Question about number of Credit Cards

[Anonymous]

I have been poking around here on the forums for a while and have noticed something that surprises me. There seem to be a lot of people who have a lot of credit cards. Is there some advantage to having 10+ cards including bank and store cards versus having just a few cards? Frankly, I am pretty happy with what I have as they meet my needs. I am interested if there is something I am missing. 

[kdm31091]

You arent missing much. People like it for a variety of reasons. Utilization, rewards, etc. I feel that spreading your spend across 10 or 15 cards is a waste for most people as far as rewards go, especially since most programs have redemption thresholds. So you should have the amount you are comfortable with and whatever makes sense for your income and spend (a 30k income wont generate meaningful rewards spread across 15 cards, etc).

[Anonymous]

It's simply a matter of personal preference. Nothing more, nothing less.

[CreditMagic7]

With the VARIETY of many different types of today's Credit Card offers be they sign-up bonuses, and/or also Cash Back, Hotel/Airline Points, etc., and given that there are a good many lenders from the Top Listed big ones all the way to mass retail banks (not to mention Credit Unions) most folks especially in this forum tend to build a spread of cards across their profile, each with a different purpose for them that benefits them most.

So as CAPTOOL correctly points out, it's simply a matter of personal preference.

[Discover2016]

When I first got my Discover last year I was just planning on having 3 credit cards. Then I started to do research about AAOA and decided to increase the number of cards to 9 which is what I have now, yes my aaoa is terrible now, but lets say down the line I see a card that I want. By adding that 10th card, it will affect my aaoa less. Also, 9 cards is my limit on what I can manage, some people on here have 20+!

[kdm31091]

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@Discover2016 wrote:

When I first got my Discover last year I was just planning on having 3 credit cards. Then I started to do research about AAOA and decided to increase the number of cards to 9 which is what I have now, yes my aaoa is terrible now, but lets say down the line I see a card that I want. By adding that 10th card, it will affect my aaoa less. Also, 9 cards is my limit on what I can manage, some people on here have 20+!

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Your post comes off as though you apped for 6 more cards strictly to buffer AAOA. I hope you actually had a use for the cards!

AAOA is important, but keep in mind it's still only 15% of your score so having accounts you don't need because of it is IMO not necessary at all.

[lhcole77]

The types of cards I have, amount of cards I have, and times when I app are all strategic.

0. I get to borrow other people's money, interest free for 18-21 months

1. I don't have to fret over UTL--I mean, like ever!

2. I get to check bags for free when I fly

3. I get to board planes ahead of others

4. I get to fly South America for $90

5. I get to fly to Quebec for $60

6. I get to stay in beautiful homes using airbnb for $0

7. I get to treat my parents to trips at no cost to them

8. I get to fly to London for $200 or $600, depending on what airline I choose

9. I get to visit world class museums for FREE! Like as in $0

10. I can have free nights at hotels too if I want. FREE!

11. I get to sleep easy at night knowing that if something were to happen, an emergency to me or my family, I am covered

12. I get to crash cars when I rent them because I am covered with extra damage insurance

13. I get to ______________

14. I get to ______________

100. I get to _____________

100,000....you get the idea...this list can go on and on and on

ETA: Welcome to the FORUMS!!!

[baller4life]

I have multiple cards for the rewards and DIVERSITY. You want a variety of lenders in your portfolio. Never put all your eggs in one basket.

[Discover2016]

@kdm31091 wrote:

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@Discover2016 wrote:

When I first got my Discover last year I was just planning on having 3 credit cards. Then I started to do research about AAOA and decided to increase the number of cards to 9 which is what I have now, yes my aaoa is terrible now, but lets say down the line I see a card that I want. By adding that 10th card, it will affect my aaoa less. Also, 9 cards is my limit on what I can manage, some people on here have 20+!

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Your post comes off as though you apped for 6 more cards strictly to buffer AAOA. I hope you actually had a use for the cards!

AAOA is important, but keep in mind it's still only 15% of your score so having accounts you don't need because of it is IMO not necessary at all.

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I decided to kill two birds with one stone, once I saw that I could benefit by having more than 3 cards I decided to go ahead and get cards that I have always wanted/needed, especially ones with good bonuses. It was win win.

[Anonymous]

We should really sticky an answer to this as it is among the  most common question (now exceeding "How do I contact the Cap One EO".

Basically personal preference, which a number of justifications that you may or may not find convincing!