How many credit cards should Adam keep open?

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Irenaeus
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How many credit cards should Adam keep open?

Post by Irenaeus »

Hello,

(I searched for similar questions in the archives but did not find anything, though I suspect such have been posed repeatedly. Please forgive me if I missed something obvious.)

Adam expects that, sometime in October 2011, he shall have paid all balances on all three of his credit cards after years of carrying a balance on two of them. While Adam realizes that having several credit lines can be beneficial, he is also concerned about credit card fraud (please understand I don't want to give too much of Adam's personal and other information here - I just deleted a sentence naming the card issuers), and believes that the likelihood of fraud increases with an increasing number of credit cards. I would appreciate your GENERAL recommendations about how many credit cards Adam should keep open.

Thank you.
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randomwalk
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Post by randomwalk »

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retiredjg
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Post by retiredjg »

I think most fraud from cards already open is on cards that are actually in use. An example would be card information that is "skimmed" while you are making legitimate purchases.

Put 1 card in your wallet/purse and keep the others in a safe place at home. Put a freeze on your credit information to prevent someone from opening an account you don't know about.

If you close the cards, you reduce your available credit and this could have a negative affect on your credit score.
WorkToLive
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Post by WorkToLive »

You can also put a lock on your credit which means that no one (not even you) can apply for credit. We are thinking about doing this since we have two credit cards, a mortgage at 3.25% interest, and have no plans for any future debt.
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CABob
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Post by CABob »

Although we hear a lot about credit card fraud the chances of a problem with a specific individual with a specific card is quite small. Most of the problems come as a direct or indirect result of use of the cards. Therefore, I think there is very little risk with keeping all of the cards even if they are not used. It would probably be best if each card were used every 6-10 months so it is not cancelled due to non-use.
Others have suggested that a lock be put on your credit, which may or may not help, but, I don't think non-use is a reason to add the lock.
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grabiner
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Post by grabiner »

WorkToLive wrote:You can also put a lock on your credit which means that no one (not even you) can apply for credit.
This may be a good idea, but it doesn't protect against problems with your existing cards; it makes it much harder for someone else to open credit in your name.
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WorkToLive
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Post by WorkToLive »

grabiner wrote:
WorkToLive wrote:You can also put a lock on your credit which means that no one (not even you) can apply for credit.
This may be a good idea, but it doesn't protect against problems with your existing cards; it makes it much harder for someone else to open credit in your name.
Good point. I would say to keep one or two open at most.
tripleb
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Post by tripleb »

Who's Adam?
Topic Author
Irenaeus
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Who's Adam?

Post by Irenaeus »

tripleb wrote:Who's Adam?
tripleb,

Who's Adam? The credit card owner's name was changed to protect the credit card owner. My first choice was to identify the owner as Jack, but then I figured you might think I was trying to claim that Jack Bogle and I were best buds. Not a good thing to do in a first post, or anytime if not true. So I chose Adam. I find it kind of earthy. And this whole credit card saga started out in a state of paradise, suffered a fall, and finally is being restored, so Adam seems fitting.

Peace in and out,
Irenaeus
SVT
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Re: Who's Adam?

Post by SVT »

Irenaeus wrote:
tripleb wrote:Who's Adam?
tripleb,

Who's Adam? The credit card owner's name was changed to protect the credit card owner. My first choice was to identify the owner as Jack, but then I figured you might think I was trying to claim that Jack Bogle and I were best buds. Not a good thing to do in a first post, or anytime if not true. So I chose Adam. I find it kind of earthy. And this whole credit card saga started out in a state of paradise, suffered a fall, and finally is being restored, so Adam seems fitting.

Peace in and out,
Irenaeus
Are you sure you're not posting in the 3rd person? :lol:
MidnightX
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Post by MidnightX »

I had heard Dave Ramsey promote Zander Insurance for identity theft protection. I checked it out and for me it cost only $72.00 a year, so I enrolled. Although I am still very cautious, I like living in my new little world *thinking* that if I am a victim of identity theft or fraud, I will have some protection and/or assistance in getting it resolved.
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