How important is CC diversity?

[Open123]

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@tinuviel wrote:

I'm of the opinion that it's best not to put all of one's eggs in one basket, so I like the idea of getting cards from more than one bank/issuer. That way, if you come to a parting of the ways for whatever reason, there are other options in your wallet. I also like having different cards for differnet purposes -- rewards, terms, etc. -- and then use the card that makes the best sense for a particular purchase.

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Couldn't agree more.

When possible, I always opt for divesification and the competition it encourages amongst venders and those with whom I do business.  While I value professional relationships for many different reasons, I prefer that everyone with whom I work with realize I have different options and never take my business for granted.

[Anonymous]

As my credit improved I started to think more about diversifying my portfolio. I started out with a plain BofA card and for a long time didn't pay much attention to what else was out there. I didn't know certain banks were well regarded or that there were cards that had more rewards or better benefits. Now, I think it's nice to have different cards to maximize rewards/benefits according to one's needs. It's also nice to have different creditors in case something happens to one card you have others to fall back on. I've also read that cards issued by national banks help with the credit mix aspect of one's FICO score.

[drkaje]

I'd rather not have more than two cards with one company but don't really feel diversity is important. I have a few good cards and that's pretty much enough. I don't know if creditors give much concern once you have decent cards/limits.

[Tonya-E]

I definitely fit into the category of wanting a card from each of the 4 major issuers.  I honestly do not see that it will help or hinder you fico-wise.  However, each issuer has it's own perks that may or may not be offered by the other.  Also, there are certain bill pay sites that give bonus perks if you use a certain "brand" of card.  Lastly, some issuers are more prone to giving a lower APR if that is what you are seeking (though that is irrelevant if you pay off your balance every month). But if you do carry balances, Amex for instance,  probably would not be your card of choice. It gives great rewards if utilized to the maximum benefit but doesn't offer a wonderful APR, except the 0% for BT.  So really the only thing I see is a possible rewards benefit in some circumstances, a backup if the card if one (such as Amex or Discover) is not accepted somewhere, and the personal choice aspect of it.  I can't really say there is necessarily a strong importance in having card diversity. 

[Anonymous]

Out of curiosity, what are the 4 major banks? BofA, Chase, Citi, Amex? Wells Fargo? Maybe I shouldn't have closed down my BofA card afterall

[Tonya-E]

Visa, Mastercard, Amex, Discover...

[Anonymous]

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@tonyaether wrote:

Visa, Mastercard, Amex, Discover...

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Ah ok, issuers. Somehow I misread it as bank, not thinking clearly its getting late!

[Tonya-E]

Yep!  Believe me I understand...I am getting  little groggy over here too

[bribro]

I don't think CC diversity plays into one's credit score directly, but by having that diversity it makes new issuers more comfortable extending credit to you during a manual review. When you apply for a card at a bank you have no prior relationship with, one of the primary factors for determining your credit limit is the highest existing limit you have.

[CreditScholar]

CC diversity is important but not for your score. It's to cover your butt in case things go wrong. If you don't carry a backup, technical issues with one bank or network can leave you unable to buy things in an emergency.

I think it's always important to have at least 2 different types of cards from 2 different banks. This is doubly true if one of them is Amex (with FRs) or Discover which aren't as universally accepted. Common sense says not to put all of your eggs in one basket.