Newbie questions: Why so many cards?

[Courtyj725]

Thanks hiline! Great chart, great help! Will re-read, refe rback, analyze and keep in mind.

Alot to process!

[john398]

To answer the title of this post, I think different cards offer different perks

Such as Delta card may give someone free checked bagage or the Target card instant 5% discount or the Total Rewards Card no resorts fees

[Courtyj725]

Thanks for the info and breakdown takeshi.

Much obliged!

I grasp the concept now. I figured large amount of credit cards would be adverse because large amounts of inquiries are adverse but it depends on the AAOA of all the cards and the util amount, not the amount of lines itself. Got good understanding now.

I am indeed in a crash course of how credit scores and ideal credit management works but I'm a quick study.

[Courtyj725]

Thanks for the straightforward and simple John!

It somehow missed me for a second, all those card commercials and perks that scroll by and the idea that "duh, the perks!" is why people have so many.

I guess since I'm in rebuilding mode and the emphasis is so heavy on score, I just naturally assumed havign so many was negative and unneccesary.

But in all honesty, savign where you can on luggage and flights or cash back truly doe smatter. Every penny does these days!

Thanks!

[Razeus]

Just remember, the credit card business is just a game.  Pay on time, keep your utilization less than 20% and you'll be fine.

I've never been able to answer why someone with a better score and cleaner record than mine gets a starting CL of $3k, while I get $10k.  Or why someone with $0 credit gets a starting line of $5k, while someone can't get approved with the same profile.

It's a game.  Just one big game.

[LawStudentCivilis]

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GaTech wrote:
1. I dunno
2. Ppl with FICOs over 800 tend to have 7 accounts (on average)
3. If one card doesn't have a benefit/perk/cash back reward, ideally you'd like to find a card that does to increase your maximum return on using plastic instead of cash.
4. Too many accounts could be looked down upon (or apply for too many accounts in a relatively short period tends to raise red flags to lenders).

As always, your mileage may vary...

#2 only partially true. Fico score holders of 800+ on average have 7 accounts but that includes both CLOSED and open cards.

[HiLine]

What a law student!

To add to that, "accounts" include mortages and other types of debt as well.

[LawStudentCivilis]

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@HiLine wrote:

What a law student!

To add to that, "accounts" include mortages and other types of debt as well.

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^_^ Thanks HiLine

[longtimelurker]

Also, don't think of the posters here (or on similar forums) as representative of the population at large.   I would guess (and just a guess) that the average reader here, when matched for age, income, credit history etc, probably has more cards than a similar person who doesn't frequent such places.  My hypothesis would be that people here:

a) Are exposed to a greater range of information about a larger number of credit cards.  So here the CSP is well-loved, whereas when Joe Smith receives a ad for it in the mail, it may be ignored

b) Reconning.  If you haven't been informed about it, most people would take a rejection as the final word.

c) Comparison with others:    "Mary got that card, we seem to have similar scores and history, I be I can get that too!", and you apply, whether or not it actually makes a lot of sense for you.

[Open123]

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@longtimelurker wrote:

Also, don't think of the posters here (or on similar forums) as representative of the population at large.  

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And, for some of us (I can't be the only one), it's also sort of a hobby; instead of gardening, playing fantasy football, or collecting stamps.

It just so happens with this hobby, the fun is collecting hugely valuable rewards for discounted travel and the challenge of unearthing the best value for all the different rewards. It's like the Sunday crosswords, but lots more fun and rewarding.