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Is there a such thing as too many cards?

missd1985
New Contributor

Is there a such thing as too many cards?

I have quite a few credit cards and charge cards. Only 4 have a balance currently. If I was looking to close some accounts. Which should I close? My oldest account I will never close but do I want to be closing newly opened accounts vs older accounts?
Working on paying off debts, and getting a house by 2022. In the garden until then.
31 REPLIES 31
Standby
Frequent Contributor

Re: Is there a such thing as too many cards?

List your accounts if you would like specific recommendations. Balances and limits would help too.

Some general reasons to close cards...
Sub prime lenders, cards with annual fees you don't profit from, or ones you never use.






Message 2 of 32
ImTheDevil
Community Leader
Super Contributor

Re: Is there a such thing as too many cards?

^^^ agreed. Keep cards that work for your lifestyle, and close those that do not. Age factors will largely be unaffected since most closed accounts will remain on your reports for up to ten years after closure.

Listing what you have along with the limit and balance on each card and how you typically spend will help us help you decide what should stay and what should go.


Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | FNBO Prime Visa | PenFed PCR | Navy cashRewards | Navy Platinum | Apple | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





Message 3 of 32
BrutalBodyShots
Super Contributor

Re: Is there a such thing as too many cards?

Having "too many" cards can also be defined as someone that has hit a constraint (usually overall exposure) to opening additional cards.  If one is denied for too much available credit and they go ahead and close down a bunch of cards that they don't see value in, if they reapply for the product that they really want often they'll see a different result.

 

So yes, one example of having "too many cards" would be if the amount you have prevents you from acquiring an additional credit product, presumably one that you need more than some of the others you already have.

Message 4 of 32
Birdman7
Super Contributor

Re: Is there a such thing as too many cards?

There is also a negative reason code for too many or too few revolving accounts on some algorithms. I believe I saw it at around 15.
-Scoring wisdom: General Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
CassieCard’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 5 of 32
BrutalBodyShots
Super Contributor

Re: Is there a such thing as too many cards?

That is true above.  I believe that number may fall somewhere in the range of 15-20 accounts.  Perhaps the optimum "range" may be something like (say) 10-16 accounts, where a number below that range or a number greater than that range would result in a negative reason code and a slight score ding.  I personally don't believe that the ding would be significant... perhaps something like 5 points in most cases just shooting from the hip.

Message 6 of 32
Birdman7
Super Contributor

Re: Is there a such thing as too many cards?

Yeah it was definitely one of the lower negative reason codes. I could go back and look sometime, but I doubt it’s any more than that, I would agree.
-Scoring wisdom: General Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
CassieCard’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 7 of 32
missd1985
New Contributor

Re: Is there a such thing as too many cards?

I have quite a few accounts, I am looking to close some because there are some I have never even used before. 

 

Currently I have 20 accounts incl charge cards. A good amount of them I do not use. The only one I really would like to cancel is Cap 1 Charge for Saks and my Capital one QS. Both hold no balance and are low credit limits. 

 

 

 

Working on paying off debts, and getting a house by 2022. In the garden until then.
Message 8 of 32
missd1985
New Contributor

Re: Is there a such thing as too many cards?


@ImTheDevil wrote:
^^^ agreed. Keep cards that work for your lifestyle, and close those that do not. Age factors will largely be unaffected since most closed accounts will remain on your reports for up to ten years after closure.

Listing what you have along with the limit and balance on each card and how you typically spend will help us help you decide what should stay and what should go.

Amazon Prime - CL - $4K $0 Balance 

Amex ED Preferred - CL - $19k $0 Balance  

Amex Blue Cash Preferred CL - $10k $0 Balance 

Amex Delta Skymiles - CL $1k $0 - do not use 

Amex Gold - $0 Balance - do not use 

BOA - CL - $20k $5200 Balance 

Barclay Apple Rewards - CL $3K $0 balance 

Capital 1 QS - $5K $0 Balance - use this card for trips but changing it to another card soon 

Capital 1 Saks - $750 $0 Balance  Not used in over a year 

Chase Freedom Unlimited - CL $2,700 - $0 Balance 

Chase Sapphire Preferred - CL $18,700 -$0 Balance 

Citi Double Cash - CL - $11, 600 - $5600 Balance 

Discover - CL - $8300 - $3400 Balance 

HSBC Gold - CL - $3K - $0 Balance - do not use 

Paypal MC - CL - $4300 - $0 Balance 

Paypal Credit - CL $4K - $0 Balance 

Samsung - CL $3200 - $0 Balance 

Torrid - CL - $1250 - $0 Balance 

Ulta - CL - $1K - $0 Balance 

Us Bank - CL - $10,500 $0 Balance 

Wells Fargo - CL - $5K - $2970 Balance 

 

That is what I have and the ones with balances were transferred from a few other cards I was paying 8-11 credit cards about 3 months ago and needed to be making less payments so I could put more on each one.

 

The only exception is BOA since that one also has a phone on there I had to buy as an emergency but that will be paid off next month. 

 

Working on paying off debts, and getting a house by 2022. In the garden until then.
Message 9 of 32
Birdman7
Super Contributor

Re: Is there a such thing as too many cards?

*** written prior to reading the preceding post. (Response to post 8.)***

Well retail cards adversely affect insurance scores and so do low credit limits. So there’s a good argument for closing both of those cards depending on your financial needs, and if you haven’t used them, they obviously don’t fit your needs.

One thing to consider is aging metrics of course.
-Scoring wisdom: General Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
CassieCard’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 10 of 32
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