each card will provide a different set of perks/benefits. For mine:

CSP:

* Travel, dining & UR Purchases

* no forex

* Visa

United Club:

* All general spend (1.5 miles per dollar)

* United and Star Alliance lounge access

* United perks (priority checkin, 2 free bags, etc.)

* Hyatt Platinum & Avis First

* Primary CDW

* WEMC

JPM Ritz Carlton:

* First 10k in annual general spend for Ritz & Marriott gold status

* Lounge Club for non *A lounges

* $200 unrestricted airline credits annually

* Ritz-specific benefits ($100 hotel credit per stay, 3 annual club level upgrades, etc.)

* EMV Chip

BofA Privileges:

* Just in case something happens with Chase I'm not totally screwed

Re: why so many?

knoregs — Wed, 29 May 2013 03:48:58 GMT

OP... haven't you noticed the pleasure members get from apping and being approved?

~kn

Re: why so many?

odd_dog — Wed, 29 May 2013 11:46:41 GMT

LOL!!!! You LIKE me ...... You REALLY like me!!! LOL

Re: why so many?

thom02099 — Wed, 29 May 2013 11:52:47 GMT

@knoregs wrote:
OP... haven't you noticed the pleasure members get from apping and being approved?

~kn

Ahhh yes....the Thrill of the Hunt ! ! ! !

Re: why so many?

Anonymous — Wed, 29 May 2013 16:36:29 GMT

Never saw the need for a vast portfolio myself. Just more uncessessary life clutter to keep track of in my book. AMX BCE, Discover It, and my local CU Visa cover most of my rewards needs. And on a personal note, when it comes to credit nightmares, count me in the "Been there, Done that" crowd. 22k in available credit is MORE than enough potential trouble for me to get myself into. I don't need anymore. I use credit sparingly these days, and only when it will benefit me.