How many credit cards do you have?

I have none and never have had one. Only debit cards although I do have two bank accounts in case one card doesn't work or is stolen. .

The ideal number, no clue, probably depends on your circumstances.

How do you rent a car or stay in a hotel r1? (or are you really young and don't do that yet?)

R2 never rented a car and hotel bookings are no problem with a debit card. I *am* European though so credit cards are less of a thing here.

Too achieve a high score, the number varies depending on which model is involved. However, the “ideal” number of active, though mostly underutilized, general purpose bank credit cards is 2 1/2, and the number of similarly used store brand credit lines is roughly 1 1/3 (both numbers are averages across models, obviously).

Having a recently punctiliously paid off installment loan helps too.

I wouldn't want to use a debit card that is linked to a checking or savings account for purchases. I only use my debit card at ATMs otherwise I use a credit card or a store credit card if it means extra savings.

10 cards

Mm, 11 cards like me

I have 2: a platinum AMEX and a Cap One Visa. I use the AMEX as my primary card and the Visa where AMEX isn't accepted (like Costco).

From Credit Karma, having more cards open is better, as long as your utilization is low. Having a mortgage and/or car loan helps too. I have about 8 cards open, some I use for just one bill so they get used. I pay all off monthly. My utilization hovers around 2-4%.

That never seems fair. Why is a person who had to take out a loan to buy a car or house considered a better credit risk than someone who just has a ton of money and could buy two houses for cash?

Why do you get penalized for closing old cards?

I have one that gives me rewards for an airline I no longer fly. I've had it so long though. I'd like to close it (there's no fee.) I take it out like one day every few months and buy cheap stuff and then put it away.

Can you avoid the credit hit if you close an old one?

R10 Because people who lend money want to make money from you. It's the people who they can make money from who have the best credit scores. Just bear that in mind and don't take credit scores too seriously (I don't).

[quote]I have about 8 cards open, some I use for just one bill so they get used. I pay all off monthly. My utilization hovers around 2-4%.

This is me, exactly. 8 cards, with autopay for HBO on one, Spotify on another, etc. so they get some use.

Utilization is an important part of credit score. Under 25% is good, under 5% is great.

Only one.

I also use PayPal as a quasi-credit card.

My goal in early adulthood was to carry all the major credit cards whose logos appeared on the store window or near the cash register of merchants..

Mission accomplished.

I had 15 at one point, most acquired to take advantage of miles/rewards programs and sign-ups bonuses, some held onto because they were my oldest cards. By the time I moved a few years I had cut the number to the 4 most useful. Over past decade and more the credit score has stayed in the 830s to 840s, dropping briefly to the low end (2 months as I recall) after dropping a number of cards in short order -- it had a visible impact, but a minor blip, and the effect was short-lived. (Like many i overestimated the negative impact of cancelling cards, but my credit was excellent beforehand.)

Each to their own but I’ve never understood why someone good with money (i.e you can control your spending and can pay off a credit card every month) doesn’t use a credit card. You can get airmiles or other rewards for free and in a lot of countries paying with a credit card automatically insures the purchase up to a certain amount if the product/item/service you booked is faulty or mis-sold.

I have 2, with a total of $2800 credit. I only use one occasionally for gas or small purchases. I also have a Gap card.

It is not so much about the number of credit cards, but the total amount of credit bestowed versus the amount borrow/used per month. More credit cards just means you have more total credit.

When I went to buy some postage from stamps dot com yesterday (Dec 23), it was declined with a cryptic message so I called to get it fixed. The stamps people said it was an issue with the card, so hubby (it is his card register there for purchases) called them and the bank told him there'd been a breach at one of the major retailers and they were cutting their entire customer roster off from purchases to prevent fraud... the day before Christmas Eve. They wouldn't divulge what retailer it was (I have an idea due to that this card is used for specific purchases), but it blew my mind that the bank would just deactivate their customers' cards without notice. The agent said they'd been swamped for days fixing the problem, and the costs of issuing new cards was running into the $millions of dollars... of little solace to folks who were shopping and had their cards denied.

The moral of the story is you need more than one credit card, and it's best if they're from different banks,

We did this not that long ago.

Seven cards, and I use three. The others, with about $75k in credit, are for fast getaways if/when my bank accounts are frozen.

[quote]That never seems fair. Why is a person who had to take out a loan to buy a car or house considered a better credit risk than someone who just has a ton of money and could buy two houses for cash?

If you have enough cash to buy two houses outright, there’s really no need for credit.

[quote]Why do you get penalized for closing old cards?

Having a line of credit open and in good standing over a long period of time is considered a positive for your credit score. Your score will drop a bit if you close that card, but it’s probably not too significant. But really, if that card doesn’t have any fees, there’s no disadvantage to just keeping it open and using it occasionally.

I have 3 for personal expenses (Mastercard, Discover & Amex), and an Amex for an LLC that manages a couple of rental properties I own.

3 for me, one with a large credit limit which I save for emergencies

Counting biz cards, 10. Use 3. Pay all off each month - unless Home Depot has given me no interest, a same as cash offer on a large purchase. Credit rating vacillates between 840 & 850. Learned the hard way. Over used credit in my 20s.

One and I pay off the balance every month when billed.

How often to they recalculate your fico score? Monthly or is it an ongoing thing?

Debit cards don't give you nearly the amount of protection that most credit cards do. Most cc's will immediately remove fraudulently charges if you report them.

Debit cards, the money is already deducted out of your account and you'll have to fight to get it back.

use a credit card but treat it like. debit card (pay it off every month)

What's the difference between a credit card and a debit card?

I have an 835 credit score, three credit cards that I pay off every month and have for many years, VISA, Mastercard and Discover, no mortgage on the home that was new in 2005 that I paid cash for and no car loans in probably 20 years. Now your are probably thinking sure this guy is rich, no I am not, I am retired, live off only my social security check, no pension. I do have a savings, and a brokerage account but I am worth way way under a million house included, but I never touch any of that and don't expect to. I live frugally and I don't worry about money.

One. For those times when only a CC can be used. And those occasions are increasingly few and far between.

I have eight also, and like some others, have monthly bills charged to various accounts: cell phone bill on one, Netflix on another, NPR station contribution on another, etc. I have them set up on autopay from a checking account. The ones I use for purchases are a Mastercard which earns miles and includes Admirals Club membership and a VISA that also earns miles. I use the VISA at Costco and the Mastercard is ties to ApplePay. I pay them off every month.

At one time, I had over forty cards. A bunch of department store and gas station cards before they started branding all of them with VISA or Mastercard. The Shell Oil card became a Mastercard, BP turned into a VISA, and so on. It was absurd how many cards I had. I purged about twenty years ago and closed dozens of accounts. Oh, I keep one card with a very low credit limit and use it only for online shopping if I haven't used that site before. This strategy paid off twice, most recently when I bought a novelty item I saw advertised on Instagram. Two days later, the card issuer texted about unusual activity. Somebody was trying to use that account at an Apple Store in Palm Beach.

I have three cards. One for business and two for personal. The personal cards are used to get airline and hotel points.

Zero. I do have two debit cards that can used with the VISA network, one from each of my banks.

My last credit card was an American Express I had in my college years, which I failed to pay off monthly enough times that they cancelled the card on me. That was... 30 years ago? Every time I think hmmm, maybe I should have one, I get the heebie-jeebies.

R36, what is your credit score?

What’s a credit score? How do I check it?

Eleven, though only use three or four regularly. Always pay bills in full each month.

[quote] How often to they recalculate your fico score?

FICO scores (and there are roughly 20 or more depending on the type of creditor involved) are calculated at the minimum once a month. But depending on how many creditors you have they may update much more often. Every time a creditor sends something to the credit reporting agencies your score is updated. Every time someone does a hard check on your score it's recalculated.

[quote] What's the difference between a credit card and a debit card?

A credit card uses money provided by the credit card company, which you're expected to repay. A debit card uses your money, straight out of your bank account. Credit cards offer far more protection than debit cards. If your credit card is stolen or your account number used without your consent the credit card company will not hold you responsible (in most instances) and your account is credited immediately. Some credit card companies do have a minimum charge they'll assess you if you don't notify them in a certain amount of time of any misuse or theft of your card. It's generally a maximum of $50.00 you're responsible for. With debit cards It can take weeks to get your money returned to your account, depending on the circumstances. NEVER use a debit card for making online purchases!

What’s a credit score? How do I check it?

You can use one of the free online credit score sites, but just know that the scores they provide are not current. They may be a month or more old. But at least you'll get some idea where you stand. Here's the link for Credit Karma.

My husband and I use an Amex gold card for regular purchases--insane points that don't expire. After that, I have an American Airlines mastercard, IHG Hotels mastercard, Hilton Visa, Best Buy mastercard, Amex Macy's card, Amex Blue card, Capitol One Debit card and Venture mastercard. I pay my balances off at the end of the month and have a 850 fico score.

2 cards. $15,500 total limit. I only use them for major purchases and then pay off each month. I don’t know why anyone needs more than two cards unless you are juggling debt.

The airline cards you need since some airlines miles expire in a year and a half without activity. I had the United and American ones to keep my miles up to date. (once every few months I use the American one to get fast food or some small purchase. (United I used up all my miles and cancelled the card.

Delta is the best though since their miles don't expire.

3 cards is enough to maintain a high credit score. More than 3 seems unnecessary IMHO.

The key is paying off all your cards 100% each month. I have preached this before and I'll preach it again. Pay your credit card bills at least a day before the statement(s) drop so that the amount of your bill reported to the reporting agencies is zero. That will also make your debt to credit ratio zero and a major percentage of your FICO score is based on that ratio. They love to see you being given loads of credit, but not using it. If you can't pay the bill before the statement drops you should make sure if at all possible you never use more than 30% of your available credit. It's after that point your FICO score will begin to suffer.

Personally I use my 3 personal cards as follows.

Mastercard: All household expenses (utilities, repairs, etc)

Discover: Groceries

AMEX: All personal expenses such as dining out, toiletries, etc.

[quote]The airline cards you need since some airlines miles expire in a year and a half without activity. I had the United and American ones to keep my miles up to date. (once every few months I use the American one to get fast food or some small purchase. (United I used up all my miles and cancelled the card.

Those cards also include a free checked bag, and priority boarding, and the United one includes primary rental car insurance… all important benefits if you travel frequently.

Having too many credit cards, even if not used, can hurt your credit score by making you appear potentially more risky to lenders.

Never, I repeat NEVER close older credit card accounts, even if you've stopped using them. That will reduce your available credit and will also reduce your overall average credit age. Having long term credit availability helps your FICO score.

5 - you can’t get close to 800 credit score with fewer. Put a little on each one each month and pay it off. Discover actually threatened to close my card because I wasn’t using it so I bought something for a few dollars and make them send me paper statements every month which is costing them more than I owe in interest. Don’t fuck with me.

[quote] 5 - you can’t get close to 800 credit score with fewer

WRONG! I have 3 and my FICO score has been between 838 and 845 for years.

[quote] 5 - you can’t get close to 800 credit score with fewer...

False!

I have two credit cards that are paid off every month. One that has grown to a limit of $30,000. I have had that card since I was a college student in the 1960's.

FICO remains between 830 and 835

I was just writing about long term credit in not closing cards when your message popped up, R48. I'm a bit trapped by that with a Delta Amex from 1986, though last year the covid-era monthly dining credits gave me more cashback than the annual fee.

Two of my cards are rare ones from credit unions that use PIN over signature abroad, with no annual fee on either; I really should have the high credit limit on one reduced. My Amexes are all ancient as mentioned.

Two of my Bank of America cards were "product changed" (converted to a different card waiving any sign up bonus) to cashback ones - I've done well with getting back 3% on almost all online transactions with one of them.

My strong advice is to have more than one card. Cards fail for both physical (card damage) and technical reasons. If you're interested in keeping up with the latest offers, as well as hearing about what works to claim a card benefit, your best bet is to give Flyertalk a look - those guys cover the smallest details in their discussions!

Last I saw, my score was 820, as I've never had any sort of auto loan or mortgage history.

Three, I had four but canceled the Amex because I couldn't see paying fees. One is linked to Amazon and I use it for almost everything and then use the points to get free stuff from Amazon. I just brought coffee, ear plugs and masks for free. The other I carry in case there is a problem with the Amazon card. I use it occasionally anyway cause companies get pissed if I never use their card. (I had a company threaten to withdraw my card since I hadn't used it in years.) It's tied to airline miles but I'm not flying at the moment. I've gotten good deals years ago on airline miles, several trips to SF from NYC.

The third is the credit card version of a Sears store card I got in hs in the 70s. They upgraded it at some point. It's kept at home in case my wallet is stolen. I use it to make charitable contributions and it sends me a statement in the mail which I save for tax deductions.

During the great crash at the end of the Obama administration all the cards upped their rates including the "Sears" card. I called and told them I always paid the full amount on all cards and had had some version of this card since high-school in the seventies. The lady basically gasped and said "Well we will reduce the rates in that case."

I have one credit card and one debit card. I use the debit card as backup when my credit card is compromised which seems to happen every couple of years.

{quote]One is linked to Amazon and I use it for almost everything and then use the points to get free stuff from Amazon.

The Amazon card is a good deal. I use it just for Amazon purchases. It earns 5% back on Amazon, and the credits get automatically applied to my Amazon account and taken off my next order. Lots of $$ savings and no fee.

[quote] make them send me paper statements every month which is costing them more than I owe in interest. Don’t fuck with me.

don't fuck with R49

R46, does the timing really matter that much? I pay off my balances each month but when I look on credit karma I can see my current balances. I always thought it depended on that timing that the credit card company sends the data to the reporting agency. But since I do pay my balances off my utilization is never that high.

Agreed, R48. I have a card from college that is my oldest one (30 years) and I keep it open just for the age. I do maintain one airline card that has an annual fee, but generally I save enough in waived bag fees to make it worthwhile.

I’ve only been in the US for 6 years, so the fastest way I could get to the 800 club was many cards being paid off every month. I have $65k in available credit with 2% utilization. Americans are bad with money. I don’t need to wait 30 plus years to catch up.

[quote] I had four but canceled the Amex

That's really no big deal because AMEX is not a credit card. Many people don't understand that. AMEX does not offer you credit terms to pay off your balance. A Gold or above AMEX would offer you a line of credit to borrow from if need be, but you still have to pay your charges in full every month. They do have a type of AMEX card that operates just like a typical credit card and there is no yearly fee. One of my grand nephews has one.

AMEX is mostly credit now, only fossils use charge cards.

[quote] does the timing really matter that much?

It does if your balance every month (even if you pay it off in full) is higher. The reporting agencies methods are intricate. So, it's always better to carry a zero balance (or make it look to the reporting agencies that you do).

I typically charge $2,500 a month my charge card. I have charged $10,000 in one month.

I pay it off every month by the bank automatically pulling whatever is due out of a checking account.

My FICO varies from 830 to 835.

FICO is so weird, R61.

Stop asking me for my credit card # you thieving ass African bitch.

Never close your oldest credit line. Even if you don’t like the card. It’s ridiculous that we have to operate like this to maintain a good credit score. I open new cards about every 2 years when I see a good deal. Chase was giving back 100,000 airmiles until recently if you spent $4k in 3 months. I see they’ve dropped that offer to 60,000 miles now. That was a good deal.

This is the trap that they want you to fall in: people never close accounts and keep opening more and more new accounts. I begrudgingly have three but I genuinely don’t need three.

R65 Exactly. I'm one of the above posters with eight. I opened all of them for specific offers – free savings and checking accounts, free notary services, free cashier's checks, if I also got their credit card; free SiriusXM if I opened a specific credit card; top tier frequent flier status for another (free checked bags, automatic upgrades if available, lounge access, etc.) My oldest card has the smallest credit limit and I use it only for internet purchases on sites I have not bought from before. I have had to ask Capital One to reduce the credit limit on that card many, many times. I do not need eight, but each provides a worthwhile benefit just for having it open.

R61, so are you saying to pay off balances like the next day after purchase? I never have a completely zero balance since my due dates are all staggered and are not synced to the reporting timeline (whatever that may be). But since I'm paying the balances off my utilization does not vary greatly from month to month. My scores are 827 and 829 so I'm not going to worry too much.

Just pay the balances by the due dates each month. In most circumstances it doesn't matter, unless you have a large balance at the time you're applying fur credit showing a high utilization ratio.

I have two cards with 25K limits that I rarely use (sock drawered, as the expression goes) - one I plan to cancel by the end of next year, and the other I'll have the credit halved soon.

My newest one has the best ongoing offers: the Wells Fargo Propel Amex, which was withdrawn almost as soon as it introduced. It would be perfect if it were a visa/mc for worldwide acceptance. Next would be the Bank of America cashback card that earns me 3.75% on almost all internet purchases; drawback there is that it has full 3% foreign transaction fee, so can't use it overseas at restaurants that don't take Amex.

[quote] so are you saying to pay off balances like the next day after purchase?

No, just pay your full balance (or most of it), at the latest, the day before the monthly statement is posted. The CC company reports the balance on your statement to the reporting agencies. They do not report your actual activity during the month. If you pay it before the statement is posted the statement balance reported is zero (or very small). That helps your FICO score greatly. The debt to credit ratio makes up 1/3 of your FICO score. Payment history makes up another 1/3, and then length of credit history, credit mix (the variety of credit accounts you have), and new accounts make up the rest.

[quote] I have two cards with 25K limits that I rarely use (sock drawered, as the expression goes) - one I plan to cancel by the end of next year, and the other I'll have the credit halved soon.

And watch your FICO score drop hard and fast after you do that.

FICO essentially scores you the same way you’d evaluate someone asking you for a short term loan.

1. Has no one else ever given the person a loan before?

OR

2. Are they already in debt nearly up to their eyeballs, consistently paying the minimum they can get away with to everyone in town (and now they want to borrow money from you)?

OR

3. Have they only borrowed a fraction of what others were willing to lend them and repayed all those loans much sooner than they promised?

Wouldn't affect my utilization enough to make a difference, R70.

It's not utilization that would be affected. It's the amount and length of credit that will be affected. Unless you have proven sources of credit in very large amounts removing $50,000.00 from your available credit, especially that much credit that you've had for a long time, will definitely affect you.

It's 37K not 50 - my problem is that I have too much total available. Those cards are mid-range in age for me, so the average age of credit would remain the same; I'm only thinking of closing one, the other card would remain. Also, unless I misunderstand, cards remain on the credit profile for seven (or ten?) years from closure.

I'm trying to recall the highest balance I've ever had on a card in a specific billing cycle (aside from putting the 5K dealer max on one at a car purchase)? Gonna say $3500.

20 years ago I had way too many credit cards, dept. store cards, etc., and got into too much debt. Cancelled nearly all of them and used one of those credit consolidation firms to pay the debt off. Now I have a bank debit/credit Visa card that I use most of all, a MasterCard for other occasional purchases, and Paypal. I pay the MasterCard and Paypal off in full twice a month on paydays. I have a credit score of 813 so I must be doing something right!

R74, I think having 'too much total' would only help your utilization.

I think you are thinking of hard inquiries - which can stay on for 2 years. I can't say for sure but it seems odd that if you close a card they would "count" it for 7 years afterward. Credit Karma shows me closed accounts - as closed. But I'm not an expert.

It seems that if you have a lot of credit available, and you apply for another card, they fear you might have had a recent crisis and are going to screw them with bankruptcy. Something like that.

Accounts are closed, but the accounts themselves remain for purposes such as average age.

If you run up your cards before you die, do they just write off the balance?

[quote]If you run up your cards before you die, do they just write off the balance?

It depends. As unsecured debt, credit card companies are among the last to be paid out. Once the estate is settled (real property sold, property liquidated, etc.) if there is any money left over, it eventually goes to lenders like credit card issuers. But people who have large credit card balances at death rarely have money left over to pay them out.

This is why, if you are feeble and have unsecured debts, make sure your insurance is paid up so your beneficiaries get something. You can leave $10M to your niece in your will, but there has to be $10M left from your estate after debts are settled to make good on the inheritance.

If you are married and die with credit card debt, you gift your surviving spouse the job of paying this debt back if you live in CA or the other community property states.

The credit card debt left by a deceased would have to be quite large for the company to actually go after anyone or the estate for payment. I believe the vast majority of these debts are simply written off.

It's like doctor's bills for someone who has died. I have a close friend whose husband died a few months ago. She called me in November to tell me about several bills she'd received for various medical providers. I asked her if her name was on any of the bills and she said no, they were all to him and the envelopes were addressed to him as well. I told her to just write "DECEASED" on all of the bills and mail them back. She did and hasn't heard another thing from any of them. They know they don't have a chance at getting her to pay the bills because she's not legally required to pay them. They got their Medicare payments and the payments from his Medigap insurance, and that's all they're going to get.