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Old 02-09-2013, 09:22 AM   #16
elgerber
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Quote:
Originally Posted by DawnM View Post
We normally don't have many, but this year the deals for opening them have been good, so we have opened 5 more.

It has bitten us a bit as we are refinancing. Our credit is still right at about 800 but since we opened so many, they are asking for a written reason for so many credit cards opened in 2012 or some such stupid thing.

I told them it was ridiculous as our credit is excellent, but they said anytime a credit score is flagged or something a written explanation is necessary.

Dawn
I work in mortgage and this is true. It's asked of everybody, regardless of credit score, to explain all new accounts/inquiries. If your credit is 800 they won't care, they just have to document the file. I see it all the time, letters that state "opened a new card to get bonus miles" etc, if I were to refi my own file, I'd have the same letters in mine.
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Old 02-09-2013, 09:23 AM   #17
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I heard a financial expert say too much credit can be bad because you have all that credit at your disposal and can end up in a financial mess say if you went and maxed out all cards. But I would say that's were responsibility comes in and if there was a risk cc companies than wouldn't give cards to those that already have them.
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Old 02-09-2013, 11:23 PM   #18
*Seanaci*
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DH and I have 1. Our credit is good...but on his income alone (I'm a SAHM) we can't afford more than 1 CC. Plus, it's through our Credit Union and we have a really low interest rate.

Plus we just got done going through debt settlement on 2 CC's I brought into our relationship and 1 that he brought.
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Old 02-10-2013, 08:32 AM   #19
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With 11 credit cards, your credit is not as 'excellent' as you think it is.. You're hurting your credit score by having that many cards. Why do you think you need so many?
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Old 02-10-2013, 08:54 AM   #20
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Originally Posted by *Seanaci* View Post
DH and I have 1. Our credit is good...but on his income alone (I'm a SAHM) we can't afford more than 1 CC. Plus, it's through our Credit Union and we have a really low interest rate.

Plus we just got done going through debt settlement on 2 CC's I brought into our relationship and 1 that he brought.
I think some people are confusing how much credit card DEBT they have vs how many credit cards- otherwise the statement above makes no sense. With the exception of certain credit cards which come with a high annual fee (Amex platinum, ritz Carlton cards are both $395) there's nothing to 'afford' in terms of credit cards. You're talking about how much spending you can afford.

OP, Collecting points/miles/cash back is a a sort of hobby of mine, so I'll tell you that we have more credit cards then you do, and we have around the same credit score. However, we have no credit card DEBT.

We've never had an issue getting credit (although as DAwn pointed out, it is a little bit f extra documetation if you are refinancing or buying a property) and my credit score has gone UP since I started this game.

It takes discipline and organization, but one can reap hundreds of dollars of value through credit cards if you use them correctly. If you're interested, the websites www.thepointsguy.com and flyertalk.com are great resources.
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Old 02-10-2013, 09:00 AM   #21
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There is no number that is too many. For some people, one is too many.

When a person opens many in a short period of time, that could indicate you see a change in your financial position and might need that credit to live on. That is a red flag, as is shown by Dawn.
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Old 02-10-2013, 09:09 AM   #22
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I would say it is good to have at least two credit cards of the Master/Visa variety. It is not unheard of for a merchant or hotel to over-authorize an amount and the next time you want to use that credit card, it shows up as credit limit exceeded.

If they ask ridiculous questions about why you have so many credit cards, I say it is okay to give a ridiculous answer like getting another chunk of reward points.

I do not have a foreseeable need for a loan, but if they ask about credit cards, I would ask if they needed to have one or more of them closed.

Over the years I have cancelled credit cards because they all of a sudden adopted an annual fee, or when newer credit cards came along with more rewards. This was one at a time, not several in quick succession.

One credit card I had some years back allowed me to take out cash advances and not pay any transaction fee or interest, provided I paid it all back within a month. They changed that policy after a few years.
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Old 02-10-2013, 09:33 AM   #23
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DawnM the only time having multiple cc's (with no balance carried) becomes an issue is if you need to refi,buy a car,etc in the next few months...so best not to open any if you're planning to do that....otherwise, not much impact on an already good score overall....
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Old 02-10-2013, 09:39 AM   #24
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Quote:
Originally Posted by rockawaybeachgirl View Post
I think some people are confusing how much credit card DEBT they have vs how many credit cards- otherwise the statement above makes no sense. there's nothing to 'afford' in terms of credit cards. You're talking about how much spending you can afford.
this is correct. Having a credit card,or twenty has nothing to do with 'affording' things....But as another pp said, there is no correct number, for some people, one card is too many. I know of people (google it) who collect multiple cards monthly,for various purposes- Or some,like some of us here, who have mutliple cards b/c doing so provides multiple rewards for doing so.... but as I said before, it has to be done CAREFULLY,and with GOOD RECORDS,and with NO DEBT carried,in order to work at all.
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Old 02-10-2013, 11:56 AM   #25
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With 11 credit cards, your credit is not as 'excellent' as you think it is.. You're hurting your credit score by having that many cards. Why do you think you need so many?
Never let facts get in the way of the DIS assumption

I know I have more then 11. Credit score well up there in the 800 plus area.


So I don't know how you know someone else's credit score.
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Old 02-10-2013, 01:31 PM   #26
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It also depends on if you are going to be trying to get a loan for anything (car, house, re-fi) in the near future. If not, it probably doesn't really matter.

I don't even know how many credit cards DH and I have.
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Old 02-10-2013, 01:57 PM   #27
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We had not planned to refi, but with the rates dropping so low we decided it was worth it.

Dawn

Quote:
Originally Posted by hsmamato2 View Post
DawnM the only time having multiple cc's (with no balance carried) becomes an issue is if you need to refi,buy a car,etc in the next few months...so best not to open any if you're planning to do that....otherwise, not much impact on an already good score overall....
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Old 02-10-2013, 02:09 PM   #28
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I have 4 major, 3 store.

As far as the major ones go, I have one I use on a daily basis because it has the best rewards, and one that I use for international travel and that I know won't cancel me on a whim (credit union card with no extra fees). The other two I got because of awesome signup bonuses (airline cards) - these have annual fees, but I get benefits each year at least equal to the fees even without much use on them, so I am keeping them for now. But I will cancel them as soon as I am not getting a benefit equal to the fee.

The store cards I only have because I get significant benefits from having them, e.g. Target for the 5% discount.

I keep track of every item I charge and pay off all of my credit cards every month - so having all of these cards in my wallet presents absolutely no "temptation" for me. Because of that, and the fact that I have a great credit score (that I monitor regularly), I see no problem having all of them. I may even open another one or two if some more fabulous signup bonuses come along. Of course, if you are challenged by credit, this it NOT the philosophy for you.
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Old 02-10-2013, 03:40 PM   #29
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We must be in the minority. We have one Discover card and one MasterCard. No store cards, no Disney Rewards card. We rarely carry a balance, and mostly use them for recurring charges like Netflix and EZ Pass.
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Old 02-10-2013, 03:48 PM   #30
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I would not close any accounts because that can shorten your overall length of credit history. I would just cease to use them and put them away. Make sure you continue to monitor them and make sure they aren't used by anyone else!
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