Support NeoGAF

[Symphonia]

I have just the one (Vanquis) with a credit limit of £2000. I've currently used £250 of that, and I don't intend to use any more. It's more of an emergency funding source rather than a means of paying for goods.

 

[Makai]

No limit. Get as many as possible.

 

[hydrophilic attack]

why would you ever need more than one

 

[ty_hot]

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

Assuming you are actually using them.

 

[Husker86]

why would you ever need more than one

Rewards.

If you are responsible, I don't think there is such a thing as "too many".

It can obviously be disastrous for some, though.

 

[Ron Mexico]

Assuming you are actually using them.

Correct. And the history mentioned earlier plays a role as well. Ties into payment history, mix, etc.

 

[Syriel]

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.

A decade or so back that was true. The credit scoring model saw a bunch of available credit as a risk. Someone who never uses credit at all (zero utilization with a bunch of available credit) is currently seen as a risk. But someone who has a lot of credit with moderate utilization (2-3% a month) is seen as very low risk.

Having 10 or 20 credit lines won't hurt your score just because you have a lot of cards.

 

[Zoe]

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

Now on the other hand, I've closed newer cards that were dragging down my credit age and weren't really contributing to my total credit.

 

[BadHand]

I've always had a Visa and MasterCard, one is cashback and another is commission free foreign transactions.

One is also a backup for the other, just in case.

Can't imagine any purpose for a third card

 

[Kuga]

I have two and no plans to open another any time soon. I use both each month and pay off the entire balance. It's really just to build credit.

Though I don't see any real problem with 3 - 5 credit cards or even more if you know what you're doing and have specific benefits for using them.

 

[Ron Mexico]

Now on the other hand, I've closed newer cards that were dragging down my credit age and weren't really contributing to my total credit.

I think in many cases, when we're to this level of nuance, we're already in a pretty solid place FICO-wise and just now maximizing our options/staying north of that 740ish score for top offers.

That said, while there are fundamental issues with FICO to say the least, nobody will ever knock you for staying on top of it.

 

[BlueBadger]

I have 2, but I really only use 1. The other one is from my credit union.. Like a 500 dollar limit back from when I was a student.

 

[CrunchTime]

I have 2. One with rewards points that I pay annual fee on, other basic card in case the first is lost or compromised.

 

[Jerbs]

I have one, that is my fall back. There really isn't a number that is too many, as long as they are used responsibly. If you are carrying balances forward on more than 3 cards a month, that is too many.

 

[ReBurn]

I have two. I have a Wells Fargo Signature card and an American Express One card. I don't carry a balance on either, but I do use them for purchases where I want some added fraud protection or insurance benefit.

I have one, that is my fall back. There really isn't a number that is too many, as long as they are used responsibly. If you are carrying balances forward on more than 3 cards a month, that is too many.

You can have too many, though. Too many open credit accounts can lower your credit score and impact your ability to borrow money, even if you don't carry a balance on those accounts.

 

[Amory]

So let's say I decided to go for the Chase Sapphire Reserve card...how do they charge the annual fee? Do they just put it on your card all at once when the account is opened and then again each anniversary?

 

[Syriel]

You can have too many, though. Too many open credit accounts can lower your credit score and impact your ability to borrow money, even if you don't carry a balance on those accounts.

Not really. As long as you show some utilization, the more available credit the better.

So let's say I decided to go for the Chase Sapphire Reserve card...how do they charge the annual fee? Do they just put it on your card all at once when the account is opened and then again each anniversary?

Yup. Shows on first statement.

 

[Linkura]

1. Too lazy to get another. I should probably have 2 just in case because I don't carry much cash.

 

[Jzero]

I have two. I have a Wells Fargo Signature card and an American Express One card. I don't carry a balance on either, but I do use them for purchases where I want some added fraud protection or insurance benefit.
You can have too many, though. Too many open credit accounts can lower your credit score and impact your ability to borrow money, even if you don't carry a balance on those accounts.

My mom has like 20 for some reason and she has a pretty good score
For me personally, i only have one.

 

[Ron Mexico]

You can have too many, though. Too many open credit accounts can lower your credit score and impact your ability to borrow money, even if you don't carry a balance on those accounts.

Again that's not correct. The only way multiple lines would impact your score is if you opened them recently, carried a significant ratio of balances to your available credit, or missed payments.

This is the exact reason why we need to do a better job educating borrowers about how FICO works. The amount of misconceptions and outright falsehoods is staggering.

 

[danm999]

Just have a VISA debit card but since I'm not American I really don't need to build a credit rating.

 

[WorldStar]

You can have too many, though. Too many open credit accounts can lower your credit score and impact your ability to borrow money, even if you don't carry a balance on those accounts.

False

 

[andythinkpad]

A decade or so back that was true. The credit scoring model saw a bunch of available credit as a risk. Someone who never uses credit at all (zero utilization with a bunch of available credit) is currently seen as a risk. But someone who has a lot of credit with moderate utilization (2-3% a month) is seen as very low risk.

Having 10 or 20 credit lines won't hurt your score just because you have a lot of cards.

Personally, I don't care about credit score models.

I close the cards that offer signup bonus and nothing else, about 1-2 years later.

I can't be bothered to sign onto the cc website once in a while to make sure nobody steal my card.

I usually request a new card number for a card that's a few years old, to lower the id thief risk.

It really doesn't matter to a person if the credit score is in the high 700 or low 800.

 

[Ceres]

Doesn't matter if you are good with money and paying off the cards. I have 5 at the moment. Chase, Citi, Amex, Kohls, and Macys. I've had others in the past that were store specific (Best Buy, some other department store) but they've been cancelled. Chase is our main card. Amex I use for their deals, free shoprunner, and event presales that are Amex card only. Citi is the card Ive had since college but don't use.
If you go to a site like Slickdeals people talk about getting deals using 10+ Amex cards since each one gets the unique discount.

 

[SprachBrooks]

Is this a thing anywhere else other than the US?

Correct me if I'm wrong, but is this a thing in the UK as well? I've often heard my sister say she's going to get a credit card and use it to boost her credit score. Not sure if it's bullshit.

Anyway, I'm 24 and I only have a debit card.

 

[kunonabi]

2. Whatever you do don't get up to 20 like my mom did.

 

[DavidDesu]

So many so beholden to this fabled credit history malarkey.... Urgh modern life.

 

[NoLongerALurker]

You shouldn't have more than 3 credit cards. 2 with limits and 1 without is the ideal set up IMO.

 

[OmegaTreeFish]

I have one. I pay it off every month so they get nothing but i get all the saftys and the bonuses.

You shouldnt need more than that.

Edit.

However if you have multiple cards simply because of different bonuses you make use of its fine as long as you clear the balance each month. Thats the key to all this.

 

[OmegaTreeFish]

Correct me if I'm wrong, but is this a thing in the UK as well? I've often heard my sister say she's going to get a credit card and use it to boost her credit score. Not sure if it's bullshit.

Anyway, I'm 24 and I only have a debit card.

Yes its a uk thing as well.

When my wife and i got a loan many years ago we had to use her name because my credit score wasnt good. Why wasnt it good? Because i had never used a credit card. I had never been in debt or miss paid anything. Now i have had a credit card for my years, pay it off efry month conpletely my score is great.

Its dumb but its needed.

 

[Dinskugga]

I have two. BUT i have NEVER used any of them with credit.

One is my main card. Where i have my money. And the second card is me and my girlfriends food card. Its one acount we have too cards connected too. So both can buy food without borrowing one card from echother. We put money for food on it every month.

 

[SillyEskimo]

I have 1 with a 50k limit. My wife has 1 with a 30k limit. It's worked well for us.

 

[brandywine]

You shouldn't have more than 3 credit cards. 2 with limits and 1 without is the ideal set up IMO.

Why.

 

[Simon Belmont]

More than one in my opinion but I have the benefit of being able to secure a line of credit against property. Everyone's situation is going to be different.

 

[brandywine]

More than one in my opinion but I have the benefit of being able to secure a line of credit against property. Everyone's situation is going to be different.

But that doesn't provide rewards or credit card benefits.

 

[Simon Belmont]

But that doesn't provide rewards or credit card benefits.

Also has an interest rate that's an order of magnitude less.

 

[Veitsev]

There is no such thing as too many. There is just bad utilization and poor average credit history to consider. People who argue that CC are a bad thing do so mostly out of fear of their own self control.

 

[brandywine]

Also has an interest rate that's an order of magnitude less.

If you are using a credit card correctly you should never pay interest

 

[Simon Belmont]

If you are using a credit card correctly you should never pay interest

Thanks, tips.

Like I said, in my opinion if you have property you're better off getting your credit through that. If you don't then you're going to have to build credit through other means and credit cards may be a good option. That's been my experience.

 

[SiteSeer]

got 6, only use one regularly, hit my personal max 834 fico score last month. all balances are paid off every month, haven't paid interest since college. the latest card i got offered $200 back on $500 spend in 90 days. gonna help pay for the new iphone.

 

[jfkgoblue]

I have one, but never use it, it also has a ridiculous limit that I will never reach.

I am of the opinion that CC's are one of the major problems in this country, way too many loan out money on them and then can't pay it back. There's nothing wrong with them if people used them properly, but way too many see them as free money.

For any purchase (other than a house and maybe a car) it is better to simply use cash you already have, not cash that you hope to one day have. When I first got my CC I was dumb with it, and racked some debt(not nearly as much as many though) and after I paid it off I haven't touched it. I do have a car loan(which I regret signing now, but it isn't too bad) and I eagerly await paying it off so I am 100% debt free. And you don't need credit really for a mortgage, I knew a guy whose dad destroyed his credit by stealing his CC info and he was still able to get a decent mortgage rate.

So all in all, stay away from them if you can help it, going into debt is never a good thing, and getting good credit is not as necessary as they would like you to believe.

got 6, only use one regularly, hit my personal max 834 fico score last month. all balances are paid off every month, haven't paid interest since college. the latest card i got offered $200 back on $500 spend in 90 days. gonna help pay for the new iphone.

This is when a CC is good, but the vast majority don't use them like that.

Thanks, tips.

Like I said, in my opinion if you have property you're better off getting your credit through that. If you don't then you're going to have to build credit through other means and credit cards may be a good option. That's been my experience.

What do you need credit for? To be able to take out more loans. There really isn't any good reason to build credit. I say this as someone with an 800 or so credit score who used a CC exclusively and took out a car loan back when I believed that credit was super important.

 

[No_Style]

Got 2. One for day to day use with a fantastic rewards program with no fees. The other has no foreign conversion fees which is strictly used for international purchases. I am the type credit companies must loathe because I never carry a balance. I pay off balances weekly out obsession of having $0 balance. I just credit cards for rewards.

I had 3 at one point but I felt it was too many because I never used it.

 

[HawksWinStanley]

I have two. One as my main and another for emergencies that I never really use.

We just bought a new car and was kind of surprised to see my credit score was 865.

 

[Momentary]

If you're not a spending fool then there is no limit. I have 8 and have a damn good FICO score. I have never been charged interest on any of them since I pay things back immediately. I was FORCED to get 1 card for my job or risk getting in legal trouble if I didn't, so I actually have 7 that I got willingly. That's the only card I despise.

 

[Nilaul]

1 is too many

 

[ant_]

There's really not such a thing as too many. It's how you use them.

If you own 20 credit cards and don't carry a balance on them, you're fine.

The problem is the mindset most people have towards credit cards. Just don't treat credit cards as money you don't have. Only spend what you can pay back instantly.

 

[Depths of Orion]

I have 2 and I don't see a need for anymore. I have one primary card that I use for basically all my purchases and a second one in case of emergencies.

 

[Erv]

Can someone answer this question. What's the lowest credit score you can have to be eligible for a credit card?

 

[brandywine]

I have one, but never use it, it also has a ridiculous limit that I will never reach.

I am of the opinion that CC's are one of the major problems in this country, way too many loan out money on them and then can't pay it back. There's nothing wrong with them if people used them properly, but way too many see them as free money.

For any purchase (other than a house and maybe a car) it is better to simply use cash you already have, not cash that you hope to one day have. When I first got my CC I was dumb with it, and racked some debt(not nearly as much as many though) and after I paid it off I haven't touched it. I do have a car loan(which I regret signing now, but it isn't too bad) and I eagerly await paying it off so I am 100% debt free. And you don't need credit really for a mortgage, I knew a guy whose dad destroyed his credit by stealing his CC info and he was still able to get a decent mortgage rate.

So all in all, stay away from them if you can help it, going into debt is never a good thing, and getting good credit is not as necessary as they would like you to believe.

This is when a CC is good, but the vast majority don't use them like that.

What do you need credit for? To be able to take out more loans. There really isn't any good reason to build credit. I say this as someone with an 800 or so credit score who used a CC exclusively and took out a car loan back when I believed that credit was super important.

A credit card doesn't force anyone to be fiscally irresponsible. This idea that you can somehow only spend beyond your means with a credit card is ridiculous. It'a a piece of plastic just like a debit card, use it as you would a debit card.

Credit cards offer cash back and rewards. I pay at least 2% less for everything than anyone using a debit card and sometimes pay up to 15% less. It's foolish to not take advantage of that. Also:

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.

 

[Trey]

When you cannot pay one of them off, it is too many.

The correct answer.