New MyFico Trend?? "Less is More?"

[mitchblue]

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@manyquestions wrote:

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@Anonymous wrote:

I believe some of the changes this year like 5/24 and CapOne's 6 months between applications is driving a lot of the "less is more" mentality - at least it is for me.

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Add in AMEX's one bonus per lifetime, and Citi's limits on the amount of time required between cards along with new limits on one bonus per card family,  and people like me who have run the table on bonuses available from the major banks don't see many cards that are worth getting.  I think there have always been groups of posters who favored only one or two or three  or five  or 20 cards, and others who favored getting a lot of cards for bonuses, but now the card companies are throttling the option of lots of cards for the bonuses.

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My new plan, has been for some months, is to make sure my total CL doesn't exceed a certain amount. So I've had cards where I closed and didn't transfer the CL to another, didn't ask for 3x on Amex, and even turned down CLI. I don't make a whole lot of money and I don't want any CLD or cards just closed because I over extended myself..  I happy where everything is now, I don't want any disruptions.

[Revelate]

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@mitchblue wrote:

My new plan, has been for some months, is to make sure my total CL doesn't exceed a certain amount. So I've had cards where I closed and didn't transfer the CL to another, didn't ask for 3x on Amex, and even turned down CLI. I don't make a whole lot of money and I don't want any CLD or cards just closed because I over extended myself..  I happy where everything is now, I don't want any disruptions.

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What is your line for that?  I'm still figuring out where mine is though I have a theory that I'll pare down to around 100k in limits (from the ~170k I'm at now).

[Anonymous]

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@Revelate wrote:

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@mitchblue wrote:

My new plan, has been for some months, is to make sure my total CL doesn't exceed a certain amount. So I've had cards where I closed and didn't transfer the CL to another, didn't ask for 3x on Amex, and even turned down CLI. I don't make a whole lot of money and I don't want any CLD or cards just closed because I over extended myself..  I happy where everything is now, I don't want any disruptions.

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What is your line for that?  I'm still figuring out where mine is though I have a theory that I'll pare down to around 100k in limits (from the ~170k I'm at now).

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Another way might be to avoid the whole concept of "total CL" which really doesn't mean much.   Go for the desired CL on each card (those saying each card has a purpose should also have some idea of what CL gives all the benefit of that purpose) and let things sort themselves out that way.

[Revelate]

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@Anonymous wrote:

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@Revelate wrote:

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@mitchblue wrote:

My new plan, has been for some months, is to make sure my total CL doesn't exceed a certain amount. So I've had cards where I closed and didn't transfer the CL to another, didn't ask for 3x on Amex, and even turned down CLI. I don't make a whole lot of money and I don't want any CLD or cards just closed because I over extended myself..  I happy where everything is now, I don't want any disruptions.

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What is your line for that?  I'm still figuring out where mine is though I have a theory that I'll pare down to around 100k in limits (from the ~170k I'm at now).

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Another way might be to avoid the whole concept of "total CL" which really doesn't mean much.   Go for the desired CL on each card (those saying each card has a purpose should also have some idea of what CL gives all the benefit of that purpose) and let things sort themselves out that way.

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Good point, though I think both play from our discussion on the other thread as lenders do look at total exposure; like you I fully agree that more than 1-2K on something like a Freedom or other quarterly capped rewards card (at $1500/qtr at least) is superfluous and how much gas are most people really buying on a card used mostly for that... whereas the default spender, travel card if you're into such things, and a balance carrying card all could use big lines as 3 common examples.

I certainly have no intention of winding up at 5 x 20K or 10 x 10K when I'm done tweaking personally as an example.

[Anonymous]

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@Justagirl73 wrote:
@Anonymous 😂 @Austin comparing cc approvals to crack! I literally imagined Pookie from New Jack City saying "come on, I just need one more!" 😂

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[grillandwinemaster]

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@Revelate wrote:

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@Anonymous wrote:

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@Revelate wrote:

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@mitchblue wrote:

My new plan, has been for some months, is to make sure my total CL doesn't exceed a certain amount. So I've had cards where I closed and didn't transfer the CL to another, didn't ask for 3x on Amex, and even turned down CLI. I don't make a whole lot of money and I don't want any CLD or cards just closed because I over extended myself..  I happy where everything is now, I don't want any disruptions.

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What is your line for that?  I'm still figuring out where mine is though I have a theory that I'll pare down to around 100k in limits (from the ~170k I'm at now).

---

Another way might be to avoid the whole concept of "total CL" which really doesn't mean much.   Go for the desired CL on each card (those saying each card has a purpose should also have some idea of what CL gives all the benefit of that purpose) and let things sort themselves out that way.

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Good point, though I think both play from our discussion on the other thread as lenders do look at total exposure; like you I fully agree that more than 1-2K on something like a Freedom or other quarterly capped rewards card (at $1500/qtr at least) is superfluous and how much gas are most people really buying on a card used mostly for that... whereas the default spender, travel card if you're into such things, and a balance carrying card all could use big lines as 3 common examples.

I certainly have no intention of winding up at 5 x 20K or 10 x 10K when I'm done tweaking personally as an example.

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Interesting point, Revelate...

So you're saying that 1 to 2k is sufficient on a freedom, or other category card due to the quarterly limit imposed by the issuer? I hadn't really thought of it this way, but it makes sense...

Either that, or I've had too much to drink and my judgment is getting clouded on this new years eve holiday! Lol

Either way, good point!

[Anonymous]

A recently published article indicated the majority of transactions were with debit cards.  Fine by me.  Leaves more sign on bonus on the table for me.  I wouldn't say that my wallet collection is overkill, but I did start off fast and eventually slowed down on apps.  Each one serves a purpose.  Some people might have a line of credit with their bank, but my CU card functions as such and eliminates the need for that.  I also am in tune with interest rates. The news of the last increase with threats of 3 more increases just reinforces the importance of evaluating what your needs are.  If you can afford to pay in full then in most cases you should.  But for some people all of their monthly income does not come every week or two like clockwork. They may be penalized to access it early.

I think its imperative to be educated on the risks and benefits and read all the fine print.  I see no harm in a person that does not need to get a mortgage or apply for a job in finance that closely reviews their CRs to take advantage of what is out there. Checking account sign on bonuses, high yield checking accounts, credit card sign on bonuses, etc.  Using money to make money. Having extra passive income and having that earn even more interest.  6 month emergency savings is the first thing anyone should focus on before they start adding tons of cards.

I have redundancy in category coverage but who is to say the duplicates will last forever?  I have enough expenses as it is and I think it is paramount that I be rewarded as much as possible for them.

A guy made almost ten thousand dollars in a five day period. It was completely legal.  Some of it was using credit cards, some of it was using debit. When opportunities arise you should strike while the iron is hot.  But make sure you aren't going broke with some untested method or sale.

I avoided credit cards for years. I hated the idea of them.  Once I realized they were the missing puzzle piece to my extreme couponing I was hooked.  I have been able to have experiences in life I wouldn't normally get to have, but mostly those experiences were a tier or two above what I would have been able to afford. I no longer have to worry about paying off a credit card multiple times per week, and balance my check book to the last penny to know what I have.  I have accounts maxed out earning 5% interest, and several others earning 2 to 3.  5 amex cards is a little much but each one has its use.  Amex offers are basically a portal to more coupons that stack.  Pair that with shopping portals and/or buying discounted gift cards, and I have saved even more.  But I do not live beyond my means. I live beneath my means.  If I am not taking public transit, I am using an old car or car pooling, live in an old home that has been updated to be energy efficient, do not buy clothing very often, etc.  Once in a blue moon I will treat myself to something nice. And it is just like clockwork that an opportunity presented itself to offset that treat substantially so I don't have to worry about it.  I have to remember those offsets don't happen every day though!  Most of the time it is reusing and repurposing.

I am thankful that I was able to get 90% of my entire family's christmas gifts this year at a significantly reduced cost (and not just gifts from me, gifts for the other adults to give to save them money).  Lots of items from macys that were either 5 or 10 dollars, included  5 or 10 dollars in macys cash. I was then able to use up to 5 of those macys cash coupons per order on top of a macys coupon, pay whatever was left in plenti points that I got 50% more by transferring amex MRs, and by keeping lots of orders around $50 total, I received countless $20 paypal rebates from retailmenot.  That was magical!  Once I calculated what we would have spent overall before any rebates, I put that money aside and may donate a portion, invest the rest, I have yet to decide.

If you are a busy person and make well into the six figure mark and don't have much in the form of free time, then by all means, Less is More.  But it all comes down to how much you want from life and what kind of life you want. If you want to live a more simple life with less stress, be selfless from time to time, and try new things, etc.  It is very easy for people to get confused. If they get a Chase Sapphire Reserve they might think they have to go spend $4000 on new furniture that they didn't need and can't afford. When in reality they could have prepaid their some utility bills, insurance, stock up on heavily discounted gift cards for the places they shop at already.  Take the bonus, put what you can in high yield checking.  Use coupons and shopping portals when you are paying with those discounted gift cards.  On the flipseide, at least they did make an attempt and hopefully cashed in all their points to avoid paying as much interest as possible.

I think there is a significant portion of the population that is less selfless.  They only worry about one or two people.  Me, I would do anything I can for someone and not only if they have helped me when I needed it.  The chinese housekeeper at the hotel I stayed at in hawaii this summer was very sweet. She worked hard and met every accomodation (and there were a few).  She kept saying please remember to take care of your parents (that is the only reason I indicated her ethnicity because Chinese culture reveres the elderly). It was clear that it looked like 4 youngish people were on some vacation in a beautiful place possibly living beyond their means, when they could have included their family.  I explained to her, that is mostly what I do when I am not working, taking care of our parents, in laws, and so on.  I needed a vacation from that. She laughed, and gave me several CDs with hawaiian music and extra goodies. We left her a $100 tip and secretly stuffed it into her pocket.  I know there was a lot of activity in and out of the room coming from the beach, and I am sure some sand in places I did not think to check.  She was working to put her daughter through college.  I hope the review I left for her helped her out in some way.

As long as we keep talking, having real conversations, where we speak to one another, instead of over one another, and remain teachable, that is all that matters.  I am looking at all the cards I have and I can't see a single one that doesn't have a purpose. I don't need the care credit but I know a family member will, or maybe I might have something unexpected come up.  I would rather let my money stay in the bank and earn interest instead of paying it in full, unless I was working towards a sign on bonus, that would be different.  I am sure I could get more into investments beyond motif and lending robot, and that is a goal for 2017. Capital One is about the only card I am the least satisfied with at the moment.  They refuse to reduce my interest, and its probably because I don't pay any.  I do not like that they encourage folks to apply for another card of the same, when they could use an inquiry to modify what a person already has.  I can't wait until Februrary when my sams club check comes. I think I hit over $300 on there, which is not bad considering I only had the card since the end of May.  I got a coupon in the mail today to take 300 off per hearing aid.  My dad refuses to deal with that, so I will probably end up using those coupons and puting them on my double cash for the extended warranty.  Otherwise I would use the special financing option on the sams mc, but no free ext warranty.  What is with this world that hearing aids aren't part of insurance?

I am a mixture of suze orman and a little ramsey.  If you have absolute control over your spending, then why not make the most of credit inquiries?  The only thing a 850 credit score can do is go down.  So why not?  I think 5 years ago if I had what I have today, I probably would have been a little overwhelmed.  I would have probably tried to combine 5 apps when I applied for the Merril Lynch card. But at least now I know I will probably get $500 off my income taxes, or maybe $800ish towards two plane tickets! Kinda the first time I have ever looked forward to paying bills.  So weird!  Paying cable bills, getting excited about getting 10% off, or Verizon $25 off several times and 2500 MR points several times.  It's winter, so I am going to treat myself with cable until spring.  But then it will be antenna tv and internet only for me thereafter!

Happy New Year everyone!  Especially to the mods that have to deal with all of our rants, and editing out what is not appropriate!  That is a lot of hard work!

[SouthJamaica]

So far, in my experience, the only lenders who complained about my having too much available credit have been credit unions. I've never heard that from a bank.

[bdhu2001]

I think it depends on where you are at the moment.  I've always been of the opinion that you don't use more than three cards, but I have other cards for backup.  In addition, I have AUs on my cards and only give them access to cards that I don't use. Right now my #1 go to card is CapOne, because of the points.  I use my CitiVisa at Costco & restaurants. My Amazon Visa is used for my Amazon purchases.  

My kids use my AmEX card. If I could wean them off of the AmEX, I would use it for groceries that aren't Costco.  I get anxious when more than three cards have charges on them.  Thus, I can't handle using more. Even though, I have minimum pay auto scheduled on all my cards and actually pay them off every month, I have a fear of a payment being missed.  

In 2009 cards credit lines got reduced on my discover card and a master card wanted to start charging me a fee (I closed the fee card).  Since then, I have no problem with having backups, because banks will do things for reasons only they understand.

[Anonymous]

Well, in 5 days it will have been a full year since my last card was opened.  I currently have 7 cards total - two of which are not keepers but not ready to toss just yet.  6 of my 7 are are less than two years old though as that is when I started my credit building journey.

On average in the future I will have 8 cards or so that are keepers, and likely one or two extra opened for bonues and the like that I will never keep long term.  In five months I will get three more "keeper" cards as I'll be out from under the 5/24 rule finally.  Hard to wait, but it will be worth it for me anyway in the end.

I have no store cards and likely never will, and there will be 3 or 4 cards rarely used but I like them for hotel status and yearly free nights for example.  I will keep them but not for normal spending on.  This number will work for me, I will have 10 cards with 6 seperate banks which I have no issue managing personally.  All will have thier specific reason for me to keep them and I am confortable with my plan.

I am "less is more" to an extent, but I like having history with multiple banks and the extras some cards have as benifits.  I am by no means an addict, I do not apply other than for good reason and do not randomly apply.  I pay in full each month every single card.  I enjoy a hobby that pays me back and aids my credit socre which saves me money in other areas, like buying a car or home.  All in all it has been well worth my time and effort and I am extrmemly happy that I took the time to learn the ins and outs of credit cards.