I've always heard half your age, plus 7
@Amwar73mf wrote:I messed up my credit during the great recession, lost everything I owned (job, car, house, savings). Now that I've rebuilt my credit score up to the 730s, I'm getting CC offers all over the place. I have three cards now, and two of them have interest free periods I'm going to try to take advantage of. I'm just afraid I'm going to overdo it and get in trouble again.
Right now, I leave my cards at home unless I'm going looking for specific things. I try not to buy necessities with them, although I did charge my car insurance last time, but it was a new card that gave me a $200 cashback if I charge $500 in three months, so getting that made me go ahead and put the insurance on it to get that $200 off. I can definitely pay that balance off before the free interest is done.
I know I should be better about juggling my cards to get the points, but I know myself and it's so tempting to buy more than I can afford just because I have that card. I'm so scared of having to end up paying minimum payments and all that interest again because I got carried away.
So I guess I'm asking if some of you with dozens of cards feel like you have too many, and should I stop here? How do you decide when you have enough cards? I've never had more than two, and I always had that mentality to spend it up to the limit. I'm over that, and trying to stay below 30% of the limit now and pay that off before I charge more. I just don't ever want to get into trouble again.
@Amwar73mf I hear you. The ideal number of credit cards varies from person to person so this is not a one size fits all answer. For one person, 3 credit cards may be ideal while 20 or more is ideal for another. Some questions to ask yourself:
Am I financially responsible?
Am I capable of managing multiple accounts per month?
Am I earning enough income to justify opening more accounts?
Unfortunately, it's very easy to get into financial trouble using credit cards. Extreme discipline is needed in order to avoid this trap and it sounds like you're unsure of yourself at this point. With that being said, this is Uncle Money's advice:
1. Number of credit cards - It sounds like you already have enough credit cards, for now at least. Steer clear of applying for any new credit right now because this just adds to the temptation of charging more.
2. Keep credit utilization low - You said you're trying to stay under 30%. I would recommend staying under 10%. That is really the ideal number.
3. Pay in full whenever possible - Try to avoid paying interest by paying your statement amount in full each month if you can.
4. Set credit goals - Try setting credit some credit goals for yourself. One example could be reaching for a higher credit score. This involves keeping utilization very low. You're not going to reach a very high score with high utilization. This can help you stay on track.
5. Remind yourself of what happened last time - Just when the temptation sets in, think about your past experience and how you had to work to rebuild everything.
Personally, it took me years to reach the credit profile that I've acheived today. As of today my highest FICO score is 846. I keep it there by staying financially disclipined with all of my accounts. I take credit very seriously.
Good luck on your new credit journey!
Uncle Money
You've already gotten some great replies and feedback in many of the above messages, @Amwar73mf. This topic has been raised often but it's usually more general. With the information you shared, this has become more about how many cards are right for YOU personally. You've gotten the usual response from the community, which is whatever number you feel comfortable managing and that number can vary widely.
I would suggest that in this case, you not add any more cards right now or change your usage of credit cards based on what you see on My Fico. Our enthusiast community is not typical of most credit card users anyway! The average consumer has about 3 to 4 credit cards and they do NOT juggle cards excessively to maximize rewards. You say you've limited yourself to two cards most of your life but right now you have three, yet you got yourself in trouble with your approach to credit. You're wisely cautious about credit after digging yourself back out of debt. Adding more credit makes you feel uncomfortable. You've answered your own question. For you, at this point in time, you have enough cards.
I agree that you have some good options such as lowering your credit limit to avoid temptation or to try to further limit yourself to 10% of CL instead of 30%. It's natural to have some fear about credit after where you've been, but I encourage you to continue to use your cards carefully and rebuild your confidence in being able to use them responsibly and with self-discipline.
While it can be a matter of how many cards you (CAN) manage, it's also a matter of how many cards you (WANT TO) manage. I added cards until I had 21 and while I could have managed more, I decided I just didn't want to any longer. So I'm in the process of down-sizing again. There's nothing wrong with having just one, two, three, four cards and being content. As stated earlier, credit cards are just a tool to help you manage your spending and finances.
You do not have to add dozens of cards to help your utilization. While some of our members on My Fico do that, you can also use and grow your existing credit limits to manage your utilization.
Having three cards is suggested as the minimum number to maximize your FICO score; in that respect, you already have all you need if that is a goal for you.
For some, simplicity is best anyway, regardless of the financial discipline aspect. It's a matter of comfort and how many cards works best for you without adding unnecessary complexity or stress to your life. If managing your credit life is adding stress to your life, you're doing it wrong. Do a self-analysis and decide what you need to change.
