How many credit cards is too many?

[enayes]

I currently have 4 credit cards:

Bank of America Cash Rewards
Chase Freedom
Capital One Quicksilver
Barclay Arrival (travel rewards)

I am 24 years old and got my first credit card in 2013. The only reason I have so many cards was to take advantage of signup bonuses. For example I got $200 cash back for my Chase Freedom card.

I have never missed a payment and have never paid any interest on any of my cards. For the most part I just pay them off as I go. I have heard conflicting stories regarding the number of credit cards one should own.

My father tells me that a car dealership may see that I have 4 cards all with a $5000 limit and turn me down for a loan because they see that as me being in 20,000 worth of debt.

I've also read that having multiple accounts in good standing does nothing but help your credit score and that's it's a good idea to keep your accounts open, as opposed to canceling a credit card when you get a new one.

What's the deal ISHers?

[Riley Martin]

2.

[hateraid]

1 is good enough for me

[32jazz]

I've heard some experts say that so many cards does have an effect on your debt -to -income ratio & some may figure in $20 k debt. Also depends on what percentage of the total $20 k you are utilizing (numbers approaching 50% is too much).


Depends on what your income is & if you have a low income your debt-to-income ratio may hurt you. Honestly though Fico scores /considerations are even hard for experts to figure out. They recently eased up on collections & forgive them if you pay them off instead of it remaining 7 years dragging down score & they are easing up on medical bills(as of August 2014-google "FICO score changes")



At your age I would doubt whether 4 is good. I only keep 2 Master/Visa . Rarely use one( maybe a $30ish dollar balance on 1 now) & the other for the hypothetical back up.


I think 2 is good.

[arkain]

If you pay them off on time and don't carry a large balance then it doesn't matter. In that case you're better off having that many credit cards because you show that you have in total like 20k credit line and you've never even used 20% of it on a continuous basis.

You keep 1, then even 1 large purchase and you're reaching 50% of your entire credit limit, which is bad even if you pay it off right away.

I keep 4 as well, 1 each of mastercard, visa, amex, discover, while really I only use my visa 90% of the time cause I get the best rewards there.

[SunsN07BookIt]

The main problem isn't keeping them, assuming you have a balance that still gives you a low debt-to-income ratio. The main problem is canceling them if you don't want them anymore. Cancelling a credit card hurts your credit, a little to none if you have excellent credit, more so if you have bad credit.

I still have my Chase Sapphire Preferred card from over 10 years ago, back when it was just Shell MasterCard.

[enayes]

The main problem isn't keeping them, assuming you have a balance that still gives you a low debt-to-income ratio. The main problem is canceling them if you don't want them anymore. Cancelling a credit card hurts your credit, a little to none if you have excellent credit, more so if you have bad credit.

I still have my Chase Sapphire Preferred card from over 10 years ago, back when it was just Shell MasterCard.

so, you think it's a good idea to hang onto credit cards even if you aren't using a particular one anymore?

[DwnShft2Xcelr8]

I have one and even that feels like too much. Credit cards give you the false sense of available finances when you can't even pay off the debt they accrue. Then they add up interest to keep you in debt. No thanks. Never doing that again.

[enayes]

I have one and even that feels like too much. Credit cards give you the false sense of available finances when you can't even pay off the debt they accrue. Then they add up interest to keep you in debt. No thanks. Never doing that again.

No offense but it sounds like you just weren't ready for a credit card.

If you use your credit card as if it was your debit card you can save a lot of money and earn rewards. I've never paid any interest on a card and I highly doubt I ever will.

[johndeeregreen]

I have one and even that feels like too much. Credit cards give you the false sense of available finances when you can't even pay off the debt they accrue. Then they add up interest to keep you in debt. No thanks. Never doing that again.

This type of attitude regarding credit cards always makes me chuckle; guys acting as if they are powerless over the card. As if having a piece of plastic makes it impossible to any longer live "merely" within one's means. Now, of course, credit card companies capitalize on this to line their pockets from the overwhelming amount of shmucks who can't restrain themselves from buying shit they can't afford.

[BigBoss]

Your dad's an idiot. Nobody cares how many credit cards you have as long as your credit score is good.

It doesn't mean as long as you're responsible, but look at it this way if you HAVE more credit cards at your disposal IF an emergency happens, you'll tend to spend more and put yourself in more debt had you have had say 2 cards.

Anyway, sounds like you're asking a question you already know the answer to.

[SunsN07BookIt]

so, you think it's a good idea to hang onto credit cards even if you aren't using a particular one anymore?

To tell you the truth, I don't know what the best answer for you is. Like I said, if you have excellent credit, things like loan apps, credit inquiries, credit card cancellations have little effect on your credit. I certainly wouldn't cancel more than one in a short period of time(like 2 or 3 in 6 months) though.

[DCL]

my fico's over 800 and i only have 2 credit cards.

[DwnShft2Xcelr8]

No offense but it sounds like you just weren't ready for a credit card.

If you use your credit card as if it was your debit card you can save a lot of money and earn rewards. I've never paid any interest on a card and I highly doubt I ever will.

Yup. I was 18 when I got my first credit card.
"I'm hungry.. Hmm.. I don't have cash... But I have a credit card!
My boys are talking about taking a road trip. Well, I don't have money to spend on that gas, but fukk it. I've got a credit card!
College textbooks too much & Financial Aid hasn't kicked in yet? Credit card time!"
That was me back then. I learned from those stupid mistakes. Now I only pay cash or use debit. I just wasn't taught how to use the card properly. It wasn't until I maxed out my card that my dad stepped in and said, "Da fuq, son?"

[KevinNYC]

Your dad's an idiot. Nobody cares how many credit cards you have as long as your credit score is good.

Not true.

The number 1 mistake listed on creditcards.com is having too many.

In addition to the temptation to run up debt on each card, they cite this

Having too many cards can also negatively impact both your credit score and your ability to borrow money, she says. On one hand, adding more cards helps your score by lowering your credit utilization ratio -- the amount of debt you carry compared to your available lines of credit. On the other hand, "If you have a lot of credit cards with high credit limits and you go for a mortgage, the lender will take into consideration, 'What if you ran those credit cards up? What would your debt-to-income ratio be?' "