Question about App Sprees

[jason7613]

Hi, I see a lot of people going on app spree's but had a question regarding them.  I know everyone's situation is different, but growing up I always thought it was better to havew one or two (maybe three) credit cards, and as long as you use them responsibly, there was no need to use other cards.  Obviously things change, better promo's, rates, etc. however it seems as if people ask for CLI's and try to get a lot of cards at once.  My question is why?  Is there a good reason for doing this that I'm missing?  Do people open/close cards when they go on these spree's? 

I am rebuilding and just got instant approved for a Cap One Platinum (2k) and BarclayCard (500).  I also have a secured card for 500 and am an auth. user on another card with a 10k limit.   Should I bother going for more?  Sorry for the ignorance, just looking for clarity. Thanks for any and all replies.

[09Lexie]

The desire to have multiple cards is a personal choice. There are those who have cc's for sign up bonuses, specific needs (travel, cash back) and just like to have a variety.
Whether you need or want more cc's or higher CL's will depend on your cr profile and spending habits.

[jason7613]

I kind of figured that, just wasn't sure if there was another reason I wasn't aware of.  Thanks.

[ForMyBiz]

From the How to Master Your Mastercard Thread: 

1) "Don't apply for credit unless you really need it" is a canard, in almost all cases. This is especially true if you have damaged credit. If you don't have a credit card, you need one. If you only have a couple, you need another one. Why? We all know that getting negative information removed from a credit file is difficult if the information is correct. We also know paying off old debts does little if anything to improve your credit rating. The only lever you have to pull to improve damaged credit is to dilute bad credit history and tradelines with good credit history and tradelines. A credit card is the easiest tradeline to get and manipulate to your advantage.

The only time I would hew to the "don't apply for credit" ideology is if my credit score is already good or excellent, I have several positive TLs already, and I'm about to apply for a mortgage. Yes, in that case, "if it ain't broke, don't fix it." Otherwise, you could use more good history.

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So for people rebuilding it seems to make sense to have lots of trade lines reporting, rather than  just a couple.  Especially if you're trying to to dilute baddies.  In my case, then only negatives on my report are 120 day lates from 2008 student loans, so my thought is if I have lots of on time payments, it makes those lates look less like a problem to a potential lender. 

[jason7613]

Thanks for the reply.  I'm thinking about doing one more app.  Just have to decide where, as I don't want to just apply for anything, but have to avoid Chase, BOA, Amex for a while longer..