How many CC's is enough?

[thom02099]

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@BlueNightStar wrote:

My personal preference is for cards from mupltiple issuers so I am covered if anything changes on one of my cards. I've seen a lot of changes in cards and banks over the last ten years. I will eventually have three cards from my current CUs in addition to the usual rewards cards. Of course the CU rewards are usually below that of prime bank CCs but they are also very generous with higher CLs and lower interest rates. They are also more willing to work with you if you run into problems and less likely to take AA. I've come to realize that it's not always about the bottom line of rewards, it's a mix so I'm covered for when life and banks change.

I currently have 10 cards and have no trouble managing them. My goal is 15, including a few store cards.

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+1...in complete agreement.  While we'd like to think that the cards will remain static and not change, those of us who've been around the block a few times, know that's not true. 

I currently maintain 16 cards and use most of them, although the CSP and JPM get the most workout. Some of the store cards remain in the SD until needed for a specific reason (like Home Depot and Lowes).   All the cards serve a purpose and I believe that credit scores grow exponentially with the number of cards one has, the individual credit limits and that ratio to the total credit limit.  Having  recently reached the 800 club after getting more TL in late 2012 and Jan/2013, I believe this was due to demonstrated management of multple cards with multiple balances (PIF) and keeping util right around 4-5% (seems to be my sweet spot!)

[Anonymous]

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@zeusta20 wrote:

I've always heard that you're supposed to have betwen 3-5 credit cards. No less than 3 and no more than 5. I've carefully planned out my portfolio ever since i was 19. (i'm 22 now----23 in july----). So now I have my 5 CC'S. BUT, after reading so many different beneifts, I'm extremely tempted to get two more...lol.

Is it bad on your credit report to have 6 or 7 CC's? Do you guys think that may be over doing it?

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Just curious, who or where did you always hear this 3 to 5 CC rule?

I just read that 7 in national average.   IMO,  5 to 12 is a good range.   Get the 2 more that you want.

[zeusta20]

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@Anonymous wrote:

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@zeusta20 wrote:

I've always heard that you're supposed to have betwen 3-5 credit cards. No less than 3 and no more than 5. I've carefully planned out my portfolio ever since i was 19. (i'm 22 now----23 in july----). So now I have my 5 CC'S. BUT, after reading so many different beneifts, I'm extremely tempted to get two more...lol.

Is it bad on your credit report to have 6 or 7 CC's? Do you guys think that may be over doing it?

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Just curious, who or where did you always hear this 3 to 5 CC rule?

I just read that 7 in national average.   IMO,  5 to 12 is a good range.   Get the 2 more that you want.

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Well I just got approved for one this week. Should I apply since its still fresh? That way my AAoA will all be maturing at the same time?

[jamie123]

I think a lot of people are missing out on the benefits of having a few more cards. The OP is in his early twenties and now would be a good time for him to add a card or two.

Most people in the 800 club have 6 to 8 credit cards that they have had for a long time. This really helps them maintain their 800 club status. It gives them a broad base so as they need new credit every now and then, say for a new car, their AAoA doesn't take a very big hit. I think that to get into and stay in the 800 club you need all the additional points that a good AAoA will give you.

That's why once you reach a certain point you only want credit cards from prime banks. They hopefully will be around 20 or 30 years from now and you can have some really old credit card accounts.

[CreditScholar]

I wouldn't want more than 3-5 cards that actually get used. Beyond that it becomes too time-consuming and it's more hassle than I want to deal with. Each CC should have a purpose and fulfill a specific function. If it doesn't then it either gets SDed or cancelled.

[zeusta20]

yea, I see what you mean. Well, From your FICO SCORES, it seems like its working for you.

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@CreditScholar wrote:
I wouldn't want more than 3-5 cards that actually get used. Beyond that it becomes too time-consuming and it's more hassle than I want to deal with. Each CC should have a purpose and fulfill a specific function. If it doesn't then it either gets SDed or cancelled.

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[drkaje]

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@LS2982 wrote:

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@drkaje wrote:

Once they're paid off and I'm financially stable, the perfect number will be three. An Amex, Visa, & MC. My remaniing cards will be closed or shredded.

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Noticed Discover isn't in that mix..........................??

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No use for it.

I might keep the Amex Delta because it's dated to 94 but that probably doesn't really matter.

Right now I'll probably keep the BCP, Citi Cash Returns, and one other.  Basically, the rest of my cards are fighting for that last slot, LOL! If Chase ends up increasing my Freedom limit from $3K, they'll be in the lead. Purely based upon customer service I'd say USAA has earned the third slot.

[Open123]

To try and squeeze out every bit of rewards, then I think one would need around 10 cards?  That's if a person is willing to carry around many cards and be at the ready to use whatever card happens to have a higher % on spending.

I've no idea what the number of cards one needs to have to maximize Fico scoring.  I'd image more than 2 and less than 20?  

In practice, I find 3 or 4 cards ideal.  One for non bonus spending and assorted travel perks/benefits.

[Cdnewmanpac]

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@jamie123 wrote:

I think a lot of people are missing out on the benefits of having a few more cards. The OP is in his early twenties and now would be a good time for him to add a card or two.

Most people in the 800 club have 6 to 8 credit cards that they have had for a long time. This really helps them maintain their 800 club status. It gives them a broad base so as they need new credit every now and then, say for a new car, their AAoA doesn't take a very big hit. I think that to get into and stay in the 800 club you need all the additional points that a good AAoA will give you.

That's why once you reach a certain point you only want credit cards from prime banks. They hopefully will be around 20 or 30 years from now and you can have some really old credit card accounts.

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Again, this comes down to context. On this forum, the focus is on scores and the focus is very short term. From a short term, score maximizing strategy, 3 cards is probably optimal. For long term strategies focused on maximizing financial flexibility, the equation could be quite different. I'd also point out that correlation doesn't equal causation. It is as likely that people have more cards because they have 800 ficos as that they have 800 ficos because they have more cards (or the two are outcomes of an undescribed third variable, which is the most likely).

This also ignores: income, occupation, travel habits, investment strategies, real estate situation, spouse/partner income/habits/strategies, age, financial goals, etc., etc., etc.

If you are trying to maximize your fico in the short term for something like a mortgage, the magic number is 3. Otherwise, the number isn't magic and it isn't the same for any two people. For those of you spending 300k/year on credit cards, it may make sense to have 12. Personally, I don't make that kind of money. I'd rather concentrate my spend on one or two rewards cards, have a few others around for specific non-spend related purposes and give myself the flexibility to add a new product if it helps me. But I have a 24 year history, an aaoa approaching 10 years, already own a home, etc.

So OP, if you can really benefit from the other two cards and they won't dilute the benefits of your current ones and you aren't looking to buy a house soon, then sure, get the cards. But don't do it in pursuit of some magic number.

[Revelate]

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@Open123 wrote:

To try and squeeze out every bit of rewards, then I think one would need around 10 cards?  That's if a person is willing to carry around many cards and be at the ready to use whatever card happens to have a higher % on spending.

I've no idea what the number of cards one needs to have to maximize Fico scoring.  I'd image more than 2 and less than 20?  

In practice, I find 3 or 4 cards ideal.  One for non bonus spending and assorted travel perks/benefits.

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This is pretty much where I'm at too in terms of cards I actually use. 

Otherwise: minimum 2 cards, and I would suggest three.  Diminishing returns for mix of credit at 2, payment history either 2 or 3 I think as an anecdotal swag.  Thin file is characterized as 4 tradelines IIRC, get above that number regardless in one's revolving and installment tradelines.

National average is probably the 7-8 someone mentioned before from what I remember earlier and undoubtedly it's a bell curve above that (below that maybe not statistically), that said when I look at my own profile:

BCP: regular use (and CLI chasing)

Zync: regular use (for now)

Chase Freedom: semi-regular use

BOFA Travel Rewards: minimal use

USAA: tradeline farming

DCU: tradeline farming 

Walmart: FICO and CLI chasing one purchase a month

Orchard now C1: tradeline farming

When I look over the next few years I need from a rewards / use perspective:

1) Groceries

2) Restaurants

3) Gas

4) Home improvement

5) some no-FTF travel card

That's maybe 4 cards (and possibly 3), everything else is just style points and not that many for that matter when it comes to credit report building for 5 years out.