Hw many credit cards to own?

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brak
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Hw many credit cards to own?

Post by brak »

I am trying to figure out how many credit cards to own. Currently I have an American Express card through Costco and a Capital One Quicksilver Visa. I just closed my US Bank Flex Perks Travel rewards card as I no longer travel, no longer want to pay the $95 annual fee, and the time to do so was opportune as I just discovered that the card was being used fraudulently. Are two cards enough? And is my credit score effected buy my closing out a card? Thanks in advance.
chaz
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Re: Hw many credit cards to own?

Post by chaz »

I have 2.
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Sheepdog
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Re: Hw many credit cards to own?

Post by Sheepdog »

Number of credit cards is not what is important. What is important is length of credit history and low debt. Read from myFICO for credit education http://www.myfico.com/CreditEducation/I ... Score.aspx.

Here is just part of the education,

Amounts Owed Tips

This category contributes 30% to your score's calculation and can be easier to clean up than payment history, but that requires financial discipline and understanding the tips below.

Keep balances low on credit cards and other "revolving credit".
High outstanding debt can affect a credit score.
Pay off debt rather than moving it around.
The most effective way to improve your credit score in this area is by paying down your revolving (credit cards) debt. In fact, owing the same amount but having fewer open accounts may lower your score.
Don't close unused credit cards as a short-term strategy to raise your score.
Don't open a number of new credit cards that you don't need, just to increase your available credit.
This approach could backfire and actually lower your credit score.

Length of Credit History Tips

If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.
New accounts will lower your average account age, which will have a larger effect on your score if you don't have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
Johm221122
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Re: Hw many credit cards to own?

Post by Johm221122 »

2 rewards
Walmart(use 3 or 4 times a year)
Old card with highest limit(use every other month with small purchase)
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sscritic
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Re: Hw many credit cards to own?

Post by sscritic »

Credit score now or credit score then?

If you open new cards with high limits, you will get new cards and high limits. After a while the new cards will be old cards, but the high limits will still be high limits. High limits with low balances is good. I like high limits.

I have seven credit cards. I am most likely to use one of the two AMEX cards or the card that is offering 5% back on groceries this month.
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pennstater2005
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Re: Hw many credit cards to own?

Post by pennstater2005 »

I own four.

1. Sallie Mae Barclays card
2. Amazon rewards card
3. Discover It card
4. Bank of America card

I only use the Sallie Mae and amazon cards now. Bank of America card was for a $100 sign up bonus with stipulations I could easily meet however sallie Mae card was better for gas and groceries, and the Discover It card became a pain to sign up for rotating categories. I kept forgetting. If the right offer for me comes along I would get another one.
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davebarnes
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CreditKarma says

Post by davebarnes »

CreditKarma says the ideal number is 20.
Crazy, I know.
They lower your score for fewer than 20.
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Andyrunner
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Re: Hw many credit cards to own?

Post by Andyrunner »

I have two. Chase card and a Target redcard.

One for regular purchases one for shopping at Target as I get 5% off, free shipping, and most of my groceries is from there. I dont see a need for more.
livesoft
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Re: Hw many credit cards to own?

Post by livesoft »

I have several cards that I have never ever used. As far as daily use, I think one should have about 4 cards, although one of them will be the primary card. Here's what I use:

1. 2% cash-back Amex. My current workhorse card.
2. Frequent flyer miles Mastercard for travel on my local airline. I get discount, airline club, companion tickets, etc.
3. 5% cash-back card because the categories change, but sometimes they match what I am going to spend money on anyways.
4. 1% cashback CapitalOne for the foreign travel. Outstanding exchange rates. The cards above also do foreign travel, but this one will always work.

Other cards:

5. USAA mastercard. I use this one for the 0%-interest no-fee cash advances which they periodically offer. I take all cash to my limit and buy a bond fund or CD with the money. This card has made me thousands of dollars or has cost USAA thousand of dollars, take your pick.
6. A card attached to overdraft checking account, never used.
7. A card attached to a brokerage margin account, never used.
8. A card to get 20% on some purchase some time ago, never used.
9. I can't remember the others.
Last edited by livesoft on Mon Jul 21, 2014 10:43 am, edited 1 time in total.
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Bill M
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Re: Hw many credit cards to own?

Post by Bill M »

We own and regularly use three; all offer rewards of some kind and none charge annual fees. (1) Universal Card, because of its $0 liability policy, for all internet transactions (it gets replaced about once every year or so, due to fraudulent transactions), (2) Discover Card, for almost all day-to-day purchases, and (3) a Bank of America Master Card, because some places don't take Discover. In addition, we often take advantage of introductory offers for other cards, like 40-50K airline miles, but keep the cards only long enough to keep the rewards, never long enough to get charged the annual fee.
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prudent
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Re: Hw many credit cards to own?

Post by prudent »

If your score is already high, don't worry about it.

If you're looking for ways to improve your score, you could apply for more cards but the short-term effect will be to lower your score (due to new inquiries for credit). But it's important to understand the number of credit cards is only part of the factor "number of accounts" - accounts include mortgage, installment loans, auto loans, and credit cards - and credit cards don't count as much as mortgage/installment/auto. And "number of accounts" doesn't impact your score as much as the other factors that have been mentioned. To illustrate, if someone has a history of late payments, adding more credit cards isn't going to help their score - the late payments have a huge impact on score.

For example, my score could be higher if I had a mortgage, an installment loan, and/or a auto loan. But it's sufficiently high as it is. More credit cards won't really help my situation.

That said, I have 5 cards.
Last edited by prudent on Mon Jul 21, 2014 11:06 am, edited 1 time in total.
eddiejov55
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Re: Hw many credit cards to own?

Post by eddiejov55 »

(1) AMEX Blue Cash
(2) AMEX Costco
(3) Chase Freedom
(4) Capital One Mastercard (for International travel)

That covers me.
flyingaway
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Re: Hw many credit cards to own?

Post by flyingaway »

I have two credit cards and one debit card in my wallet, probably have a few at home.
For most people on this board, house is paid off, car is paid with cash, why do you care about your credit scores? For me, although I think I have a very good credit score (I do not even bother to check), I really do not care about it, since I do not plan to apply for any loans in my future life.
rec7
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Re: Hw many credit cards to own?

Post by rec7 »

2 am thinking about going to one.
sscritic
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Re: Hw many credit cards to own?

Post by sscritic »

flyingaway wrote:I have two credit cards and one debit card in my wallet, probably have a few at home.
For most people on this board, house is paid off, car is paid with cash, why do you care about your credit scores? For me, although I think I have a very good credit score (I do not even bother to check), I really do not care about it, since I do not plan to apply for any loans in my future life.
Get a Discover Card, and they will shove a FICO score in your face every month. No checking required, unless you read your bills with your eyes closed.
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Sheepdog
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Re: Hw many credit cards to own?

Post by Sheepdog »

sscritic wrote:
flyingaway wrote:I have two credit cards and one debit card in my wallet, probably have a few at home.
For most people on this board, house is paid off, car is paid with cash, why do you care about your credit scores? For me, although I think I have a very good credit score (I do not even bother to check), I really do not care about it, since I do not plan to apply for any loans in my future life.
Get a Discover Card, and they will shove a FICO score in your face every month. No checking required, unless you read your bills with your eyes closed.
PenFed now gives you a free FICO score with their Visa card, but you get it online, not on paper. I get a credit score with my Discover Card as well. The numbers are different. One is 838 and the other is 807 as of this moment on line. Both are FICO scores. Why? Any idea? it does not make any difference to me, but I am curious.
Last edited by Sheepdog on Mon Jul 21, 2014 12:28 pm, edited 2 times in total.
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sscritic
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Re: Hw many credit cards to own?

Post by sscritic »

Sheepdog wrote: PenFed now gives you a free FICO score with their Visa card, but you get it online, not on paper. I get a credit score with my Discover Card as well. The numbers are different. One is 838 and the other is 807. Both are FICO. Why? Any idea? it does not make any difference to me, but I am curious.
There was a previous thread. I think nisiprius posted that there were 37 different FICO scores. Fair Isaac sells different scores to different types of customers (not the public, businesses) that have different needs.
LFKB
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Re: Hw many credit cards to own?

Post by LFKB »

I have 3.

Chase Sapphire Preferred: used for the double points on restaurants and travel
Chase Ink: used for the 5x points on TV, internet, phone and double points on gas
Amex Starwood Preferred Card: used on all other categories
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Ged
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Re: Hw many credit cards to own?

Post by Ged »

I had the same bizarre result with Credit Karma. I have 4 cards, one of which I have had for 21 years and the others for 5 or less years. No loans, no mortgage etc. Credit Karma dinged my score for this. Everything else in my rating was perfect. They stated that the average person has about 10 credit accounts. I find that hard to imagine.

I'm going to add a Penfed card this year so I have a Chip & Pin for European travel. That's it.
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mmmodem
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Re: Hw many credit cards to own?

Post by mmmodem »

1 of each, Discover , Amex, Visa, MC. This is more for logistics and perks. Credit score wise, as long as you have enough history and limit, you don't need 4. For example, Discover takes me to the front of ticket lines at amusement parks. Visa one time allowed me to order concert tickets early. Amex is for Costco. I also don't have enough credit limit combined on any two cards to ensure a low debt to limit ratio with my usual spending. And I wouldn't want a 5 figure limit on one card anyway.
MathWizard
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Re: Hw many credit cards to own?

Post by MathWizard »

I own 4. I have two old ones. I used one for business expenses, one for personal expenses to keep everything separate.
These are my two oldest. They are not rewards card but I keep them it for length of credit history. This can help credit score.
I have two new ones, both rewards cards, to get some cash back. No fees/costs on any of them as long as pay the balance each month.

I would suggest at least 2 CC's. I had a fraud alert* trigger on one of my cards while was on vacation. I just used the other one
until I got back home.

You seem to have two good ones. I may get one or two more for travel in Europe. Once a chip and pin comes out
in the US, I'd like to get one, assuming it is compatible with Europe's system. I'd also like one
without foreign transaction fees, I just have not gotten one yet. I believe Capital One has such a card.

* No actual fraud, this was a false positive due to a strange pattern of purchases in different locations
due to my being on vacation.
Last edited by MathWizard on Mon Jul 21, 2014 4:10 pm, edited 1 time in total.
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cheese_breath
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Re: Hw many credit cards to own?

Post by cheese_breath »

Three. I think it's good to have two backups in case one (or two) of them gets into wrong hands. This actually happened to me, a long time ago. Somehow the numbers on two of my cards fell into wrong hands at once. I was on vacation at the time, and fortunately I had the third one to get home on while they investigated the other two.
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midareff
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Re: Hw many credit cards to own?

Post by midareff »

I own five.....
Amex Blue Cash Preferred for groceries @6% cash rebate .. used for nothing else.
Penfed Gas Card @ 5% cash rebate .. used for nothing else.
Fido Amex @ 2% rebate .. used for everything else.
Fido Visa % 1.5% cash rebate... used where none of the above are

Discovery... only used when and advantage appears.

The key is: EVERYONE PAYS.
scrabbler1
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Re: Hw many credit cards to own?

Post by scrabbler1 »

I own 2. One is my primary card, a cashback card I opened only a year ago, and a back-up card which used to be my primary card. I dont use the CC often so this is just fine with me. I have no debts and haven't applied for any loans in more than 20 years.
strafe
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Re: Hw many credit cards to own?

Post by strafe »

I view three as the absolute minimum.

When my wife and I purchased our home, we ran into trouble with the mortgage lender because she "only" had two credit card accounts in her name. Lenders now require each borrower to have three independent "trade lines" in order to qualify for a mortgage. Being an authorized user on your spouse's card doesn't count. These three lines don't necessarily need to be credit cards, but if you don't (yet) have a mortgage, you pay cash for your vehicles, and you don't have student loans, what else would they be?

Long story short, the lender would not allow my wife on the loan. Fortunately we qualified without considering her income. (Ironically, our downpayment savings were held in an account that was titled in my wife's name alone, and I was barred from touching it for the downpayment because it would be considered a "gift.") Wife now has three credit cards.
Jerrybaby
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Re: Hw many credit cards to own?

Post by Jerrybaby »

I have nine, actively use six, definitely a cash back/points chaser. Never pay interest. Over the last 12 months, I have accrued and have the ability to cash out about $2400.

IF you care about your credit score, you should never cancel a card unless you've only had it a short while relative to your other cards. If it has an annual fee, you can request to downgrade or to move the credit limit over to another card with no annual fee. I made the mistake around 2007 of canceling three cards with about 20 years of history to them, and the result was not positive at all. Average age of accounts is important.
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Re: Hw many credit cards to own?

Post by bloom2708 »

1. Upromise MC - Any earnings generate 529 savings that are transferred for each of our 3 kids. We don't use it much.
Johno
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Re: Hw many credit cards to own?

Post by Johno »

We have three. But I'm going to get another because I ran the credit score simulator at Credit Karma and it said my credit score would go up almost 50 points if I opened a new card account, whereas the one 'hard' inquiry required would not reduce my score.

But as a practical matter we don't need more than two, had two till pretty recently but Capital One's 1.5% anywhere/anytime was superior to our BOA Visa so we've let that one go basically dormant (run one small automatic charge through it). Our other card is older Amex Blue Cash, no fee, 1% for most, 5% for grocery store, gas station and pharmacy. We get it up to the min to get 5% early in the billing year by using it where ever possible, then just use it for the 5% categories thereafter, and the Cap 1 for everything else. I doubt we'll use the fourth card much at all (besides to earn whatever initial bonus they give).

What an idiotic system though, if getting another credit card raises your credit score. I realize they're setting these scores by automated process with only debt, not asset, information but the results still sometimes seem silly. It's silly our score is any less than pegged at the max already. But I don't really care that much what the score is, definitely don't want to give out any more info than they already have. It's just that if I can raise it by opening another credit card, sure why not.
sesq
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Re: Hw many credit cards to own?

Post by sesq »

At the moment I have 23 open in my name. I have closed a dozen others in the last couple years.

I get a lot of sign up bonuses.
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englishgirl
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Re: Hw many credit cards to own?

Post by englishgirl »

I have 3. I use 2.

I'd close the one I don't use, except that it might have a bad effect on my credit score as one of the other cards is new. So I keep it open with a zero balance. Silly games, really, but I guess we gotta play them if the credit scoring agencies do.
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Re: Hw many credit cards to own?

Post by Calm Man »

I have had one for the last 20 years. I like simplicity. One automatic debit per month to pay it. It is a Chase Freedom Card. I know I don't get maximal possible benefits but I don't care. I will never borrow any money for anything ever again but I know your credit score gets checked on occasion, for example if going to a new rental or buying into a coop apartment. My balance is quite high and I don't think I ever exceed 10% of what is available.
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Post by Taylor Larimore »

Brak:

I have one credit card.

"Our life is frittered away with detail. Simplify. Simplify." -- Henry David Thoreau

Best wishes.
Taylor
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Re: Hw many credit cards to own?

Post by abuss368 »

For the most part we have one credit card. All transactions are recorded here.

We also have two other credit cards: 1) Kohl's and 2) Old Navy. My spouse uses these cards once in a while strictly for the coupons and discounts. These are paid immediately. If it were up to me, I would close these two cards!
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VictoriaF
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Re: Hw many credit cards to own?

Post by VictoriaF »

For a long time, I had two credit cards and did not care about having more for the sake of simplicity. But in the past few months, I have acquired three new cards--and may get one or two more. My reasoning is that this is a special period during my transition from full-time employment to retirement. Being still a salaried employee, I qualify for the cards. As a soon-retiree, I will have time to manage the cards similarly to how I manage my investments and taxes.

In the beginning, keeping track of the three additional cards was very annoying, especially because each has its own quirks with respect to earning and using the rewards. But every month, it's getting easier. In the future, I may decide to simplify again.

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Re: Hw many credit cards to own?

Post by Crimsontide »

I have two: Captial One Quicksilver which we use for everything, and one my employer required me to get (that stays in a lock box and is never used)...
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Re: Hw many credit cards to own?

Post by Twins Fan »

I don't think I actually "own" any credit cards. :D

I do have two that the account holders give me to use though. A Discover card that I use a couple times a year. I have had that account for about 15 years now, so that's my length/history one I hang on to. And I have a Wells Fargo home rebate card. I use that for purchases during the month (= rewards) and pay it off each month.
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Doom&Gloom
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Re: Hw many credit cards to own?

Post by Doom&Gloom »

I have four, and a fifth is on its way. I've become spoiled by receiving cash back and sign-up offers, and now wish to maximize rewards in all major spending categories.
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Re: Hw many credit cards to own?

Post by Buckeye »

3 with total annual fees of about $220.
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Re: Hw many credit cards to own?

Post by MathWizard »

Doom&Gloom wrote:I have four, and a fifth is on its way. I've become spoiled by receiving cash back and sign-up offers, and now wish to maximize rewards in all major spending categories.
Yes, now that you mention it, I think the $100 and $300 sign-up offers are what got me into newer cards, not the
rewards points. Hard to pass up free money.

How do you keep getting the offers of $ for sign up? I haven't gotten for at least a year.
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topper1296
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Re: Hw many credit cards to own?

Post by topper1296 »

I have three, but only carry one of them on me on a regular basis. I'm not counting my 4th card which is a company AMEX.
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Re: Hw many credit cards to own?

Post by whaleknives »

Two: one for credit and one for debit.
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Re: Hw many credit cards to own?

Post by sesq »

MathWizard wrote: How do you keep getting the offers of $ for sign up? I haven't gotten for at least a year.
You don't have to wait for them to send you an offer. Just apply with the company directly.

Two easy, fairly evergreen offers: Barclay Arrivals, $400 of travel after min spend ($3k?) fee waived first year. Chase Sapphire Preferred, 40K-45K UR points (can cash redeem at $0.01 per point, or seek better travel redemptions) after min spend. Then put calendar notes in to cancel or downgrade to the no-annual fee version if each card in 11 months.

I do 8-15 apps a year. I generally want at least $300 of value to apply.
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Kosmo
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Re: Hw many credit cards to own?

Post by Kosmo »

We have 7. 3 are used regularly, 2 occasionally, and 2 only for certain seldom large purchases.
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Re: Hw many credit cards to own?

Post by Louis Winthorpe III »

flyingaway wrote: For most people on this board, house is paid off, car is paid with cash, why do you care about your credit scores? For me, although I think I have a very good credit score (I do not even bother to check), I really do not care about it, since I do not plan to apply for any loans in my future life.
Credit scores affect insurance rates, and many employers check the scores of job candidates. They matter even if you never borrow another dime.
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Re: Hw many credit cards to own?

Post by amitb00 »

I try to maximize rewards.
Redcard 5% at target
Fidelity Amex and Priceline 2% everywhere
Discover and chase freedom 5% rotating categories
US bank card 5% for categories chosen by me
I have two of freedom, discover, us bank to allow me to get over their quarterly limit if needed
Penfed Amex for 5% on air ticket
List goes on.
Net result at my expense level I get around 4% cash back over all
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Doom&Gloom
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Re: Hw many credit cards to own?

Post by Doom&Gloom »

MathWizard wrote:
Doom&Gloom wrote:I have four, and a fifth is on its way. I've become spoiled by receiving cash back and sign-up offers, and now wish to maximize rewards in all major spending categories.
Yes, now that you mention it, I think the $100 and $300 sign-up offers are what got me into newer cards, not the
rewards points. Hard to pass up free money.

How do you keep getting the offers of $ for sign up? I haven't gotten for at least a year.
Check the FlyerTalk forums http://www.flyertalk.com/forum/credit-d ... grams-390/. You will learn far more than you want to know. Most of those guys are far too aggressive for my tastes or the effort I want to expend, but you can learn what you need to go as far as you wish.
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Re: Hw many credit cards to own?

Post by IlliniDave »

I quit using credit cards in 2008. From 2008-2014 all the accounts closed (except one I have from my employer, on which the limit was lowered to $15 from disuse). oOver that time my credit score rose appreciably (as my married years receded in to the past and began to roll off). In the last couple weeks I did get a Capital One Quicksilver. I am using it to replace everything I was doing with my debit card. Dave Ramsey would brand me a heretic, but I couldn't see the logic of passing up an effective 1.5% discount on everything.
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joe8d
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Re: Hw many credit cards to own?

Post by joe8d »

No Credit cards.One Debit card
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kayanco
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Re: Hw many credit cards to own?

Post by kayanco »

Don't close the oldest card, because history is important.
Another reason not to close cards is, it will reduce your credit available and increase credit utilization, that too can have some negative affect on credit score...but not too drastic.

Overall I think having few cards is good and easy to manage. There really isn't much advantage to having many cards.

I would recommend 1 or 2 max:

1. A good rewards/cash back card
2. A good travel rewards (if you travel)

Get one with chip-n-pin if you travel, otherwise no need. Get Visa Signature if you quality.
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Aptenodytes
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Joined: Tue Feb 08, 2011 7:39 pm

Re: Hw many credit cards to own?

Post by Aptenodytes »

How long is a piece of string? Get the first card. When you need a second, get it. When you need a third, get it. Don't get any cards you don't need. You can't know in advance where you'll stop, unless you have a fetish for number-of-credit-cards.

E.g. in my case I have one to use only for business expenses; one for family purchases; one for Amazon to get more rebates; one for my favorite airline to get more benefits when I buy tickets there; one for Amtrak to get more points when I buy Amtrak tickets, one for Home Depot to get some big rebate offer, one for gas purchases because I can get 5% back on gas purchases if I use a different card for gas, and so on,
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