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Quantity of Credit Cards

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Frequent Contributor

Re: Quantity of Credit Cards


@Shooting-For-800 wrote:

Utilization

Flexibility

Different networks (Amex, Disco, Visa, MC)

Different rewards (gas, dining, travel, groceries, etc.)

0% Promos

SUBs

Eggs not in same basket

Addiction

 


This.

 

I started out building credit from nothing....meaning no credit history. I researched credit for about 6 months before I ever took my first step becasue I wanted to make sure i took relatively good steps and didn't damage my profile in my attempt to build it. After my research, there were several things I wanted to accomplish and I think @Shooting-For-800 pretty much summed it up here.

 

I have 10 cards now which is pretty much my comfort threshold. Through my building, my goals pretty much put me in the "cashback chaser" category. I like spending the same money twice. I knew I wanted to make sure I stretched my credit over all networks (Discover, Visa, MC, Amex) so I would have exposure with all of them on my credit reporting. I also wanted to spread my credit over multiple lenders, also to have more exposure for my reporting. You'll notice I don't have 2 cards with any one lender.....although, I would for the right card.

 

You can pretty much see from my siggy that my cards are targetted to category spending. I am very calculated with which cards I choose to apply for and spend a lot of time researching this forum and other sources before I make any moves. Almost every card I chose had some sort of 0% APR promo which also helped me make some larger purchases with no interest paid. And most of them also had some kind of SUB offer, as well....which is a nice bonus. Now I have about 90% of my organic spend covered with my category cards.

 

Ultimately, I will be carrying 4 (maybe 5) in my wallet at all times for everyday category spend. The rest stay at home for other categories such as Utilities, Online shopping, Rotaters that don't benefit me this quarter, etc. 

 

Collectively, the total credit limits across all your cards reduces your overall utilization. This is a big factor for why most of us are endlessly trying to either attain new cards or get CLI's from current lenders.

 

But for the life of me, I can't figure out why @Gmood1 (yeah, I'm looking at you) has so many daggum cards. That would just be way too much for me to effectively control. 10-12 is my limit....and I do have some sock-drawered that could be closed if the next new thing came along.

 

OP - Just do what is comfortable for you. Decide what your personal goals are for your credit profile and don't push yourself beyond your own comfort threshold. Honestly, If I had to cancel all of my cards but one, I could survive with only my AOD 3% Visa.  The Precious.

 

Current Wallet
Sock Drawered


Message 21 of 71
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Community Leader
Super Contributor

Re: Quantity of Credit Cards

@Taurus22 

Lol, for the life of me, I don't understand why you have so few.😉

 

What you and others don't see is the massive amount of banks and CUs associated with a lot of my cards.

 

Not only do I collect cards. I collect bank accounts. For nearly every card in that deck. There is or was bank account associated with it.

 

You got to look beyond the cards young Skywalker.😉

Message 22 of 71
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Frequent Contributor

Re: Quantity of Credit Cards

I discovered this message board in Jan 2015 when I only had 3 Capital One credit cards to my name, some pretty bad credit, and more than 15 deliquent/negative accounts. I used it for rebuilding and was finally able to grab up some decent cards. I then discovered points and miles and how I could earn then with spend and SUBs to travel for free... then I learned what elite status was... then I discovered luxury travel cards like the Platinum, CSR, and Prestige... free night certificates... so on and so forth. It eventually led to an addiction (and my website) and it became a habit to just apply for cards for SUBs, perks, and rewards as it was (and still is) exciting to do. That fresh card smell when it arrives in the mail... ahhhhh Smiley Very Happy

 

It's led me to have more cards than what I actually need, but I come out positive every year so it's all good in the long run. The addiction has slowed down some, but I'm under 5/24 for the first time since 2015 so once travel picks back up... *glares at Chase* Smiley LOL

[11 AMEX] 58.5k + NPSLs // [1 Cap One] 23.25k // [2 Discover] 15.9k // [2 Barclays] 10.15k // [3 Citi] 18.8k // [2 Chase] 24.5k // Amazon 6k
Starting FICO Scores: EQ 595, TU 625, EX 604 (01/14/15) w/ Total CL of $1.3k
Current FICO Scores: EQ 651, TU 660, EX 651 (04/05/20) w/ Total CLs of $169.1k
Owner of The Point Calculator. Calculate credit card rewards based on your spend, compare credit cards side-by-side, and search for the best cards based on spend.
Message 23 of 71
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Frequent Contributor

Re: Quantity of Credit Cards

@Gmood1 

Lmbo! I follow ya....

 

But that's my point....how the heck do you manage all of that? I have 3 CU/Bank accounts and it's already more than I want. Just figuring out how to split my direct deposit to effectively fund them was like a hybrid chess/suduko match. Lol.

Current Wallet
Sock Drawered


Message 24 of 71
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Super Contributor

Re: Quantity of Credit Cards


@Taurus22 wrote:

@Gmood1 

Lmbo! I follow ya....

 

But that's my point....how the heck do you manage all of that? I have 3 CU/Bank accounts and it's already more than I want. Just figuring out how to split my direct deposit to effectively fund them was like a hybrid chess/suduko match. Lol.


@Taurus22 

Brother I know people that can't manage one bank account!!

 You're good!😆

When I said this was a hobby I really mean it.

It's something I enjoy doing. 

Guys spend $50k on ranger boats everyday. I don't get it either. But I don't knock them for doing something they love.

Everyone should have a passion.

What is work for others is just a challenge for me.

 

I had to stop using my mint app. It can't handle downloading information from 80 different accounts at once.😂

Message 25 of 71
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Super Contributor

Re: Quantity of Credit Cards

For me, the number of cards doesn't matter as much as overall reward/benefit complexity.

 

When I had a CSR, CSR/Freedom/CFU felt like one card to me. One login, one AF, one rewards currency.

 

I can't really say the same for Amex with its hoops and quirks...just that I don't really mind those particular hoops and quirks.

Spend: BofA PR + WWFCR, BBP, Schwab Platinum, Freedom x 2, Costco, Discover
Perks: IHG49, Hyatt75, Delta Platinum, "Old" SPG95
SD/AAoA Ballast: Arrival, CFU, DC, ED, QS
Upgrade/downgrade games: BCP
Mostly earning MRs and cash back as I use up hotel and airline points spread across several programs.
Message 26 of 71
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Contributor

Re: Quantity of Credit Cards

The more lines of credit you can have, the better.  There are several benefits and only 1 drawback i can think of and that is if you are not disciplined or have awful luck you can get yourself in insurmountable debt.

 

That said:

 

-It takes a long time to overcome bad credit.  the quickest way to overcome bad credit is to dilute it with good credit.  if you have 3 cards and 1 is maxed out your aggregate will also shoot up, reducing score.  if you have 20 cards and 1 is maxed out you can still be at under 9% utilixation

 

-the more cards you have the more opportunities for CLIs and high limits.  the higher the limits the more buying power you have the more ability you have to take advantage of things, manipulate scores

 

another example.  your car finally dies.  you need an auto loan.  you have a solid score that should land you 3-4% apr.  then, BAM medical emergency and you had to run up balance on a card.  because you have few cards this spiked your util and now your score drops and your auto finance is now like 7% APR.  

 

if you had more credit cards and higher overall limits, that short term medical cost wouldnt move your score much and your still qualifting for 3-4%

 

short and longterm it allows you to dilute bad credit or unexpected balance spikes



Message 27 of 71
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Frequent Contributor

Re: Quantity of Credit Cards

@Gmood1 

 

Hey I'm certainly not knocking anything. That's a massive hobby, my friend. Smiley Very Happy   Credit has somewhat become a hobby for me, as well......just not quite on your level....lol.  I enjoy hovering over your siggy actually.....keeps me in check and reminds me that I need to be in the garden with a jack-n-coke and a few of my other hobbies.

 

You are motivation...

Current Wallet
Sock Drawered


Message 28 of 71
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Regular Contributor

Re: Quantity of Credit Cards

As long as you are net positive financially there is no real limit to the quantity.  

 

Still, keep it real and keep it perspective. 

If financial gain is your only goal you will be facing diminishing return after, say, 8, 10 cards.  Your goal may very well be better served by investing your time and effort toward other activities, such as career moves, investment options, etc.  At some point credit card strategy becomes a hobby with benefit.  That's where I am and that's how I see my cards. 

 

As far as hobbies go, we have it made.  Thank about it, most hobbies would cost you money and yet here we are, having fun and laughing all the way to the bank!  Smiley Very Happy

 

 

Message 29 of 71
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Super Contributor

Re: Quantity of Credit Cards


@Taurus22 wrote:

@Gmood1 

 

Hey I'm certainly not knocking anything. That's a massive hobby, my friend. Smiley Very Happy   Credit has somewhat become a hobby for me, as well......just not quite on your level....lol.  I enjoy hovering over your siggy actually.....keeps me in check and reminds me that I need to be in the garden with a jack-n-coke and a few of my other hobbies.

 

You are motivation...


@Taurus22 

😂😂 Good one!

I never said it was my only hobby.😉

Message 30 of 71
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