Question - How many are too many credit cards?

[thomcoogan]

Hello!

My fiance is worried about getting another card to transfer our balance once the intro 12 mo/ 0% interest wears off...

I'm getting married in about 10 months and along with all the normal conversations that go along with future wedded bliss, the credit topic has come up more than a few times recently.  We have a joint Chase Sapphire 0% interest for 12 mos ($6000 limit) that we have used for a lot of wedding expenses.  My opinion, is to open a new 0% balance transfer card once the chase 0% interest expires, moving all of our wedding expenses, hopefully avoiding the accrued interest.  She is a little new to using credit, and is worried that opening up another card is going to hurt her score (in 2-3 years we would like to purchase our first home).

I'm hoping a few commenters can help us figure out the correct answer!

Background on us:

My fiance is 25 with stellar credit (720-775), but a relatively short history (3-4 years) with only a car loan almost paid off and two credit cards (wells fargo $2500 and the chase $6000) usage is around 40%

I am 32 with ok/rebuilding credit (665-680) 14 year history with $20k left on car loan and 3 credit cards (capital one secured $300 / capital one quicksilver $1500 / discover IT $6000 and authorized on the chase) usage is around 75%.

Everything the last 3-5 years paid on time, only baddies are student loans from 14 years ago, even after rehabbing are still showing up negative.  

Any info helps.

Happy Thanksgiving ya'll!

[Anonymous]

Other commenters may disagree, but I'd say you're good for an app spree. There's no magic number for "too many" cards. Having more cards is actually better. The only bad thing is the inquiries, which have little affect after 1 year and fall of of your report in 2 years
App away!

[Anonymous]

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@thomcoogan wrote:

Hello!

My fiance is worried about getting another card to transfer our balance once the intro 12 mo/ 0% interest wears off...

I'm getting married in about 10 months and along with all the normal conversations that go along with future wedded bliss, the credit topic has come up more than a few times recently.  We have a joint Chase Sapphire 0% interest for 12 mos ($6000 limit) that we have used for a lot of wedding expenses.  My opinion, is to open a new 0% balance transfer card once the chase 0% interest expires, moving all of our wedding expenses, hopefully avoiding the accrued interest.  She is a little new to using credit, and is worried that opening up another card is going to hurt her score (in 2-3 years we would like to purchase our first home).

I'm hoping a few commenters can help us figure out the correct answer!

Background on us:

My fiance is 25 with stellar credit (720-775), but a relatively short history (3-4 years) with only a car loan almost paid off and two credit cards (wells fargo $2500 and the chase $6000) usage is around 40%

I am 32 with ok/rebuilding credit (665-680) 14 year history with $20k left on car loan and 3 credit cards (capital one secured $300 / capital one quicksilver $1500 / discover IT $6000 and authorized on the chase) usage is around 75%.

Everything the last 3-5 years paid on time, only baddies are student loans from 14 years ago, even after rehabbing are still showing up negative.  

Any info helps.

Happy Thanksgiving ya'll!

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As many as you can handle at the same time.

[chalupaman]

I think it's all subjective and what you think you'll be able to manage. Some people feel much more comfortable just having 4 or 5 cards and not having to deal with many issuers while I'm more of a type of person that likes having relationships with different kinds of banks and having alternatives available in case something happens.

[Anonymous]

I'm honestly more concerned with how you have $20k left on an auto loan. 

Remember that the balance transfer has to be complete BEFORE your intro 0% APR runs out on the first card. You'll probably need to get the ball rolling about a month ahead of time. 

[msbia]

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@thomcoogan wrote:

Hello!

My fiance is worried about getting another card to transfer our balance once the intro 12 mo/ 0% interest wears off...

I'm getting married in about 10 months and along with all the normal conversations that go along with future wedded bliss, the credit topic has come up more than a few times recently.  We have a joint Chase Sapphire 0% interest for 12 mos ($6000 limit) that we have used for a lot of wedding expenses.  My opinion, is to open a new 0% balance transfer card once the chase 0% interest expires, moving all of our wedding expenses, hopefully avoiding the accrued interest.  She is a little new to using credit, and is worried that opening up another card is going to hurt her score (in 2-3 years we would like to purchase our first home).

I'm hoping a few commenters can help us figure out the correct answer!

Background on us:

My fiance is 25 with stellar credit (720-775), but a relatively short history (3-4 years) with only a car loan almost paid off and two credit cards (wells fargo $2500 and the chase $6000) usage is around 40%

I am 32 with ok/rebuilding credit (665-680) 14 year history with $20k left on car loan and 3 credit cards (capital one secured $300 / capital one quicksilver $1500 / discover IT $6000 and authorized on the chase) usage is around 75%.

Everything the last 3-5 years paid on time, only baddies are student loans from 14 years ago, even after rehabbing are still showing up negative.  

Any info helps.

Happy Thanksgiving ya'll!

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I would probably work on getting util a little lower before going on a spree. Your fiancee should be good to go.

[Anonymous]

Lol. I have two auto loans with over $20K owed on them.

[bada_bing]

Number of cards is irrelevant. Get as many/few as you are comfortable managing.

For a newly married couple, it looks like you could use a grocery/gas card and maybe

a travel card. A Sallie Mae card each might be a good app right now.

Payment habits are the core of good credit and good finances. I'd strongly recommend

having discussions about what credit spending & payment habits you two intend to follow.

I also stongly recommend adopting a PIF lifestyle from the beginning with your credit cards

and keeping car debt down/eliminated. Car loans and credit card debt become a real financial

drag and cost big bucks over the long haul. It's easier the sooner you commit to and get

started on it.

As far as a mortgage and homebuying, the 12 months prior to applying for the mortgage

are all that really matters as long as you aren't carrying major derogs on your reports. I'd

just keep derogs off your reports and check in with a mortgage broker for advice about 13

months prior to an anticipated mortgage app.

Congrats on the upcoming wedding.

[LexieCat]

I got a very small ding in my scores the last couple of months from opening a couple of new card accounts, but this morning found that after taking advantage of a recent BT offer, my scores jumped back up higher than the were before the apps.  So even a small reduction for the inquiry is easilly offset by the greater amount of available credit.

I think the biggest danger in having too many cards or moving balances around all the time, is that it can feel like you've got an awful lot of spending power.  So if you DO open up a new card to transfer the wedding bills to, I'd suggest you work on getting that balance down/paid off as quickly as possible.

One other thing, you alluded to avoiding "accrued interest" on the Sapphire once the promo period expires.  You shouldn't HAVE any "accrued interest"--you will just have to begin paying interest at the regular purchase rate.  Sometimes there are special financing offers where interest DOES accrue and you will have to pay that if you don't pay it off during that period.  But I believe a regular BT offer just continues at the promo rate until it expires and then the regular rate kicks in after that.

[takeshi74]

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@thomcoogan wrote:

How many are too many credit cards?

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There is no X that applies for every person.  This is a very common topic so don't overlook prior discussions.

High utilization is really what you should be concerned about IMO.  40% is high.  75% is very high.  High utilizaion will not only impact approval odds but the limit and APR that you might qualify for.

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@Anonymous wrote:

I'm honestly more concerned with how you have $20k left on an auto loan. 

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Why?  I have one with over $30K.  Cars come in a wide range of prices.

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@LexieCat wrote:

But I believe a regular BT offer just continues at the promo rate until it expires and then the regular rate kicks in after that.

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All depends on what is stated in the BT terms.