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It’s kind of a racket in that your credit score is partly made up by your utilization % of your total available credit, and your credit score also takes a temporary hit when you close an account. If you don’t use your cards, after a while it goes “dormant” and doesn’t count as available credit.
If you are a Dave Ramsey follower, one credit card is too many. If you are instead a Clark Howard follower, he recommends setting reminders to use each card once a year to keep them all active.
A lot has to do with your discipline—if you are carrying a balance on any cards, you are the loser in this scenario. If you never carry a balance and don’t overspend because of how easy credit cards make it to do so, then you are probably OK, and the number of cards isn’t very important except perhaps for the burden of keeping them all active and the risk exposure of having one of them compromised and needing to notice and report the problem in time to get reimbursed. However, some lenders might look at it differently, so if you get denied for a loan or mortgage based on “too many open revolving accounts”, then you might want to close a couple.
If you have annual fee cards then there would be a different equation as to whether they are each worth the fee for whatever benefits they provide.
I also have too many credit cards, but I’m trying to maximize perks and discounts. I am disciplined and don’t overspend, and pay back in full every month. In fact, I’d probably spend the same amount if I was debit card only.
1) Most spend goes on Bonvoy Brilliant Amex (to maintain Platinum Elite status for upgrades, since I don’t travel much for work anymore)
2) Amazon & Whole Foods purchases go on Amazon Prime Business Amex (for 5% discount)
3) Costco and gas purchases go on Costco Visa (Executive 2% Costco reward, plus the Visa reward)
4) Alaska Air flights go on Alaska Visa (free checked bag, free companion fare in 1st yr after min spend, bonus miles, and cheap $99 companion fare each yr going forward)
Plus over a dozen other cards that I don’t actively use anymore.
I have around 20 or so, I cycle through them for the sign-up bonuses and other benefits. No such thing as "too many" as long as you're smart about it
Cycle through them? Assuming that means you're closing accounts as often as you're opening them? Doesn't that kill your credit?
Corporate AMEX
Discover
Target credit card
Ahhh I see. Honestly, mostly everyone. I live in a major city and have run into 1 restaurant that doesn’t accept it in 6 years.
Think I have about 8 left but I only actively use 1. I opened a lot of CCs before for their 0% apr balance transfer promotions when I was in debt
I used this same method and at max had around 25 credit cards (only 1-3 with a balance at any given time). Tons of cards offer this, just have to find the best deals (18 months at 0% with a 3% balance transfer fee is a baseline). Ultimately you're paying a 2% rate vs 5-7% for Stafford loans. Just have to be super organized and diligent in making payments. Also, be aware of the risk inherent with the approach. If something catastrophic happens and you miss payments rates jump to 20%+.
1
Corporate Amex
Personal Amex
Personal Visa
For the folks saying “there’s no such thing as too many” — that’s only true if you’re positive you won’t need to apply for credit of any kind in the near term. A completely valid (and reasonably common) reason for denial, or being bumped to a lower year / less favorable terms, is too much revolving credit. This is particularly true if a lot of those credit cards were opened recently.
This isn’t usually a huge factor in your credit score or a company’s underwriting criteria, but it is absolutely a factor.
P2 yeah I have a “wallet full of cards” and absolutely no problem qualifying for a conventional home loan sub 3.8% and auto loans sub 3%. Never had a lender mention it Maybe you’ve been burned, and your personal experience is valid, but a published source would probs do more for me. 🤷🏼♂️
14 and don’t think there’s really a too many if you understand the implications
I was always after credit cards until I started following Dave Ramsay and listening to Warren Buffett. I started to realize this whole credit card world is a sham. It took some courage but I cancelled all my credit cards except 1 for emergency. I had about 12 credit cards before. Now I pay with cash until absolutely required to pay with card.
The average human spends more for sure. However, again, if you have a real budget and self control, there is no difference to paying with a credit card or your debit card, with the exception of a funds transfer once a month to pay it all off.
Lol @everyone saying " I have 26846 cards... Oh but im disciplined!!"
PD1 oh you rude
3 AmEx, 2 Discover, 2BoA, 2 Chase. I’ve never paid a single cent in interest or late fees, pick only no annual fee cards, and have enjoyed several thousand dollars of free travel/cash back. If you can’t fathom treating a credit card like a debit card you shouldn’t get one. Pay in full every month, enjoy the additional security + perks. Simple. Just hit $100k in available credit.
Not including corporate card, 8. 3 essentially sit in the drawer and get used once a year to stay active (unless there are bonus promotions), regular rotation uses 4, SPG card gets used whenever I’m traveling for leisure and staying at a Marriott/SPG.
As long as you pay your balance every month and use your cards strategically (i.e. maximize category bonuses and not use cards that optimize any category), there’s no such thing as too many. You’ll also want to keep in mind that card issuers look at how many cards you have and when you got them so be mindful of that when you want to apply for new ones
I have 5 but I only use the chase trifecta
I have 6 with the corporate cards but only use 3 typically (2 personal plus corporate). Special situation because I have a couple of foreign accounts that come with credit cards. It has been helpful to have variety (Amex vs visa) and I’m keeping a couple accounts open for credit score reasons. Otherwise 2 personal is definitely enough for me.
I have 4 but use 3, 1 is daily spend and 2 get used for specific things
2: One corporate, one personal. More than 3.
Corporate AMEX
Personal AMEX gold card (my main personal)
Uber VISA (when AMEX isn’t accepted)
I have 8 personal cards and use 7 of them
I have 9, I regularly use 2-5/quarter depending on the rewards rotation/what I’m purchasing. My credit score is in the upper 770s, and I usually carry a 1-3% utilization lately (paid off my wedding and masters tuition with credit few months back, else I would always have a 0-.05% utilization). My go to personal cards are Chase and sometimes discover, Amex Blue for groceries
If you have the financial discipline and a strong reason for each card then why not. I’ll look into an Amazon CC later this year, but I likely won’t get another CC after that unless I get the black card invite. For my lifestyle, there’s no need for another.