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How many is too many?

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Medic981
Valued Contributor

How many is too many?

How many new accounts is considered too many new accounts in a 24 month period? I am aware of Chases 5/24 rule but in general, what do creditors consider too many? 







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Message 1 of 11
10 REPLIES 10
Remedios
Credit Mentor

Re: How many is too many?


@Medic981 wrote:

How many new accounts is considered too many new accounts in a 24 month period? I am aware of Chases 5/24 rule but in general, what do creditors consider too many? 


Every creditor is different and every profile is different. There is no universal answer to your question. 

 

One thing to keep in mind is you may not be approved for credit when you need it because you over did it when you simply wanted it. 

 

 

Message 2 of 11
Anonymous
Not applicable

Re: How many is too many?

I feel it depends alot on the other factors as well tbh. Average age of accounts is a biggie, sure you may have 4 new accounts in past year but you have 10 years of history with exceptional payment history etc. etc. and you can get approved or you have 1 new account but no real history and a low income and could get a denial. 5/24 may be chase's rule but I think you can realistically go 7-8/24 if you divide it up and have a good AAOA, EPH, not too much debt. There come's a point when you have to figure how much do you actually need at this particular moment in which case 2-3 can be a solid number. I recently opened 5 accounts in the last month but I'd be lucky to even get CLIs in the next year due to AAOA. At the end of the day just use cost-benefit analysis. Think would an extra account here be worth it, how so, how likely does it get approved and what's the cost if I'm denied. If the card or account is worth taking a hit then go, but if you're hesistating and can wait a few months, then wait. A bunch of new open accounts probably means instant denial, but if you are really committed to whatever benefit you could get, then tell your story to a recon line and snag that line. For example, I had 6 inqs but really wanted an amazon card to build chase relationship. Instant denial due to inqs. Called and explained desire to build relationship, use benefits, etc. etc, approved. I can't promise a recon works for anything, but if you want something enough that you're willing to take a hit for it, 1 more account is ok (within reason, like I said don't go above 7-8 because it may cause some doubt) and if you can't accept a hit without the approval and live with that, then wait on applying for a bit. 

Message 3 of 11
Anonymous
Not applicable

Re: How many is too many?

Some issuers have hard limits on how often you can obtain new cards/how many of their cards you can have. Capital One's, for example, is 1 card per 6 months, and Discover is 1 card per year, with a maximum of 2. Beyond that, any issuer will decline your application if they consider, upon reviewing your application, that you've been opening too many new accounts or generating too many hard pulls on your report in too short a period of time - though that, of course, is a subjective judgment for every issuer.

 

The real question to ask is whether the card you're interested in is one that you expect to be using regularly and makes sense for you given the current state of your finances. If the answer is "yes", everything else falls into place in one way or another given enough time and planning. My own sense is that, all things considered, it's better to have a smaller number of cards with higher overall CL's, better rewards programs, no AF's and lower APR's than a lot of low-CL, high-interest cards which may or may not have AF's.

Message 4 of 11
Kforce
Valued Contributor

Re: How many is too many?


@Remedios wrote:
Every creditor is different and every profile is different. There is no universal answer to your question. 

 One thing to keep in mind is you may not be approved for credit when you need it because you over did it when you simply wanted it. 

 


+1,  Exactly

Message 5 of 11
xaximus
Valued Contributor

Re: How many is too many?

As all the above posts have stated, there really is no exact number for what is too many. Every lender is different. I will advise on the following though - Whatever card you choose to get, make sure it has some benefit for you. If it doesn't and you want it just to get it, that isn't worth it IMHO. I'll give you a few examples below (they are of me).

I recently got the US Bank Card - my reason was the cash back and the categories apply to me.
I also have a Southwest Visa Rewards card that isn't that useful to me since I don't fly as much as I used to. I will be PC'ing that to another card or consolidating it soon (once it gets closer to AF time).
I have 6 total cards that are either a) redundant b) no rewards/CB c) inferior to other cards.
The best advice I can offer is - get what you need and has some use to you (travel, cash back, rewards, points, something that you feel that you will realistically use and gain something from).

Good luck.


Scores - All bureaus 770 +
TCL - Est. $410K
Message 6 of 11
Anonymous
Not applicable

Re: How many is too many?


@Kforce wrote:

@Remedios wrote:
Every creditor is different and every profile is different. There is no universal answer to your question. 

 One thing to keep in mind is you may not be approved for credit when you need it because you over did it when you simply wanted it. 

 


+1,  Exactly


Make that 2! 

Message 7 of 11
morgacj2004
Valued Contributor

Re: How many is too many?

As others have said every creditor is different. For me Barclays has been extremely inquiry sensitive while AX doesn't seem to care. Other banks somewhere in between.

AX Hilton Aspire 20k, AX Bonvoy Brilliant 15k, AX BCP 2k, AX Blue Bus Cash 15k, AX Delta Air Platinum 49k, (AU) AX Delta Gold 15k, AX Amazon Prime Bus 25k, BC Uber 29k, AKUSA FCU -10k , CITI AAdvantage Exec World Elite MC 16.5k, Discover (2) 16k, Kohls-4k, VS Comenity $3k, BofA AK Air Siggy 9.8k, WF Propel AX 5k, JCP $10k PFCU Plat Rewards Siggy 39.5k, PFCU Power Cash Rewards AX 10.5k, NFCU Flagship 50k, CLOC 15k, CITI Costco 9.5k, GAP VISA Synchrony $9k,Target MC 9k, Ulta MC Comenity 9k, Pay Pal 1k, CO Venture One 23k, US Bank Radisson Rewards Signature 10k, US Bank Fred Meyers World MC, 11k, US Bank Plat VISA 15.7k, VS Comenity 2k, 240k total available credit. Utiliz-2%, Current FICO EQ-724, EX 763,TU 802 ,Chapt 7 BK D/C 11-2012. Starting scores 520-550
Message 8 of 11
Anonymous
Not applicable

Re: How many is too many?

It definitely depends on the lender. Barclay for example is very new account sensitive while other prime banks not so much.

I’ve opened 13 cards in the last 2 years (9 this year alone). The only lender that has denied me was Barclay. All the other lenders don’t seem to be spooked (Citi, US Bank, AMEX, Chase, Cap One). With that being said, I will certainly be heading to the garden to let my accounts age though.
Message 9 of 11
wasCB14
Super Contributor

Re: How many is too many?

Keep in mind there can be many reasons why someone has, in the issuer's opinion, too many new cards (or cards in general).

 

Is the person a bonus chaser who isn't likely to use the card much beyond minimum spend? An Egyptian disguising growing debt? Is a light spender building a credit empire with no real intention of using much of it?

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 10 of 11
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