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How Many Credit Cards Does a Guy Need?

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New Contributor

How Many Credit Cards Does a Guy Need?

I have seen frequent examples of people with really high FICO scores who have a dozen or more credit cards with well over $100,000 in available credit. For someone whose income and habits support that level of spending, perhaps that makes sense, but for the rest ...  I don't get it.

 

I understand that high credit limits can result in low utilization rates, which FICO likes to see, and maybe FICO is impressed by how many businesses thought someone was creditworthy, but seriously: how much credit does a guy need to have before FICO (and subsequent credit grantors) say "you have too much available credit"?

 

1) 

Message 1 of 66
65 REPLIES 65
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Frequent Contributor

Re: How Many Credit Cards Does a Guy Need?

Go look at the Sync shutdown thread. Smiley Wink

Fidelity VISA Signature 11.5k
Capital One VentureOne 11k
Amex Gold NPSL
Amex Green NPSL
PayPal Synchrony MC 6.4k
Petal2 VISA 6k
DiscoverIt Cashback 5k
Hotels.com 5k
Capital One QS 3.5k
AMEX Hilton Aspire 3.1k
Apple Card 3k
Amazon/Synchrony 3k
Cathay Pacific/Synchrony 2.5k
AMEX Hilton 1k
Target 800
Ch 13 filed 12/13 discharged as paid 1/19
Message 2 of 66
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Established Contributor

Re: How Many Credit Cards Does a Guy Need?


@notmyrealname23 wrote:

Go look at the Sync shutdown thread. Smiley Wink


😂😂😂



Starting Fico Scores:November 2019

Current Fico Scores: September 2, 2020
Goal Scores: 700 across all three
Message 3 of 66
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Community Leader
Senior Contributor

Re: How Many Credit Cards Does a Guy Need?

Three is a good number for practical purposes. That gives you some options in case there's an issue with a card. If you have exactly three cards, two should be either Mastercard or Visa. If you wish to have both an AMEX and a Discover card, you should have at least four cards so you still have two Mastercards/Visas.

 

A few people are uncomfortable with as many as three cards. In that case, go for two.

 

From a scoring perspective, three cards is good for optimizing your card usage. Some say five is better. More than five doesn't really help.

Message 4 of 66
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Community Leader
Senior Contributor

Re: How Many Credit Cards Does a Guy Need?

As many as one can handle, and get best use. You obviously don't want to devalue other cards. This really is going to be individual based.

As stated above, you don't want to experience CLD or closure. Diversifying lenders and having some padding can help protect when a lender does AA.

 

Message 5 of 66
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Regular Contributor

Re: How Many Credit Cards Does a Guy Need?

Depends on the individual. My spending habits/income don't warrant the necessity of lots of cards or high limits. Three is a good number for me, if I end up with Discover, Cash+ and Chase Freedom or Amex Cash Magnet @ $5k each I'll be content. 


I imagine the majority with an extensive list of cards and high limits have good reasons for wanting them and make use of their benefits. Thinking of $100k in available credit makes my eye twitch but that doesn't mean its not right for others. Smiley Wink

AAOA: 3 yrs 6 mo | UTIL: 5% | FICO 8: TBD 05/2021
Discover it $1.5 | Wayfair MC $4.5k | Cap One QS $1.2
Message 6 of 66
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New Contributor

Re: How Many Credit Cards Does a Guy Need?

FICO doesn't care (or have a limit) on a person's credit. FICO cares only about utilization and would treat it the same if total credit limit was $1,000 or $100,000.

 

Each credit card issurer has thier "limit" (have no idea though what that is) All depends on income and debt.

 

The crazy high limits you see others have are aquired (sometimes not intentional as is in my case) over time.

 

I have 7 cards, (which is the most I see myself ever having at any one time), and it maximizes cash back on all my spend without needing spend on cards just to keep them.

Message 7 of 66
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Valued Member

Re: How Many Credit Cards Does a Guy Need?

One. And make that an AMEX Centurion card Smiley Tongue

 

In all seriousness it depends on the person. Just like anything else there is a wide spectrum of comfort level from zero cards to 30+. I personally would like to have 2 ... a Visa/MC where my primary card (AMEX) is not accepted.

 

FICO and lenders care about many criteria but focus on payment history, current utilization and available credit limits (especially lenders) for future credit.

Message 8 of 66
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Community Leader
Mega Contributor

Re: How Many Credit Cards Does a Guy Need?


@notmyrealname23 wrote:

Go look at the Sync shutdown thread. Smiley Wink


That has nothing to do with how many credit cards someone needs or has. That was more based on the economy and the Covid Effect. 

Message 9 of 66
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New Contributor

Re: How Many Credit Cards Does a Guy Need?

Should I know what "Sync shutdown" is?

Message 10 of 66
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