acejacksingh wrote:Just wondering how many credit cards you guys have. I'm looking into getting a third, but don't really know if it's worth it.
It's really up to you to determine that. Worth is subjective no matter what the topic. You just have to weigh the potential gain in rewards versus managing another card and whatever other considerations matter to you. Telling you I have 12 cards doesn't mean that it's worth it to you --or even not worth it to you. All it tells you is that I have 12 cards.
acejacksingh wrote:I want another CC that will give a standard +1% on groceries/gas/living expenses with no Annual Fee. Thoughts?
Always consider the total cost/benefit versus just avoiding AF's. It sounds like you need to run the numbers to help you in your decision making.
tyrion wrote:Maybe a better question is how many active credit cards people have.
Not really. It's still up to the individual. What others do isn't relevant. Different people are able to manage different numbers of cards. Spend varies from person to person. How far one is willing to go to maximize rewards will vary. Some are willing to use a number of cards to maximize rewards. Some are not and prefer having fewer or even just one card that offers a simple cash back rewards structure. Some are willing to deal with points systems and maximizing point value. Some churn through cards to capitalize on sign on bonuses. There are plenty of other possible considerations as well. Simply asking others how many cards they have or use does not provide any useful information. However, asking why and how they came to that number of cards could be of benefit as one could look at whether or not the reasoning used is relevant.
A better question would be what the OP's major spend categories are and how many cards the OP can responsibly manage. Maximizing rewards should start with one's major spend categories since X% back will have a bigger impact on bigger spend amounts. The number of cards the OP can manage will also define a parameter in making recommendations for the OP.
mesaverde wrote:It's surprising that so many have responded 6+
mesaverde wrote:I would think that it's probably not necesary to have more than 2, and MAYBE have 3 credit cards at the most.
With two, you can use the 2nd card in case the first is temporarily cancelled or whatnot.
It's only surprising if you think your needs/wants are universal. People vary. It's up to each individual to determine how many cards are needed/wanted. I didn't simply select a number and look to fill slots. I reached my number for various reasons -- mostly due to maximizing rewards on spend but there were other considerations as well.
Jeff7 wrote:I'm wary of cash-back cards, as they have a habit of causing disproportionate spending increases, whether you might be aware of it or not.
Common assumption which certainly applies to many but depends on the individual. Rewards determine the card I use -- not whether to make the purchase in the first place. However, having credit (not the same thing as rewards) has a potential impact on my spend. One can monitor spend to determine the impact and respond accordingly versus relying on broad, sweeping generalizations.
nisiprius wrote:I'm completely baffled as to why anyone would need or want more than a very small number.
It's up to you to determine why you would need or want how many you have. It's not up to you to determine how many others need or want. Again, people vary. You can't assume that situations, budgets, spend, goals, priorities, preferences, etc for everyone else is identical to your own.
nisiprius wrote:I can't really speak to the idea of retaining cards and never using them on the theory that it affects your credit score in some desirable way, except to say that I think it's the tail wagging the dog--you should do what makes financial sense and let the credit score fall where it may, and I don't think it makes sense to hold never-used credit cards.
Again, subjective. Different people have different takes on the matter. Whether the tail is wagging the dog or not depends on what you consider the dog and tail to be. Definitely do what works for you but never assume that what works for you is the only option that works for everyone. There are known factors (i.e. not simply theories as the effects are demonstrable) that affect credit scoring and some choose to do what they can to maximize. What makes financial sense and optimizing one's credit aren't necessarily mutually exclusive concepts despite how you've presented them. An individual could certainly focus on one to the detriment of the other but, again, one should monitor and act accordingly instead of relying on a broad, sweeping generalization.