Risks with multi cards same creditor?

[Fico2Go]

I have been noticing that some board members have 4-8 products from the same lender or creditor.  Pardon my ignorance on this topic, but it just seems a bit risky to have all the eggs in one basket. What if one day that creditor decides to do AR or FR and cancels most or all of the accounts.  What is the possibility that such an event can take place?  

I understand the value in creating a strong relationship with a prime lender but are there other reasons besides that are useful to us as account holders?

[Anonymous]

It's definitely risky to have all your eggs in one basket, and there have been anecdotal reports of people getting their entire relationships terminating for ambiguous reasons. The benefits of having several cards with one lender are simplicity (single online login), relationship building (banking/investments at the same bank, possibly better service by being a better client), and multiple cards on the same rewards platform.

For example, most of my Chase/JPMorgan cards are on the Ultimate Rewards points program, so I can combine all the points I earn. Between all the cards I have, I'm getting spending bonuses on the vast majority of my spending, and accuring those points in one bucket. I find it elegant.

[Anonymous]

Yes, I think you need to distinguish between two cases:

1) Having multiple cards from one issuer

2) Having all (or nearly all) of your cards from one issuer.

1) makes perfect sense, different cards may have different reward categories etc.  There is a risk that multiple cards can suffer AA, but you will be left with others (at least for a while!)   People with lots of cards tend to fall into this category anyway.

I don't recommend 2.  You need issuer and network diversity.

[Fico2Go]

thank u Bribro ans LTlurker,

Bribro, When I first came to this forum about a year ago seeing your siggy inspired me to keep on with my goal of restrenghthening my credit.

Your pt is well taken and makes sense.

LTlurker, Recent activities by Barclay and other creditors...with their cancellation without notice .. scare me a bit. I can only imagine having 5 accounts with them, waking up to find everything is locked and closed.

What a nightmare that would be.

[Anonymous]

Chase and Citi have also done the same, closing all accounts and banking accounts too, so I agree you don't want ALL cards from one lender.  But if you have 15 cards, and Barclays closes five, that would suck, but not be a disaster.

[Luscher]

I agree not having all your eggs in one basket unless you decide to go with chase, cause there the best. [100% unbiased ]

[Fico2Go]

I wonder if there is any advantage to asking a creditor to consider adding a new product under an existing accountholder..without actually going through a formal application ? Possibly avoiding a hard inquiry.

This would be a risk worth taking.

[Walt_K]

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@Fico2Go wrote:
I wonder if there is any advantage to asking a creditor to consider adding a new product under an existing accountholder..without actually going through a formal application ? Possibly avoiding a hard inquiry.

This would be a risk worth taking.

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Not sure what you mean.  Are you talking about adding an authorized user?  Or are you talking about getting a new card but asking them to open it without you applying.  Most (all?) lenders are not going to do the latter.  

[Fico2Go]

Walt..I was referring to the latter.

Just a thought but would be a huge back door if possible. If any of our forum friends knows how to make this possible plz kindly suggest how.

[Anonymous]

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@Luscher wrote:
I agree not having all your eggs in one basket unless you decide to go with chase, cause there the best. [100% unbiased ]

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Chase is happy to shut down all cards (personal and business, and often bank accounts) for things they don't like.  So you would have to be "good" without always knowing what is "bad".