@missjae wrote:
@WJL wrote:
Is there a general limit as to how many CCs are too many? Like the DTI ratio, there must be a ratio that looks at how much credit you have vs. your income? I'm in the middle of a spree and wondering when is the appropriate time to stop. I've been approved for three which brings me to a total of 8 CCs. I'd like to go for 3 more? Is that ok? I don't need all this new credit but using this opportunity to extend my availability just in case for the future.
Also, I started my spree last night and myFICO is now showing 2 INQs. Is it still safe to continued spree? Today would be the last day anyway if I were to continue.
I think it's more of a personal preference. Some people only want a few and some people want tons. I have what some would consider a lot, but it's manageable for me. There's a difference between having the available credit and using it all up and then carrying balances. In addition, you can have a high income, but if you mis manage your finances, the high income won't matter. I think too many comes in when an individual mis manages their finances and lives beyond their means, whatever that may be.
Also, why wait until you need the credit to try and obtain it? I have more credit than I need at the exact moment. In fact, I don't NEED credit. I can pay with cash. I choose to have credit to utilize just in case and because I love having it.
Yes, really personal preference, and ability not to get out of control on spending.
Also, the only time an issuer might worry about # of cards is the number newly opened (showing a possible sudden need for credit), and, indirectly, the average age of accounts, which will be lower if you open several accounts.
Things like outstanding credit limit isn't so dependent on # of cards, you can 10 cards each with 1K CL or one with a 10K CL, and both are the same on that measure.
There are two main reasons for getting cards often cited here:
1) Utilization. Adding a new card gives an additional CL, which helps. If possible, getting a CLI on an existing card is better Fico wise, as it keeps your AAoA by avoiding new accounts. And in some cases a CLI can be soft, whereas a new card is almost always hard.
2) Rewards. The new card gives me some rewards that my existing cards don't.
While I myself (internally) justify apps with this second reason, as the number of cards increase any additional rewards from a new card are likely to very "niche", i.e. the rewards are only on a very small part of your spend. The exceptions here are if a new card comes along with higher rewards than your existing one (e.g. when BCP first came out) or if you start a new spending category, e.g. you suddenly need to start travelling.
TL;DR: No real harm in getting cards providing you can manage them, and if you have problems one can be too many, and after a certain point, not too many gains usually.
Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
