How many credit cards is too many?

[enayes]

I currently have 4 credit cards:

Bank of America Cash Rewards
Chase Freedom
Capital One Quicksilver
Barclay Arrival (travel rewards)

I am 24 years old and got my first credit card in 2013. The only reason I have so many cards was to take advantage of signup bonuses. For example I got $200 cash back for my Chase Freedom card.

I have never missed a payment and have never paid any interest on any of my cards. For the most part I just pay them off as I go. I have heard conflicting stories regarding the number of credit cards one should own.

My father tells me that a car dealership may see that I have 4 cards all with a $5000 limit and turn me down for a loan because they see that as me being in 20,000 worth of debt.

I've also read that having multiple accounts in good standing does nothing but help your credit score and that's it's a good idea to keep your accounts open, as opposed to canceling a credit card when you get a new one.

What's the deal ISHers?

[Riley Martin]

2.

[hateraid]

1 is good enough for me

[32jazz]

I've heard some experts say that so many cards does have an effect on your debt -to -income ratio & some may figure in $20 k debt. Also depends on what percentage of the total $20 k you are utilizing (numbers approaching 50% is too much).


Depends on what your income is & if you have a low income your debt-to-income ratio may hurt you. Honestly though Fico scores /considerations are even hard for experts to figure out. They recently eased up on collections & forgive them if you pay them off instead of it remaining 7 years dragging down score & they are easing up on medical bills(as of August 2014-google "FICO score changes")



At your age I would doubt whether 4 is good. I only keep 2 Master/Visa . Rarely use one( maybe a $30ish dollar balance on 1 now) & the other for the hypothetical back up.


I think 2 is good.

[arkain]

If you pay them off on time and don't carry a large balance then it doesn't matter. In that case you're better off having that many credit cards because you show that you have in total like 20k credit line and you've never even used 20% of it on a continuous basis.

You keep 1, then even 1 large purchase and you're reaching 50% of your entire credit limit, which is bad even if you pay it off right away.

I keep 4 as well, 1 each of mastercard, visa, amex, discover, while really I only use my visa 90% of the time cause I get the best rewards there.

[SunsN07BookIt]

The main problem isn't keeping them, assuming you have a balance that still gives you a low debt-to-income ratio. The main problem is canceling them if you don't want them anymore. Cancelling a credit card hurts your credit, a little to none if you have excellent credit, more so if you have bad credit.

I still have my Chase Sapphire Preferred card from over 10 years ago, back when it was just Shell MasterCard.

[enayes]

The main problem isn't keeping them, assuming you have a balance that still gives you a low debt-to-income ratio. The main problem is canceling them if you don't want them anymore. Cancelling a credit card hurts your credit, a little to none if you have excellent credit, more so if you have bad credit.

I still have my Chase Sapphire Preferred card from over 10 years ago, back when it was just Shell MasterCard.

so, you think it's a good idea to hang onto credit cards even if you aren't using a particular one anymore?

[DwnShft2Xcelr8]

I have one and even that feels like too much. Credit cards give you the false sense of available finances when you can't even pay off the debt they accrue. Then they add up interest to keep you in debt. No thanks. Never doing that again.

[enayes]

I have one and even that feels like too much. Credit cards give you the false sense of available finances when you can't even pay off the debt they accrue. Then they add up interest to keep you in debt. No thanks. Never doing that again.

No offense but it sounds like you just weren't ready for a credit card.

If you use your credit card as if it was your debit card you can save a lot of money and earn rewards. I've never paid any interest on a card and I highly doubt I ever will.

[johndeeregreen]

I have one and even that feels like too much. Credit cards give you the false sense of available finances when you can't even pay off the debt they accrue. Then they add up interest to keep you in debt. No thanks. Never doing that again.
This type of attitude regarding credit cards always makes me chuckle; guys acting as if they are powerless over the card. As if having a piece of plastic makes it impossible to any longer live "merely" within one's means. Now, of course, credit card companies capitalize on this to line their pockets from the overwhelming amount of shmucks who can't restrain themselves from buying shit they can't afford.

[BigBoss]

Your dad's an idiot. Nobody cares how many credit cards you have as long as your credit score is good.

It doesn't mean as long as you're responsible, but look at it this way if you HAVE more credit cards at your disposal IF an emergency happens, you'll tend to spend more and put yourself in more debt had you have had say 2 cards.

Anyway, sounds like you're asking a question you already know the answer to.

[SunsN07BookIt]

so, you think it's a good idea to hang onto credit cards even if you aren't using a particular one anymore?

To tell you the truth, I don't know what the best answer for you is. Like I said, if you have excellent credit, things like loan apps, credit inquiries, credit card cancellations have little effect on your credit. I certainly wouldn't cancel more than one in a short period of time(like 2 or 3 in 6 months) though.

[DCL]

my fico's over 800 and i only have 2 credit cards.

[DwnShft2Xcelr8]

No offense but it sounds like you just weren't ready for a credit card.

If you use your credit card as if it was your debit card you can save a lot of money and earn rewards. I've never paid any interest on a card and I highly doubt I ever will.

Yup. I was 18 when I got my first credit card.
"I'm hungry.. Hmm.. I don't have cash... But I have a credit card!
My boys are talking about taking a road trip. Well, I don't have money to spend on that gas, but fukk it. I've got a credit card!
College textbooks too much & Financial Aid hasn't kicked in yet? Credit card time!"
That was me back then. I learned from those stupid mistakes. Now I only pay cash or use debit. I just wasn't taught how to use the card properly. It wasn't until I maxed out my card that my dad stepped in and said, "Da fuq, son?"

[KevinNYC]

Your dad's an idiot. Nobody cares how many credit cards you have as long as your credit score is good.


Not true.

The number 1 mistake listed on creditcards.com is having too many. (http://www.creditcards.com/credit-card-news/help/worst-credit-card-mistakes-6000.php)

In addition to the temptation to run up debt on each card, they cite this

Having too many cards can also negatively impact both your credit score and your ability to borrow money, she says. On one hand, adding more cards helps your score by lowering your credit utilization ratio -- the amount of debt you carry compared to your available lines of credit. On the other hand, "If you have a lot of credit cards with high credit limits and you go for a mortgage, the lender will take into consideration, 'What if you ran those credit cards up? What would your debt-to-income ratio be?' "

[enayes]

It feels great to get the $100-$200 bonuses that credit card companies are offering.

So I guess I need to decide whether to keep the 4 that I have and keep them in good standing or cancel 1-2 of them. Not sure which is the better option.

[Godzuki]

my fico's over 800 and i only have 2 credit cards.


its probably because you've paid off a car/house....you can also have a high credit rating but not enough purchases to secure higher loans.

most people should get at least 2-3 credit cards at the youngest age they can to build up their credit rating. it'll help you when you get older and want to buy much bigger shit. in fact most financial people who give loans will offer up that advice.

that is assuming you're responsible and not a idiot like most people are with credit cards. i agree they can sneak up on you where your balance ends up a lot higher than you realize but its about being responsible. if you're not then just get one with a low max.

the credit card game is the promo's are always for new credit card people so they give you incentive to jump to other cards or transfer your balances to them. some give amazing deals, and you can actually make out really well doing that, but they also generally are based on spendign a certain amount within a certain time too. Frequent flyer mile cards are real popular with that, but a ton also give cash back type of stuff...thing is the interest rates are still about 18%~ with those so it will hurt u if u don't have a low balance or pay them offf after purchases.

[Jailblazers7]

Two cards. One for every day use and one for business expenses.

[DCL]

its probably because you've paid off a car/house....you can also have a high credit rating but not enough purchases to secure higher loans.

most people should get at least 2-3 credit cards at the youngest age they can to build up their credit rating. it'll help you when you get older and want to buy much bigger shit. in fact most financial people who give loans will offer up that advice.

that is assuming you're responsible and not a idiot like most people are with credit cards. i agree they can sneak up on you where your balance ends up a lot higher than you realize but its about being responsible. if you're not then just get one with a low max.

the credit card game is the promo's are always for new credit card people so they give you incentive to jump to other cards or transfer your balances to them. some give amazing deals, and you can actually make out really well doing that, but they also generally are based on spendign a certain amount within a certain time too. Frequent flyer mile cards are real popular with that, but a ton also give cash back type of stuff...thing is the interest rates are still about 18%~ with those so it will hurt u if u don't have a low balance or pay them offf after purchases.

i wish that was true. the mortgages ain't disappearing anytime soon.

but i think i know a thing or two in how to boost credit scores a little.

well, first tip is quite obvious -- make all your payments on time. don't ever be late. try to own a clean record or the blemish will stay on your report for 7 years or something like that. actually, in reality, you can probably be late up to 60 or 90 days before they report you to the credit bureaus, but don't risk it. just have every card you have on autopay so you won't ever miss anything by accident.

if you do this over time, i think you should get 700-750 by default.

but if you want to go over some more, here are some other tips that i think have helped me.

keep a very low balance-to-credit ratio. don't pay everything off though. if you pay everything off every month, it's almost like having no credit history because they calculate that as zero. i keep mine at around 5-10% of the total credit line.

another tip is time, which is not really something anyone can take care of; you can only get there by letting time pass. but i don't think too many people know this -- the longer you have the same credit card, the better your score will be. so don't change your credit cards every couple years. i own 2 cards, and these are the same cards that i've owned since like forever. if i cancel these two cards and get 2 brand new cards, my score will go down noticeably even though i didn't miss any payments. i think it's a dumb algorithm, but that's how they calculate the little things. your score also goes down every time a credit company pulls down your report.

but anyway, there isn't really any big advantage in having a score higher than 750 since all the best terms and rates are already offered at that mark. getting a higher score only serves as a buffer, but you won't be awarded a lower interest or better terms or whatever. and credit score is not the only thing that loan officers look at, so whether your score is high, average, or low, it doesn't always reveal everything. they probably care more about income, liquid assets, and liabilities.

[Godzuki]

i wish that was true. the mortgages ain't disappearing anytime soon.

but i think i know a thing or two in how to boost credit scores a little.

well, first tip is quite obvious -- make all your payments on time. don't ever be late. try to own a clean record or the blemish will stay on your report for 7 years or something like that. actually, in reality, you can probably be late up to 60 or 90 days before they report you to the credit bureaus, but don't risk it. just have every card you have on autopay so you won't ever miss anything by accident.

if you do this, i think you should get 700-750 by default.

but if you want to go over some more, here are some other tips that i think have helped me.

keep a very low balance-to-credit ratio. don't pay everything off though. if you pay everything off every month, it's almost like having no credit history because they calculate that as zero. i keep mine at around 5-10% of the total credit line.

another tip is time, which is not really something anyone can take care of; you can only get there by letting time pass. but i don't think too many people know this -- the longer you have the same credit card, the better your score will be. so don't change your credit cards every couple years. i own 2 cards, and these are the same cards that i've owned since like forever. if i cancel these two cards and get 2 brand new cards, my score will go down noticeably even though i didn't miss any payments. i think it's a dumb algorithm, but that's how they calculate the little things. your score also goes down every time a credit company pulls down your report.

but anyway, there isn't really any big advantage in having a score higher than 750 since all the best terms and rates are already offered at that mark. getting a higher score only serves as a buffer, but you won't be awarded a lower interest or better terms or whatever. and credit score is not the only thing that loan officers look at, so whether your score is high, average, or low, it doesn't always reveal everything. they probably care more about income, liquid assets, and liabilities.


yeah i think its usually missing 2 payments where they will report it to your credit. but i'd assume if there is a consistency in late payments then it would also affect it.

the other tip i have is if you're on time a lot and been with them for awhile you can sometimes call in and negotiate a lower interest rate, and if u ever hate a late fee they'll waive it so long as you don't have a history of it. theres a lot u can get away with if you're a responsible card holder for a CC company.

i didn't know that about your credit score going down if u change cards. thats rather ridiculous considering the industry gives you incentive to change cards.

and you're right about the loan stuff, how much u have to secure the loan is bigger than credit rating i'm sure. its just for young people when they grow into adulthood they generally don't have that much but those are the lines i was thinking along side...

[DCL]

yeah i think its usually missing 2 payments where they will report it to your credit. but i'd assume if there is a consistency in late payments then it would also affect it.

the other tip i have is if you're on time a lot and been with them for awhile you can sometimes call in and negotiate a lower interest rate, and if u ever hate a late fee they'll waive it so long as you don't have a history of it. theres a lot u can get away with if you're a responsible card holder for a CC company.

i didn't know that about your credit score going down if u change cards. thats rather ridiculous considering the industry gives you incentive to change cards.

and you're right about the loan stuff, how much u have to secure the loan is bigger than credit rating i'm sure. its just for young people when they grow into adulthood they generally don't have that much but those are the lines i was thinking along side...

yup, if i walk into a bank and request a loan for a yacht, they will tell me to piss off because i simply can't afford it.

but if derrick rose's credit score is only 500 and requests the same yacht loan, he'll get it in about a minute. :oldlol:

[thefatmiral]

I want the quicksilver card. the freedom wouldn't let me do a transfer of balance. 4 doesnt seem like too many.

[enayes]

i wish that was true. the mortgages ain't disappearing anytime soon.

but i think i know a thing or two in how to boost credit scores a little.

well, first tip is quite obvious -- make all your payments on time. don't ever be late. try to own a clean record or the blemish will stay on your report for 7 years or something like that. actually, in reality, you can probably be late up to 60 or 90 days before they report you to the credit bureaus, but don't risk it. just have every card you have on autopay so you won't ever miss anything by accident.

if you do this over time, i think you should get 700-750 by default.

but if you want to go over some more, here are some other tips that i think have helped me.

keep a very low balance-to-credit ratio. don't pay everything off though. if you pay everything off every month, it's almost like having no credit history because they calculate that as zero. i keep mine at around 5-10% of the total credit line.

another tip is time, which is not really something anyone can take care of; you can only get there by letting time pass. but i don't think too many people know this -- the longer you have the same credit card, the better your score will be. so don't change your credit cards every couple years. i own 2 cards, and these are the same cards that i've owned since like forever. if i cancel these two cards and get 2 brand new cards, my score will go down noticeably even though i didn't miss any payments. i think it's a dumb algorithm, but that's how they calculate the little things. your score also goes down every time a credit company pulls down your report.

but anyway, there isn't really any big advantage in having a score higher than 750 since all the best terms and rates are already offered at that mark. getting a higher score only serves as a buffer, but you won't be awarded a lower interest or better terms or whatever. and credit score is not the only thing that loan officers look at, so whether your score is high, average, or low, it doesn't always reveal everything. they probably care more about income, liquid assets, and liabilities.

are you saying you allow the company to then charge you interest on this amount?

or are you just paying off your current cycle and keeping some on the card that can roll over without penalty?

[outbreak]

I have 3 but I don't really buy things "on credit", I pay mine off at the end of each month and have more money in my savings account than what my cards add up to even if I did max them (which I never do anything). The only reason I use mine much is because I get points with 2 of them that I can redeem for vouchers, the other one is a small one that I use for online purchases.

[sixerfan82]

1 is plenty.

How much shit do you really need that you need an available $10k at all times?

[enayes]

1 is plenty.

How much shit do you really need that you need an available $10k at all times?

I didn't get 4 cards so I have 15K to spend. I got 4 cards because I got a free $100-200 for signing up on each card.

[Stempel, HERB]

I currently have 4 credit cards:

Bank of America Cash Rewards
Chase Freedom
Capital One Quicksilver
Barclay Arrival (travel rewards)

I am 24 years old and got my first credit card in 2013. The only reason I have so many cards was to take advantage of signup bonuses. For example I got $200 cash back for my Chase Freedom card.

I have never missed a payment and have never paid any interest on any of my cards. For the most part I just pay them off as I go. I have heard conflicting stories regarding the number of credit cards one should own.

My father tells me that a car dealership may see that I have 4 cards all with a $5000 limit and turn me down for a loan because they see that as me being in 20,000 worth of debt.

I've also read that having multiple accounts in good standing does nothing but help your credit score and that's it's a good idea to keep your accounts open, as opposed to canceling a credit card when you get a new one.

What's the deal ISHers?

you are 24 years old. 24! Yet you still think $100 or even $200 is a life changing amount of money. You're a loser and don't even know it.

[enayes]

you are 24 years old. 24! Yet you still think $100 or even $200 is a life changing amount of money. You're a loser and don't even know it.

:biggums:

when did I say life changing?

just worth filling out the application for me and then I have options on which card to use on what products thereby increasing my cash back

its called ballin'

[bigkingsfan]

I currently have :
Bank of America Visa Signature
Amex Blue Cash
Discover IT
Sony Visa
Amazon Visa
Southwest Visa
Sam's Club Mastercard
Target CC

My Credit Score is 780

[enayes]

Just got my American Express Blue Cash card in the mail, which makes 5 cards for me.

This is another one that has a $100 signup bonus offer.

Free $$$ is good.

:pimp:

[sixerfan82]

I think my credit scores are in the 750+ range. Recently bought a house and my credit card will be paid off in the next month or so.

I think having 2 is too many. The purpose(as I see it) is to use it when you plan to spend a lot of money and you dont want to carry around several hundred in cash or you have to use it because it's much easier.

For example, xmas shopping, dinner out in the city or you're in a real bind.

[JohnFreeman]

You shouldn't have any until you can pay it off

[NBAplayoffs2001]

more than 3 cards are excessive for an adult whose working. For a college student? More than 2 cards and I make the assumption you spend a lot more money than you should be.

[GimmeThat]

from what I remember of what I was told when I got my first credit card.

it doesn't really matter how many cards you have, but really which one you use the most recently.

i.e. having a card from 2013 then you got another card with a higher credit limit therefore you stopped using it. it doesn't matter.

however, if you cancel the service, it might actually hurt your credit score.



remember, credit card company wants to make money off of you too.

however you want to look at it as a cheap way to boost your credit score.


this is not that of a verified or reliable source by the way.

[enayes]

I think my credit scores are in the 750+ range. Recently bought a house and my credit card will be paid off in the next month or so.

I think having 2 is too many. The purpose(as I see it) is to use it when you plan to spend a lot of money and you dont want to carry around several hundred in cash or you have to use it because it's much easier.

For example, xmas shopping, dinner out in the city or you're in a real bind.

:biggums:

This makes no sense at all. I earn MONEY on every single purchase I make, I will swipe my credit card if I am buying a $1.39 bag of chips.

For example with the Captital One Quicksilver card you earn 1.5% cash back on EVERYTHING YOU BUY. So I NEVER pay full price for anything, I'm always paying 98.5% of the final price. Why would anyone not do this?

[sixerfan82]

:biggums:

This makes no sense at all. I earn MONEY on every single purchase I make, I will swipe my credit card if I am buying a $1.39 bag of chips.

For example with the Captital One Quicksilver card you earn 1.5% cash back on EVERYTHING YOU BUY. So I NEVER pay full price for anything, I'm always paying 98.5% of the final price. Why would anyone not do this?

I'm not sure why I dont do it, I just dont. Credit companies BANK on the idea that people will either spend too much or forget things.

As I clearly said in my post 'the purpose(as I see it), etc. It was formed as an opinion although maybe not clearly stated that way. The less I put on my credit card, the less chance I'll overspend or forget how often I use it.

I am not interested in cash back. I do not believe the idea that companies will simply 'give' you money, or lower the price of something without a catch.

As I said, it's just an opinion.

[enayes]

I'm not sure why I dont do it, I just dont. Credit companies BANK on the idea that people will either spend too much or forget things.

As I clearly said in my post 'the purpose(as I see it), etc. It was formed as an opinion although maybe not clearly stated that way. The less I put on my credit card, the less chance I'll overspend or forget how often I use it.

I am not interested in cash back. I do not believe the idea that companies will simply 'give' you money, or lower the price of something without a catch.

As I said, it's just an opinion.

You don't need to believe it for it to be true. It's a fact. It's awesome to see your cash back build up and then you can just apply it to your balance whenever you want.

So far, credit card companies have not made a dime off of me while I've made over $700 in bonuses and cash back rewards. Most people are not as careful and calculated as myself and I guess have those individuals to thank for allowing credit card companies to offer these deals.

[sixerfan82]

You don't need to believe it for it to be true. It's a fact. It's awesome to see your cash back build up and then you can just apply it to your balance whenever you want.

So far, credit card companies have not made a dime off of me while I've made over $700 in bonuses and cash back rewards. Most people are not as careful and calculated as myself and I guess have those individuals to thank for allowing credit card companies to offer these deals.

You might be right. Being able to use a credit card and pay it off every month without fail is probably part of building up your 'cash back'. The very second you pick up an interest charge is when the cash back might be negated.

Once my credit card is paid off in full, I might see it in a different way.

[enayes]

You might be right. Being able to use a credit card and pay it off every month without fail is probably part of building up your 'cash back'. The very second you pick up an interest charge is when the cash back might be negated.

Once my credit card is paid off in full, I might see it in a different way.

Yeah once you have to pay any interest on a credit card the cash back rewards lose their value. You would still earn the rewards but chances are the interest you are paying would be higher than the rewards.

Once you pay interest/carry a balance the credit card company has officially "won" and made money off of you. But if you can prevent this from ever happening (as in don't buy things you can't afford) there is money to be saved by using credit cards for all of your purchases.

[sixerfan82]

Yeah once you have to pay any interest on a credit card the cash back rewards lose their value. You would still earn the rewards but chances are the interest you are paying would be higher than the rewards.

Once you pay interest/carry a balance the credit card company has officially "won" and made money off of you. But if you can prevent this from ever happening (as in don't buy things you can't afford) there is money to be saved by using credit cards for all of your purchases.

This is where I and probably most people don't do so well. When I first started using a credit card(I was 18?), I paid it off without fail. What was I really going to buy that I couldn't pay off? A few comic books? Some movie tickets? A TV?

Nowadays, it's dinner in the city, birthday gifts for friends/parents/girlfriend. ballgame tickets, vacations. Not as easy to pay off.

The credit card will be paid off soon in October. Then the money I'd normally use to pay off that will be shifted towards student loans.

[PHX_Phan]

I don't have any. Opened up a discount tire card once and bought a set of tires on credit, paid that off within the zero interest period. Also financed a car and paid that off a year later.

I've been denied applying for most loans, which I'm not sure why. My credit history is limited but I have never had a late payment or an outstanding loan. When I bought my current car I had the cash but I wanted to build on my credit, so I tried getting a loan through my credit union. Denied. Thought the concept that I could be denied for credit was dumb if I could just turn around and ask to withdraw the cash from my account with them. So much for building credit.

[enayes]

I don't have any. Opened up a discount tire card once and bought a set of tires on credit, paid that off within the zero interest period. Also financed a car and paid that off a year later.

I've been denied applying for most loans, which I'm not sure why. My credit history is limited but I have never had a late payment or an outstanding loan. When I bought my current car I had the cash but I wanted to build on my credit, so I tried getting a loan through my credit union. Denied. Thought the concept that I could be denied for credit was dumb if I could just turn around and ask to withdraw the cash from my account with them. So much for building credit.

I was denied for 4-5 cards before I finally got approved. I sent in a handwritten note with my application, stating how I was going to use the card and why I wanted it (to build credit) and I was approved for that one. I think it was the personal touch that got me through.

After that first one, I had no trouble getting my next 4 and taking advantage of the awesome bonus offers floating around.

[nathanjizzle]

i have 7. 3 closed and in good standing 4 active. i dont really use them for anything but business. It feels good to have spending power. If i ever wanted to buy some equipment for my business to make more money i could do it.

[nightprowler10]

The debt-to-ratio income thing is real. I was under a huge microscope while buying a house because mine was too high (I co-signed on my parents' first house... big mistake). It took me 3 months to get the property where it should've taken 30 days. It was hell.

EDIT: I should add that closing 4 low balance credit cards significantly improved my ratio.

[Real14]

2.
end thread.

[enayes]

I have two active CCs. Apparently I have a Capital One card dating back to 2004 but I haven't used it for years.

I'm thinking of reviving that card because they're offering me 1.5% cash back on every purchase. Redeem at anytime. No expiration. No annual fee.

That's the Quicksilver card, which I have. It's a great all around cash back card, very simple to use.

[enayes]

I just got approved for the Discover IT card. They're offering a $150 signup bonus right now so I had to take advantage of that. I will now have 6 credit cards, but I only use 2 at a time. The others I keep active but have a $0 balance on them.

[KyrieTheFuture]

So much financial irresponsibility in this thread

[enayes]

So much financial irresponsibility in this thread

How so?

I've made over $800 in free money from bonus offers and have never paid a dime to a credit card company in interest or fees.

I ask again, how so?

[Godzuki]

A) check out Slickdeals eveery day~

B) Get Shop Discover card

C) Get Amex blue cash preferred card


-use Discover on all online orders 5%~ cashback, and 10% if its a ShopDiscover vendor (quarterly program) up to a limit

-use Amex on all groceries for 6% cashback, dept stores + gas stations 3% cashback. plus card looks pimp. spend $1000~ in first 3 months get $100 back.

best reward cards out right now

[It's A VC3!!!]

Having too many credit cards is not a good thing for your sanity and in regards to lenders as well. You have a higher risk level to a lender because too much available credit can be seen as a red flag. You don't need four credit cards. If you have one with a $10k limit that should be adequate enough. I wouldn't close them and instead, just let them expire. However, make sure you let the card issuer know to not reissue you a new care upon expiration.

[KyrieTheFuture]

How so?

I've made over $800 in free money from bonus offers and have never paid a dime to a credit card company in interest or fees.

I ask again, how so?
Honestly did not know FICO changed their model, it used to be that multiple cards led to a decrease in credit score but they apparently took it out of their valuation method, mah B.

[enayes]

Having too many credit cards is not a good thing for your sanity and in regards to lenders as well. You have a higher risk level to a lender because too much available credit can be seen as a red flag. You don't need four credit cards. If you have one with a $10k limit that should be adequate enough. I wouldn't close them and instead, just let them expire. However, make sure you let the card issuer know to not reissue you a new care upon expiration.

I know I don't NEED 4. But as I've stated earlier I keep opening new cards to get HUNDREDS OF DOLLARS for FREE.

My credit score is in the 700's right now with 6 cards. The only reason it's not above 800 is because my average credit history age is low. I've never missed a payment but most of my accounts are relatively new. As soon as all of my accounts are over 2 years old my score will shoot above 800.

[It's A VC3!!!]

I know I don't NEED 4. But as I've stated earlier I keep opening new cards to get HUNDREDS OF DOLLARS for FREE.

My credit score is in the 700's right now with 6 cards. The only reason it's not above 800 is because my average credit history age is low. I've never missed a payment but most of my accounts are relatively new. As soon as all of my accounts are over 2 years old my score will shoot above 800.

Your credit score doesn't mean shit if you have very little money in the bank or if you earn low income. Lenders don't just say "Oh, he has an 800 credit score, let's give him a $500k loan". A lot depends on your current assets plus income, the latter being very important. So many people do ridiculous things to improve their credit score. Six credit cards is absurd per my opinion. But good to hear that you're managing it just fine.

[enayes]

I have 6 but I'm never using all 6. And I didn't get all these cards to improve my score, my score has decreased a little as I got new cards because each new card was making my average account age younger and younger.

I got the cards for the free money, after I earn the $100-200 bonus I pay off the card in full and put it in my drawer.

[GimmeThat]

if your spending is all going to be the same.

I would suspect those who prefer to utilize six cards over just a few, are not into trophies as much.

[sixerfan82]

Kind of ironic that this thread was bumped not even 2 weeks after I paid off my credit card.

I look at this thread much differently now.

As long as you IMMEDIATELY pay off the card, you can benefit from the points you earn, but you HAVE to stay on top of it, it's mandatory.

Ironically, there's about $4,000 worth of things Id like to do/get to fix little problems in my life and now that the card is paid off I can do that, but I dont want to end up in that hole AGAIN.

So, my personal strategy is to get into a habit of using the card ONLY for emergencies for a few months and trying to buy things only when absolutely necessary.

[Charlie Sheen]

amex is better than collecting all this bonus and rewards shit imo. Store doesnt want to take a return. No probs. Got refunded by amex. Only card i need anymore.

[enayes]

Kind of ironic that this thread was bumped not even 2 weeks after I paid off my credit card.

I look at this thread much differently now.

As long as you IMMEDIATELY pay off the card, you can benefit from the points you earn, but you HAVE to stay on top of it, it's mandatory.

Ironically, there's about $4,000 worth of things Id like to do/get to fix little problems in my life and now that the card is paid off I can do that, but I dont want to end up in that hole AGAIN.

So, my personal strategy is to get into a habit of using the card ONLY for emergencies for a few months and trying to buy things only when absolutely necessary.

Just use your credit card as you would your debit card. Buy groceries, pay off your bills, buy gas etc. and you will rack up reward points/dollars.

[Riley Martin]

I got the cards for the free money
That's a very bad idea.

[Dragonyeuw]

I have 1, and have had that for 15 years, $2,000 limit. I could easily apply for more as I never carry a balance over a month or two and have a great history of payments, but I don't want the temptation that comes with more credit. I'm pretty adverse to debt period, I bought a house at 24 and hope to have it paid off in 8 years or less( will be 45 by then), then I'll be completely debt-free, and I plan to stay that way.

[enayes]

That's a very bad idea.

Not if you can control your spending. Free money is free money. The offers are there for people to take advantage of. I guess I'm lucky that most people just run up their credit cards and end up paying interest, if it wasn't for those people these $200 sign up bonuses probably wouldn't be offered.

[enayes]

#likeaboss :pimp:

http://i57.tinypic.com/j9ynw1.jpg

[russwest0]

I think 3 cards is a good amount.

one thats two percent cash back, one that rotates around on 5%, and another with some kind of rare reward that the other two dont have

[bagelred]

Just have my American Express Centurion card. I recommend it.

[sundizz]

Yeah, I have a bunch of cards - probably 10+ total lines of credit.

If you are organized and know how to use them it really doesn't matter how many you have.

I simply don't want to cancel them because it'll negatively affect my credit score. The amount of debt vs. the amount of your total limit is a pretty big part of your credit score (and I want low rates when I buy a house).

For example,

Person A
$500 balance out of $1,500 total available

Person B
$6,000 balance out of $45,000 available.

Even though the Person B has much more debt their ratio is significantly better and that equals a better credit score (all other factors held equal).

[enayes]

Yeah, I have a bunch of cards - probably 10+ total lines of credit.

If you are organized and know how to use them it really doesn't matter how many you have.

I simply don't want to cancel them because it'll negatively affect my credit score. The amount of debt vs. the amount of your total limit is a pretty big part of your credit score (and I want low rates when I buy a house).

For example,

Person A
$500 balance out of $1,500 total available

Person B
$6,000 balance out of $45,000 available.

Even though the Person B has much more debt their ratio is significantly better and that equals a better credit score (all other factors held equal).

This has proven to be a very difficult concept for many members of this forum.

[enayes]

Showing some love for the credit cards. I've been keeping my active # of cards at 10 or below. And I by active, I mean open. I never have more than 2-3 cards with a balance on them.

I'd like to point out that I have still NEVER PAID A DIME OF INTEREST on any of my cards.

I have been a little more risky though. I've found myself seeking out cards with 12-15 months of 0% APR so I can spend a few thousand without having to pay it off right away. It hasn't hurt me yet and I've been able to stay on top of them all.

#3300

:rockon:

[Velocirap31]

I got my first credit card last year and they started me off with a 30,000 limit, kind of ridiculous. I've never had more than 500 on it at a time so far. It's a 1.5% cashback card though which is cool. I made 60 bucks last year with it and no interest paid over the year.

Getting your first credit card at 26 is probably rare, but I never liked the idea of them. However, now the big banks rip you off on transactions and give 0 interest on balances so screw them and debit cards.

[Jailblazers7]

I have two. One for monthly expenses (cable, utilities, etc) & one for daily expenses (food, drinks, Uber). Pay each off monthly. The capital one card I have is awesome because it gets me 20% off all Uber transactions.

[enayes]

it's not difficult if you're invested in small petty hustling like you. seriously, is a $200 enrollment bonus on every 10 credit cards make that much of a difference in your life?

I got a Chase Amazon card, Discover and Chase Freedom...really enough to get rewards points on my daily "needs" purchases. $0 interest fee for the past 4 years. It's not hard difficult to do. 3-4 cards is enough....10-11 cards like you have, it reeks desperation. plus, you gotta keep an eye out on all 10 cards...just less convenient in my opinion.

you're better off learning some new skills for passive income than this.

It's more than just the money, but yes earning $100-$200 per card for spending money I was already going to spend is worth it. But you can earn more than just extra cash.

I stayed 2 nights at a Park Hyatt in NYC to start off my honeymoon for FREE. Rooms at the hotel go for $400-600 per night. I also have a ton of miles built up on my travel cards. I have the ability to book 2-roundtrip tickets from Boston to Ireland for around $100 each, these tickets usually go for around $1000 a piece. I've been trying to get my parents to use them so they could go but my mom has not gotten her passport yet.

It really doesn't take up much of my time, and I haven't gotten very many new cards since I made this thread last year. (mainly because I've already used the best offers)

[enayes]

^ yeah, i know the rewards you can accumulate for your daily-life purchases. cash back, free stays at hotels, all good. 3 or 4 cards seems enough to me. 10 seems a lot.

i supposed, if you open it all but stash them away once you got your bonus enrollment money then, it's ok.

it just seems like you're encouraging people to take advantage of credit card rewards. i dont think that's the right mindset for most people since a lot people are in CC debt.

That's what I do. I keep 2 cards in my wallet and my others are stored away at home with a $0 balance. I keep most open and I tend to close any that have a yearly fee coming up.

And I agree that encouraging people to get more cards isn't the best option. That's not what I'm trying to do. I want people to know what CAN BE DONE if you're able to stay in control of your spending.

I had a female coworker that was almost 40 that was convinced that it was IMPOSSIBLE to use a credit card on all our purchases and not pay any interest. She honestly thought that interest was inevitable. I tried to explain to her about 0% APR periods and the fact that if you pay off your statement balance each month you're fine. She couldn't comprehend.

So I guess that's the main reason I've enjoyed making threads on credit cards. I hope to enlighten the select few on here that may have shared the same view on credit cards as my coworker.

[NumberSix]

Two

[bigkingsfan]

Get at least :
A 2% cashback CC, for purchases that doesn't fall anywhere below.
Amex for Extended Warranty and car rental insurance etc.
Discover IT if you shop online, quarter bonuses and the cashback portal is worth it.
A Visa with no foreign transaction fee, more accepted worldwide for someone that travels.

[enayes]

I just tallied up my total of open/closed accounts.

I currently have 9 active cards and 8 closed ones. So I've been approved for 17 cards since 2013.

Once again, never paid any interest, only opened so many to gain lucrative rewards.

:D

[enayes]

Make that 10 active cards, so a total of 18 now. I just got approved for the AMEX blue cash preferred card. Gonna start getting 6% back on groceries :)

:pimp: :pimp: :pimp: :pimp: :pimp:

[BGriffin's Dad]

18 accounts? thats gonna look great on your credit report :lol

[shlver]

Parents have 8-10 with a total credit line of $400k. A couple with 0% apr with one with no transaction fees. If you can manage them while not giving the credit card companies a dime then they are obviously advantageous to have. There were a few rough spots where the parents needed to buy new equipment and utilized balance transfers to fund unexpected business expenses.

[nightprowler10]

My family had a shitload. Over the last months I took over the finances and got everything in my name and connected to the family accounts down to zero with the exception of any interest free stuff that I can pay off within months without getting charged any interest.

Honestly, I think we were up to almost 50k in CC debt. fmd.

[enayes]

18 accounts? thats gonna look great on your credit report :lol

The number of accounts you have has very little effect on your credit score/report. It's all about how they are managed, card utilization, on time payments, etc.

My credit score has only gone up since I started my credit card churning.

[The Real JW]

Never knew about churning (https://www.reddit.com/r/churning) until now.

How bad is it for your credit score when you close accounts? to avoid paying the annual fees.

[enayes]

UPDATE:

Wanted to let everyone know that I was able to stay fully in control of my credit card churning. Even got my wife involved so we were able to double up on the best signup bonus offers :pimp:

I've opened 30 cards since 2013 (not counting my wife's)
20 of those have been closed (only opened to get the initial signup bonus)

ZERO interest paid. Current credit score- 775

Bought our first home in 2017.

THOUSANDS of dollars earned. MULTIPLE FREE flights and hotel stays.

:rockon: :rockon:

[sammichoffate]

UPDATE:

Wanted to let everyone know that I was able to stay fully in control of my credit card churning. Even got my wife involved so we were able to double up on the best signup bonus offers :pimp:

I've opened 30 cards since 2013 (not counting my wife's)
20 of those have been closed (only opened to get the initial signup bonus)

ZERO interest paid. Current credit score- 775

Bought our first home in 2017.

THOUSANDS of dollars earned. MULTIPLE FREE flights and hotel stays.

:rockon: :rockon:Hell yeah. Any tips on how to get started? I've read that if you're trying to buy a home within 8-12 months to not do it because it'll dip your score every time you open a new card. I only have 3 cards atm for cashback(Discover, Amex, Chase) that i've had for 5 or 6 years.

[MaxFly]

UPDATE:

Wanted to let everyone know that I was able to stay fully in control of my credit card churning. Even got my wife involved so we were able to double up on the best signup bonus offers :pimp:

I've opened 30 cards since 2013 (not counting my wife's)
20 of those have been closed (only opened to get the initial signup bonus)

ZERO interest paid. Current credit score- 775

Bought our first home in 2017.

THOUSANDS of dollars earned. MULTIPLE FREE flights and hotel stays.

:rockon: :rockon:

Congrats. What's the average age of our credit history?

[enayes]

Congrats. What's the average age of our credit history?

2 years and 10 months, supposedly has a medium impact on score. Safe to say this is what is keeping my score below 800.

[enayes]

Hell yeah. Any tips on how to get started? I've read that if you're trying to buy a home within 8-12 months to not do it because it'll dip your score every time you open a new card. I only have 3 cards atm for cashback(Discover, Amex, Chase) that i've had for 5 or 6 years.

Just look for some good signup offers and get started. Last I checked the capital one Savor was still offering a $500 bonus. Of course you don

[MaxFly]

2 years and 10 months, supposedly has a medium impact on score. Safe to say this is what is keeping my score below 800.

Yeah, credit history length contributes to 15% of your FICO score. Churning is still more advantageous than the few points by which your score would be boosted with an older credit history, but make sure to not cancel your oldest accounts.

[sammichoffate]

[QUOTE=enayes]Just look for some good signup offers and get started. Last I checked the capital one Savor was still offering a $500 bonus. Of course you don

[enayes]

+1 for good advice, I'll look into it. Any advice on the timing like how often to sign up/close? I've read a year is a good time to close so you don't get hit w/ annual fees.

I closed cards when I was done with them. Sometimes it was right before an annual fee was coming, other times it was less than a month later. I canceled one card before it even got delivered in the mail 😂

How often to sign up is kind of a a guessing game. I had a hard time getting approved for my 1st card back in 2013. Once I had that one opened for 6 months it seemed like I could get any card I wanted.

Some companies do

[sammichoffate]

[QUOTE=enayes]I closed cards when I was done with them. Sometimes it was right before an annual fee was coming, other times it was less than a month later. I canceled one card before it even got delivered in the mail 😂

How often to sign up is kind of a a guessing game. I had a hard time getting approved for my 1st card back in 2013. Once I had that one opened for 6 months it seemed like I could get any card I wanted.

Some companies do