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[Amory]

What about cards with annual fees? Are you encouraged to keep them forever even if you don't want to pay that fee, just for the sake of credit score?

I don't currently have any cards that have an annual fee, though the Chase Sapphire Reserve card is tempting...

I don't like the idea of paying to use a credit card. I like it when they pay me and I give them nothing in return

 

[Patrick Young]

One, because I don't have space left in my wallet.

 

[Ron Mexico]

Holy shit 16 is insane, but I agree with everything else in your post. I have 4, 3 major cards and 1 store card. I've reduced the amount I had since a lot of the smaller balance cards weren't giving me increases and Discover pretty much covered the amount I had on those cards when I got them.

16 seems like a lot at first glance, I agree. I'm also 36 and a homeowner. So a promo on that new roof? Line opened. That HVAC system I needed? Line opened. 0% on my ex-wife's engagement ring? Line opened. 0% on my now-fiancee's ring? Line opened.

You get the idea.

16 isn't really all that many and my actual business goes to 2, specifically for the rewards. My utilization is essentially 0.

I'll happily concede that doing something (in this case CK) to monitor your credit is a net positive. I check Zillow all the time for market trends on my house. I draw the line on considering the score to be anything more than an approximation. I'm completely checked out when it becomes a measure of e-peen.

 

[AppleSeason]

I have 2 and it's too many already. I had to request a (credit) card since some hotels have issues with debit cards, and I am cancelling it as soon as I am back.

 

[leakey]

2 is my max and current number of CCs held. Over that is too many.

 

[tebunker]

First off - don't trust CreditKarma to get a perfect picture of your credit score. Pull a real FICO - you can get a free one a variety of ways. Your real square can easily fluctuate (often for the worse) by ~25+ points from CK.

Credit Karma, for example, puts me at 820. Whereas a real pull put me at 805.

Secondly, you're right - more credit cards just equal, assuming you don't spend more, a lower revolving utilization. The more "available credit" you have, looks better for your score and odds at being a good loanee.

Each new CC does a hard pull on your account. 1 a year is no biggie. 2 is pushing it a bit, especially if you are looking to buy a car or a house. That said, pulls don't terribly effect your score.

The problem with CLOSING a CC is two fold, really: One, it's absolutely going to lower your available credit, and thus also likely demonstrate a higher utilization (even if you pay off regularly). Secondly, if it's an older card - well, now your credit HISTORY isn't as long. And CC history actually does have a pretty significant effect on your score.

Don't go open a new card every six months for kicks. That's a bad idea. But assuming you don't see credit cards as "free money," there's no harm whatsoever in having a bunch of cards.

Like you, I got one right as I turned 18. Another a few years later. Another a few years later. AT 27, almost 28, I have five cards. But just got married, and my wife has four. So that puts us at nine cards. Together, we have about $200,000 of available credit, lol. Thing is, we usually put about $3,000 on one or two cards each month and pay them off, and another ~$3K on business expenses that I get paid back on - so yay points.

Just be mindful that if you have too many cards, and end up not using one for an extended amount of time, the card may be closed on you without your input - which has a negative effect. So even a shit card, I'd use it once or twice a year.

Lastly, if you do have several cards and one is just driving you nuts - you'll never use it - it's likely not going to kill you if you close it. The temporary hit to your credit score is better than either being tempted to overspend or making otherwise bad decisions with credit.

This is all really good advice. Between the wife and I we have like 7 cards and don't even come close to that limit but we are strict about what we use and paying them off responsibly.

So it truly does depend on the person.

Me I am thinking it time to switch off the chase freedom, but I haven't shopped around in a while. Most of our stable is from store specific cards.

The only other key I can recommend is to use a budget and save for what you want to spend. You can use the card for purchases but since you have the cash set aside to pay for it, it isn't debt. I guess the key is to not really carry the debt. Too many folks aren't disciplined enough to not do thay.

 

[BearPawB]

Yeah, I have like...3-4 i regularly use for things.
Then several retailer specific cards with no interest that I slowly pay down.

 

[Korey]

This must be an American thing, I've never had or needed a credit card. I've had the same VISA/Debit card my bank gave me 14+ years ago, they just send me a new one when the old one expires.

Credit cards in America pay you to use them. It's basically free money for using a better version of debit cards.

It's worthless if you don't like getting a few hundred dollars a year for free though. Edit: other than an excellent way of building your credit of course.

 

[Nemesis121]

I have 1, and don't want it, i had 3 then paid them off, i got rid of 2 even though my friends said don't it will hurt my credit, only keeping this one for credit, otherwise i really don't want these fucking things, I debt free, I owe nothing to anyone and i love it..

 

[WorldStar]

Credit cards in America pay you to use them. It's basically free money for using a better version of debit cards.

It's worthless if you don't like getting a few hundred dollars a year for free though.

Not true, simply building good credit is incredibly valuable. Much, much more valuable than getting a "few hundred dollars a year."

When my wife and I bought our first home, our mortgage rate was amazing due to our stellar credit.

Financing on large purchases is a huge, huge reason to focus on building good credit.

 

[youngplaya21]

Credit cards in America pay you to use them. It's basically free money for using a better version of debit cards.

It's worthless if you don't like getting a few hundred dollars a year for free though.

I got more than $200 from my Amazon card this year alone. No interest paid on any of my credit cards. Pay everything with a credit card, and use my checking account to just pay off the credit cards and rent. Plus the advantage of having good/great credit. And even an extra penny is more than you're getting swiping your debit card the exact same way. Just make sure you're only buying stuff you can actually afford and you'll be fine

 

[pokeystaples]

I only have 1. Got the balance up to 10K in my late 20's. Worked pretty hard paying it all off. Now I make a point to pay it off each month. Current balance is less than $130 and I am totally done with Christmas shopping.

You guys have me feeling weird for only having the one Southwest card.

 

[Amory]

I only have 1. Got the balance up to 10K in my late 20's. Worked pretty hard paying it all off. Now I make a point to pay it off each month. Current balance is less than $130 and I am totally done with Christmas shopping.

You guys have me feeling weird for only having the one Southwest card.

I think the point of all this is that there isn't any "right" number to have. And that includes a small number. All depends on the person.

Lots of people seem to think that having a lot of credit cards is symptomatic of someone spending more money than they have, and getting themselves into debt. In reality, it seems like a lot of people with more cards trust themselves more to not misuse them, and want to cash in on the rewards.

 

[Ron Mexico]

I think the point of all this is that there isn't any "right" number to have. And that includes a small number. All depends on the person.

Lots of people seem to think that having a lot of credit cards is symptomatic of someone spending more money than they have, and getting themselves into debt. In reality, it seems like a lot of people with more cards trust themselves more to not misuse them, and want to cash in on the rewards.

Pretty much this. I would also say there's a big difference between the number you "have" and the ones that you actually carry.

For me, like a lot of others, my choice of cards is based on which one offers the most benefits. The issuers are still making plenty from merchant fees, so I have zero sympathy as I work to maximize my personal benefit.

The available credit I have is not "my" money. It's a loan at the ready for me to take when I need it. It's the bank's money until I borrow it temporarily and repay it in full.

 

[Korey]

Not true, simply building good credit is incredibly valuable. Much, much more valuable than getting a "few hundred dollars a year."

When my wife and I bought our first home, our mortgage rate was amazing due to our stellar credit.

Financing on large purchases is a huge, huge reason to focus on building good credit.

You're right of course. Was being sarcastic to the guy who didn't use credit cards. Edited my post.

 

[Korey]

I think the point of all this is that there isn't any "right" number to have. And that includes a small number. All depends on the person.

Lots of people seem to think that having a lot of credit cards is symptomatic of someone spending more money than they have, and getting themselves into debt. In reality, it seems like a lot of people with more cards trust themselves more to not misuse them, and want to cash in on the rewards.

Actually there is a right number. Someone did the research and I believe 5 is the optimal number of cards to have for your credit to benefit. It's not a thing where the more cards you have the better.

 

[Ron Mexico]

Actually there is a right number. Someone did the research and I believe 5 is the optimal number of cards to have for your credit to benefit. It's not a thing where the more cards you have the better.

Incorrect. The factors for your FICO score are payment history, ratio of outstanding balance to total available credit, length of credit history, mix (i.e. mortgage, auto, credit cards, etc), and new credit (both new lines and inquiries fall under this).

There is absolutely nothing wrong with having an unlimited number of cards, so long as you're being responsible.

 

[brandywine]

Credit cards in America pay you to use them. It's basically free money for using a better version of debit cards.

It's worthless if you don't like getting a few hundred dollars a year for free though. Edit: other than an excellent way of building your credit of course.

It's certainly not worthless.

1.) Better fraud protection. Money isn't actually coming out of your bank account if something is compromised.
2.) Rental car insurance. Don't need to pay for that collision insurance when renting a car.
3.) Extended warranties on products. Many cards have this built in.
4.) Flight cancellation insurance built in.
5.) Roadside assistance.
6.) Many cards have price refund systems in place that will refund you money if you find a lower price on a product in a certain period.

And that is all besides any rewards or cashback features.

 

[mrhyderager]

I would actually love a generic "Become Debt Free in 2017" OT to find/help folks who, like myself, are relatively young and have some form of debt they'd like advice on managing. I've found that most "credit advice" firms are by and large undercover predatory lenders and money pits.

A group consensus on what good debt practices and credit card practices etc are I think would be a huge help.

 

[Ingeniero]

I have 4 and I do alright. Never payed interests and have a lot of miles/bonnus back.

 

[RBH]

I would actually love a generic "Become Debt Free in 2017" OT to find/help folks who, like myself, are relatively young and have some form of debt they'd like advice on managing. I've found that most "credit advice" firms are by and large undercover predatory lenders and money pits.

A group consensus on what good debt practices and credit card practices etc are I think would be a huge help.

This might be helpful to you:


http://www.neogaf.com/forum/showthread.php?t=763370

 

[iFirez]

1

People say this is the joke answer but I agree. I've never even gone into my overdraft on my debit card.

You can build credit other ways, credit cards just entice you to spend recklessly imo.

 

[Moppet13]

I've got about 8 or so, that's probably a bit too much.

 

[Bruce Springsteen]

1

 

[VLEXP]

I have three,

a Mastercard, a visa, and BestBuy only.

That seems pretty good tbh.

 

[Stasis]

We only have 2, and we each have a card for both. I think it's like $20k and $15k limits. No store specific cards or anything. We go with whichever one has decent returns or points that match our lifestyle and needs. Change every year or two. Keep them at zero or very very low, though they've occasionally carried a small balance in the past during major purchases. I want them mostly for emergencies, like a "just in case" type deal. Not a huge fan of buying on credit. I use them regularly for said points and rewards and for online shopping obviously, but pay back right away.

Edit: Now that I think about it, we've been with the same cards for over 3 years now, except for one that was basically auto switched/upgraded to the new version when we called in for another reason. I should check new deals.

She has flawless credit. I have a great rating, just not perfect. Took a while to get there. I made dumb mistakes when I was a lot younger. Be careful with first cards, kids! Though I learned a valuable lesson early on which has since guided me well.

 

[Diprosalic]

two.

i have one and i struggle to see why i need a second.
but i don't think it's harmful to have more.

 

[youngplaya21]

People say this is the joke answer but I agree. I've never even gone into my overdraft on my debit card.

You can build credit other ways, credit cards just entice you to spend recklessly imo.

If you can't trust yourself with credit that's fine, but no need to project on others. Especially with half the thread proving otherwise. Also, may want to read this:

It's certainly not worthless.

1.) Better fraud protection. Money isn't actually coming out of your bank account if something is compromised.
2.) Rental car insurance. Don't need to pay for that collision insurance when renting a car.
3.) Extended warranties on products. Many cards have this built in.
4.) Flight cancellation insurance built in.
5.) Roadside assistance.
6.) Many cards have price refund systems in place that will refund you money if you find a lower price on a product in a certain period.

And that is all besides any rewards or cashback features.

All of which your debit card doesn't give. Plus I'd much rather have my credit card information stolen than my debit card info (happened before on my BoA debit card, and it wasn't a fun experience)

 

[Korey]

Incorrect. The factors for your FICO score are payment history, ratio of outstanding balance to total available credit, length of credit history, mix (i.e. mortgage, auto, credit cards, etc), and new credit (both new lines and inquiries fall under this).

There is absolutely nothing wrong with having an unlimited number of cards, so long as you're being responsible.

You have no idea what you're talking about. You know the number of total accounts you have open affects your score right? As well as per category.

Someone on the credit forum did extensive research on this. I'll try to find it when I get home.

 

[RoninChaos]

I have 6 that I use.

Citi double cash for general 2% back
Discover It for rotating 5% cash back categories and discover deals.
Chase Freedom for its 5% rotating categories thar are usually different from discovers.
Amazon Visa for 3% back when Discover doesn't have 5% back periods
Bank America Travel Rewards for international travel and foreign purchasing. No foreign transaction fees
Target red card for 5% off at Target and free shipping.

Yup, that's about what mine looks like so I can take advantage of rotating catagories. The only different for me is I don't have a chase freedom, and have a capital one quicksilver that was converted from my previous old capital one card I've had since I was 18.

 

[SmokeMaxX]

I have about 10 credit cards. Possibly more. Credit score's been over 800 for a while.

 

[youngplaya21]

You have no idea what you're talking about. You know the number of total accounts you have open affects your score right? As well as per category.

Someone on the credit forum did extensive research on this. I'll try to find it when I get home.

??? Isn't it just what he said when he said mix (installment loans, credit cards, etc.) though? And thought the more the better mix wise, which is also what he' saying. Or are you saying you can indeed have too many open total accounts

 

[Ron Mexico]

People say this is the joke answer but I agree. I've never even gone into my overdraft on my debit card.

You can build credit other ways, credit cards just entice you to spend recklessly imo.

If you're in the US, please go to your bank and Opt-out. That overdraft on your debit card is something you'd specifically have to agree to and the banks LOVE it when you do. Essentially even if there's an authorization that would go over your available balance, you'll get whacked for an overdraft fee. Many, MANY banks have advertised this as a "feature" but the ethics behind it are questionable at best.

If you have a credit card or other means to pay, you should never Opt-In to allowing overdrafts through debit card purchases. The only time I'd ever advocate opting in is if the individual is painstakingly accurate with tracking their balance and has absolutely no other means to make the purchase.

I know whoever opened your account marketed it as a wonderful service. It's not. Full stop. Bankers have quotas around making sure X% of customers Opt-In because it's like a license to print money. The whole reason Regulation E happened is because banks couldn't help themselves on punitive fees.

God to hear stuff like the bolded is depressing.

 

[Stasis]

Reading some posts in here I feel like we could get more for different benefits. I know we'd qualify easily and are responsible with them. I just don't know that I have the patience to work through 5+ cards and know which to use when and where. That's gotta be some work! I admire the dedication. Maybe I'll try adding one or two and slowly progressing.

 

[Ron Mexico]

You have no idea what you're talking about. You know the number of total accounts you have open affects your score right? As well as per category.

Someone on the credit forum did extensive research on this. I'll try to find it when I get home.

Nope. No idea what I'm talking about. Only did this for the past 16 years. New credit impacts your score. Not total number of existing lines.

Here's a Forbes article for you-- http://www.forbes.com/sites/learnve...it-cards-should-you-really-have/#2b39e5f295e4

I'll make it even easier and quote the important part.

The most common is the FICO score, which can range from 300 (paltry) to 850 (perfect) depending on five factors: payment history, debt-to-credit utilization, length of credit history, credit mix and new credit; how many credit cards you have could significantly impact this number.

How many could impact this number is by running up balances and opening several new lines. It's not rocket science.

 

[youngplaya21]

Reading some posts in here I feel like we could get more for different benefits. I know we'd qualify easily and are responsible with them. I just don't know that I have the patience to work through 5+ cards and know which to use when and where. That's gotta be some work! I admire the dedication. Maybe I'll try adding one or two and slowly progressing.

Could always just get one of the 1.5% or 2% cash back cards (Citi Double Cash or maybe Freedom Unlimited) and go from there. That's usually enough for some people

 

[AuthenticM]

2

One is enough.

 

[hack646]

20+ cards over the past 2-3 years have allowed me to amass nearly 2 million miles/points from sign up bonuses and take numerous trips around the world, essentially for free. My credit score has never been higher- high 700s across all 3 reporting agencies. If you're responsible with credit (ie never carry a balance) and know how to play the "game" credit cards can be a valuable tool in realizing your travel goals (or just making a few grand from cash back signup bonuses).

 

[Attract Mode]

I've got 3. The Chase Sapphire with the fee that I pay off every month for the buku travel points, some PlayStation branded Visa that give me 10% off digital purchases that I strictly use to buy stuff off PS Store, and that Amazon Prime one that give you 5% cash back on anything on Amazon.

I've had several that I opened in the past, used for one big purchase or reaped some rewards, and just let them expire and close. Credit score hovers around 800. I pay them off religiously and have never had debt.

I used to be pretty anti-credit, but opened up one "just in case" and to "build credit" when I was younger and quickly realized the benefits. I stopped using debit a few years ago except to pay bills.

There's no right answer, just don't spend money you don't actually have.

 

[Ron Mexico]

http://www.myfico.com/credit-education/credit-scores/

Some more insights into your credit score and how it's calculated, directly from Fair Isaac

 

[WaterAstro]

More than 1, unless you need both a Mastercard and Visa because the places you frequent don't accept one or the other.

 

[Flo_Evans]

One, because I don't have space left in my wallet.

wallet?

how quaint!

 

[boxter432]

Credit card churning and perk exploitation is basically extreme couponing for the middle to upper middle class. That Chase Sapphire Reserve offer recently was ridiculous.

got that card to pay for wedding stuff should fund a good chunk of our honeymoon.

 

[SeanC]

I have two, one my everyday for cashback that I pay off regularly (so essentially free money), the other just in case but has 5% back during various windows on stuff so I use if there's something that fits it.

Oh and a Best Buy card that I like to use for no interest big-electronic purchase once in a while but that's it.

I like to keep it simple.

 

[GKSilKamina]

Four, though one is a store-exclusive card used solely on groceries/cleaning supplies. I'm in the process of paying them all off. One of them should be paid off by the end of the month, and another by April. Hopefully.

 

[ty_hot]

what the hell is this thing of 'you shouldnt close a credit card'? Is this an american 'rule'? I never heard of it.

I have a credit card in Brazil and only a debit where I live. I do receive 3 months upfront form my scholarship so that kinda helps on buying more expensive stuff, but even if I wolndt receive like this I probably wouldnt use a credit card.

 

[Ron Mexico]

what the hell is this thing of 'you shouldnt close a credit card'? Is this an american 'rule'? I never heard of it.

I have a credit card in Brazil and only a debit where I live. I do receive 3 months upfront form my scholarship so that kinda helps on buying more expensive stuff, but even if I wolndt receive like this I probably wouldnt use a credit card.

Closing a card means you're utilizing a higher ratio of what's left. Just a numbers game.

 

[WorldStar]

Closing a card means you're utilizing a higher ratio of what's left. Just a numbers game.

Also potentially effects overall age of credit

 

[Kusagari]

Also potentially effects overall age of credit

This is the true problem. Someone closing their oldest credit card could be disastrous for their credit history.

 

[redlegs87]

I only have one which I opened a few months ago and is my first CC. I also got out a credit builder loan to help build my credit early on. I can wait a year and ask for a limit increase in the card I already have or should I apply for a new one in the coming months? I don't really spend a crazy amount so I am thinking of just sticking with the one for at least a little while.