why so many?

[onthemove]

I see on this forms, that people have so many credit cards. I understand you want a high line of credit. There are people with 5-8 cards starting with less than 1k to 5K, 10k 12K and on and on. Why not stick with one bank like I did. I had three cards with this bank and now I just have one. I had all the cards merge into one credit line. I have an Amex Gold PRG, because the membership date is 1990. I am thinking about getting a Platinum and/or Starwood just to add to my credit line and/or AAoA.

Please share with me your reasoning.

thanks in advance,

onthemove

[enharu]

Rewards and perks. Different cards have different benefits, and certain cards have bonus rewards for different categories of spending.

[Walt_K]

Having only one payment network isn't good if that payment network isn't accepted.  Having only one bank isn't good if something goes wrong with that bank.  Better to diversify.  That explains some of it. 

No reason to close down old cards that you aren't using unless they have AFs.  That explains some of it.

Sign up bonuses.  That explains a lot of it.

[p-]

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onthemove wrote:....Why not stick with one bank ....?

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For many of us it was a matter of rebuilding, and limited options.  For example, at one time I only had an Orchard Bank card with a 300 dollar CL.  Later, as my credit improved, I looked for a good mix of features in multiple cards.  I added lower and middle tier cards, and then top tier cards as I became qualified.

One risk of sticking with a single bank is they can freeze all of your spending with a keystroke.  If there is suspected fraud, a problem with your accounts, or the dreaded Financial Review, you will find you no longer have access to your credit line.  Also, there are many places that just don't take Amex.  

[thom02099]

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@onthemove wrote:

I see on this forms, that people have so many credit cards. I understand you want a high line of credit. There are people with 5-8 cards starting with less than 1k to 5K, 10k 12K and on and on. Why not stick with one bank like I did. I had three cards with this bank and now I just have one. I had all the cards merge into one credit line. I have an Amex Gold PRG, because the membership date is 1990. I am thinking about getting a Platinum and/or Starwood just to add to my credit line and/or AAoA.

Please share with me your reasoning.

thanks in advance,

onthemove

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Different cards for different options.  BT cards in case one needs to do a transfer at zero interest rate.  Low interest rate no frills cards.  Cards with EMV chips/cards without them.  Variety of rewards cards  Travel rewards cards. Hotel rewards cards.  One from Discover, one from AMEX, one from MC, one from Visa.  Just some of the reasons folks carry more than 1-2 cards.  I'm sure there are other reasons. 

[Brax]

As the idiom goes, don't put all your eggs in one basket.

I had only two prime credit cards for a few years before suffering a collections setback unrelated to them. During the initial years, the banks didn't penalize me but ceased to reward me with any CLI because of this. After that began to get some age, I began to strategically pick up half a dozen credit cards over the last two years. Althrough my score never changed much, it helped me look better on paper by "diluting" the negative information with an overwhelming amount of positive information.

[laboi_22]

We just had a really in debt conversation almost exactly alike last month. Maybe this thread would help answer your question?

http://ficoforums.myfico.com/t5/Credit-Cards/Why-So-Many/m-p/2051027/highlight/true#M569376

[Stralem]

+1 for the diversity argument.

Having all of your trade lines resting in the hands of one bank is asking for trouble. Just ask all the former WaMu customers browsing this forum. The old saying about having all your eggs in one basket comes to mind.

Also, in my case, I want more than one payment network available to me.

I have Visa, MasterCard, and Discover (and eventually Amex). This is important because, I swear to [insert deity here], that there's a popular restaurant near work -- in downtown Chicago -- that doesn't accept anything BUT MasterCard. I know of another place that only takes Visa, and yet another than only takes Amex and MasterCard.

Again, this is in Chicago. Not exactly a backwater hicksville where everyone uses cash and paper checks.

The more diverse your credit portfolio, the less likely such situations will impede you.

[LS2982]

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@onthemove wrote:

I see on this forms, that people have so many credit cards. I understand you want a high line of credit. There are people with 5-8 cards starting with less than 1k to 5K, 10k 12K and on and on. Why not stick with one bank like I did. I had three cards with this bank and now I just have one. I had all the cards merge into one credit line. I have an Amex Gold PRG, because the membership date is 1990. I am thinking about getting a Platinum and/or Starwood just to add to my credit line and/or AAoA.

Please share with me your reasoning.

thanks in advance,

onthemove

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Why stick with only one bank?? What if they close your accounts???

With so many cards available out there you'd be missing out staying "loyal" with one bank!

[odd_dog]

Yup different cards for different options, loyalty programs (better seats on airplanes, higher status at hotels, etc..) other than that and the fact that I do not like my eggs all in one basket, just incase the issuer desides to add a fee, or something silly like that I have other choices available to me....and the fact that it is a challenge to get as many cards as I want.......LOL