Why So Many?

[Anonymous]

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@Anonymouswrote:
1 to 5 lines of credit hurts your credit score.

The more lines of credit you have the more it helps. I believe it tops out at 21 though.

Just be sure to pace yourself as to not nuke your average age of accounts to the stone age as that will hurt your Credit Score along with all those hard pulls.

I would wager that most people here only use 2-6 cards monthly after the sign up bonuses are depleted anyways. The rest are sock drawered.

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This is misinformation (from Credit Karma perhaps).    There are scoring reasons to have at least 3 (so you can avoid penalties for having all cards with 0 balance, all cards with balances, half your cards with balances.  You cannot avoid all three with 1 or 2 cards!) and some say 5.

Number of cards doesn't influence score in any other way.  

[Anonymous]

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@fltireguywrote:
Why so many?
Because I can

(37 cards)

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But you could also (presumably) have 6!

[Anonymous]

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@Anonymouswrote:

I'm sure it's different for everyone but these seem to be the primary reasons:

1.  More accounts in good standing = higher scores, up to a point.  Some people chase high scores, and have multiple cards/trade lines for that purpose.

2.  Utilization:  more cards = more total credit available, meaning everyday spending doesn't run the utilization up so high to lower one's scores.  This is also related to #1 (high score chasing).

3.  Rewards chasing:  different cards have different rewards for different types of purchases.  People will carry multiple cards and pull out the one that gives the best rewards for the money they're spending and where they're spending it.

4.  Sign-up bonuses:  Much like rewards chasing, but requires opening new cards.  There are some deals to be had out there.

5.  Ego boosting.  Yes, we all have them, and some are "fed" with more cards/higher credit lines.

6.  It's a hobby or obsession for some... much like collecting stamps, or cars, etc.  Some people collect credit cards.  Also related to #5.

7.  Building or rebuilding.  Related to #1 above, but some of us have come out of a bankruptcy or other credit related issue, or are just starting out with no credit and are working to build their credit.  The older cards may be starter/secured cards with low limits, and as scores improve, they apply for better cards, but keep the older ones so that AAoA doesn't take too much of a hit.

The average American (not on MyFICO) generally has 1-3 cards, so the 20+ card jockeys are the exception rather than the rule, overall (though not on this forum).  I'm just average myself, on # of cards, and below average on total credit lines, but that was my choice.  I'm the opposite of most here, I'm happier with fewer cards since it means fewer bills to pay, fewer due dates to keep track of, etc., and lower limits so I don't overspend.

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I think this is a good description. I agree with a lot of these points.  

[digitek]

I'd be #3 on this list.  Tried to optimize cashback, if it was 5% or more in a category I use pretty often I'd snatch it up.  Was(is?) kind of an OCD thing.

Now I can move on to being a #4...  I guess I just recently started getting cards for SUB, picked up Amex Delta Gold and Amex Delta Plat while the sign-up bonuses are high.  Incredible deal.

[Anonymous]

I have gotten 12k worth of sign-up bonuses in the last 11 months.  That is why I have so many.  

[Anonymous]

That is a question that is going to have a very different answer from person to person depending on what your goals are.  For me personally, every card has a purpose, and with everything in life that purpose varies from card to card.  I was building my credit at one point from what seemed like a never ending string of bad credit decisions that haunted me starting in college. 

My oldest cards are all sub-prime cards. As my credit improved and I was able to get better cards, I did.  I've only just this year closed a Milestone Card, First Premier Card, and Capital One Platinum Card.  These cards were all $500 or less and had annual fees that ranged from $55-$140 a year. I kept them to keep the AAoA as high as possible throughout the years; although, I could have let them go years ago and would have been fine.  As my credit started improving and I could get better cards, I wanted them.  After eating vienna sausage for some time, you are going to over indulge in kielbasa when it's offered. 

I personally am also a rewards chaser.  I have had a lot of "free" and upgraded travel off reward miles and points.  The sign up bonuses are short lived, but once you have the card you have it, and it the cost of having it is outweighed by the benefit, you keep the card.

For example, I have a Delta Gold Skymiles card that costs me $95 a year. I have been able to get the fee credited for a second year, so I haven't actually paid for it yet.  If I do ever have to pay for it, it's worth it because I fly Delta at least 4 times a year. The $50 roundtrip bag fee for two flights covers the cost of the card. I only used that card on Delta flights, but now that I have the Amex Platinum and get 5x points for flights I book Delta flights on Amex, since Delta is a MR transfer partner, but I still need the Gold Card because the Platinum doesn't come with bag benefits (which also covers travel companion bags).

Another example is opening a card to take advantage of a 0% balance transfer offer, which tends to happen at the outset of opening the card.  In this situation, I can earn rewards for a large purchase without having to worry about paying interest for a large purchase that I need to pay over time. 

Everyone has a different reason and sometimes you need multiply cards because each card has a benefit that the other doesn't.

It's like picking a cable package. If you want ALL of the good channels, you essentially have to get all of the packages because while there is some overlap, there are some channels that are important to you that only appear in one package.   

[Anonymous]

Except for those into heavy bonus chasing and/or MS (where cards are really commodities) I think there is a fairly small upper limit where most people would fail to pass a "red-face test" when saying "I need all these cards".  

From rewards coverage viewpoint, there is law of diminishing returns, (Yes, this card gives you 3% rather than 2% on something you spend $5 on every other year or so, so not getting it is throwing away free money!)  Utilization can be controlled by paying early when absolutely needed. Issuer diversity can be handled with a very small number of cards.

So I think it really is that most people get some enjoyment out of the activity.   There are worse things to "collect" but many of the justifications really don't hold up very well!

[UpperNwGuy]

I currrently have 7 cards, and I think that is too many.  Unfortunately, the two cards I carry in my wallet are my two newest (2016 and 2017), and the cards I keep in the sock drawer are my oldest cards.  Hopefully I will figure out a way to reduce my card total from 7 to 5 sometime soon, with 4 as my ultimate goal.  In my opinion, nobody "needs" to have LOTS of cards, no matter what their stated reasons.

[Anonymous]

Gimme those high scores YUP!

[Viva-LV]

All kinds of reasons, many have been listed on and on.  Higher limits offer more options: travel, purchase power, perks/rewards and the like.  If you use them for business, higher limits (to me) are a must.  I use rewards cards for business all day long, and reap the benefits/points for my personal use.  Can't remember the last time I actually paid for a hotel room on travels or vacation.  A friend of mine racked up over a million MR points on his gold Am Ex.  Yes, there is an art (if you will) to achieving higher credit limits, and it can be challenging/fascinating/addicting.  The same can be said about collecting art/autos/guns or whatever your fancy is.  Its part of getting what you want, and where you want to be.  Carry on, and good luck!