Why have multiple cards from the same issuer?

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Smerri
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Why have multiple cards from the same issuer?

Postby Smerri » Sun Nov 28, 2010 10:05 am

I have 3 cards. American Express Premier Rewards Gold Card which I use 99% of the time, Bank of America Visa which I use 1% of the time, and my Discover which I never use. I was thinking of applying for the Costco True Earnings from American Express as it acts as my membership card as well but I can't think of a time where I would use that over my Gold Card. I use the Gold to earn as many points possible so I can't justify getting another American Express card in my head.

I was just curious why some may have a few cards from American Express, or a few from Visa. Is it that you are using different cards at certain times for the best cash back bonus'? Also, say I did get the Costco Card, would that blend with my Gold card on the line item on the credit report since they are both American Express, or would they be two separate items?


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Mogul of Pineapples
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Postby Mogul of Pineapples » Sun Nov 28, 2010 11:19 pm

Smerri wrote:I was just curious why some may have a few cards from American Express, or a few from Visa.


Visa and MasterCard are payment networks and don't issue cards. When there is a Visa logo it means that the tranasction is processed over the Visa payment network but that's all Visa has to do with it, everything else is the responsibility of Bank of America or whoever issued the card. That's means if you have multiple Visas or MasterCards, the only thing the cards have in common is where you can use them and other than that they are completely different credit cards.

Amex issues most of their cards but they also operate as a processing network to a lesser degree. For example the Asiana Amex from B of A is truly a B of A card. The only thing Amex has to do with it is processing the transactions over their network when the card is used for a purchase.

Now in your example of getting a Costco and a Gold, both would show up as completely seperate items on your credit report. Really the payment network of the card is irrevelent for payment networks.

Did I explain this in a way that makes sense?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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Postby ligio » Mon Nov 29, 2010 2:21 am

I have multiple cards from multiple credit card co's. 2 from Amex and 2 from Citi. To get the best rewards it takes multiple credit cards. That way you got something in your back pocket for different types of spending

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Postby infomaniac » Mon Nov 29, 2010 3:58 pm

The negative from having multiple credit cards from the same bank is it may result in reduced credit limits. Each bank allocates a set amount of risk to a given cardholder. When there are several lines of credit the limits their limits may be reduced in order to keep the total credit extended below a certain threshold.

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Postby Smerri » Wed Dec 01, 2010 10:45 am

Mogul of Pineapples wrote:Visa and MasterCard are payment networks and don't issue cards. When there is a Visa logo it means that the tranasction is processed over the Visa payment network but that's all Visa has to do with it, everything else is the responsibility of Bank of America or whoever issued the card. That's means if you have multiple Visas or MasterCards, the only thing the cards have in common is where you can use them and other than that they are completely different credit cards.

Amex issues most of their cards but they also operate as a processing network to a lesser degree. For example the Asiana Amex from B of A is truly a B of A card. The only thing Amex has to do with it is processing the transactions over their network when the card is used for a purchase.

Now in your example of getting a Costco and a Gold, both would show up as completely seperate items on your credit report. Really the payment network of the card is irrevelent for payment networks.

Did I explain this in a way that makes sense?


Yeah actually that does narrow it down quite a bit.

The only part still open really a personal preference question, such as if you have a Chase and Citi Visa or two different American Express Cards what leads to putting certain purchases on each card. In my mind I put a majority of purchases on the Gold Card to get my points on that card, (I use my Visa where AmEx isn't accepted and sometimes for smaller purchases) which is a reason I haven't bothered applying for another American Express card, or another Visa because I don't know when I would actually use them. I would feel that I am losing out on collecting points on the Gold Card.

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Postby Smerri » Wed Dec 01, 2010 10:46 am

ligio wrote:I have multiple cards from multiple credit card co's. 2 from Amex and 2 from Citi. To get the best rewards it takes multiple credit cards. That way you got something in your back pocket for different types of spending


Yeah I figured if you are doing cash back or different cards have different categories it's the best way to maximize rewards.

infomaniac wrote:The negative from having multiple credit cards from the same bank is it may result in reduced credit limits. Each bank allocates a set amount of risk to a given cardholder. When there are several lines of credit the limits their limits may be reduced in order to keep the total credit extended below a certain threshold.


This is a valid point and something I have definitely heard. People either closing accounts and merging their credit limit on one card, or having their limit split across other cards.

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Postby Cucumber » Fri Dec 03, 2010 3:36 am

I would feel that I am losing out on collecting points on the Gold Card.


Totally.

And b/c that card has an annual fee you are paying $$$ for then you would want to use as much as possible to get your money's worth. Having a credit card with an annual fee that's not used much is screwing yourself over or that's how I see it.
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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Dec 06, 2010 3:33 pm

The only part still open really a personal preference question, such as if you have a Chase and Citi Visa or two different American Express Cards what leads to putting certain purchases on each card.


What leads to putting certain puchases on each card is all about the rewards. There will never be a single credit card that gives the highest cash back for every type of purchase because that will be a money loser. How the programs are typically run is the credit card takes a loss on higher rebate categories (think Discover's 5%) in hopes that the spending earning only 0.25% to 1% will make up for it. This is why to get the most rewards possible it takes splitting up purchases over a few cards.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

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Postby Money card » Sat Jul 02, 2011 10:23 am

The Costco card the Aqua is a very bad idea. My dad has this card and I did some looking into this card. this card has a very bad cancellation policy.
Let's say for example the costco employees service goes down, the food isn't as fresh as it use to be. items out of place.
Now let's say for example you have membership on your costco card of 1989 let's say you had Blue from American express, so when you signed up with costco you have a red card that let's you in the store with your photo and your amex/costco to pay.
But the service has gone down , so now you want to cancel the red card with your photo on it, go to customer service.
But now you want to keep your Aqua card what do you think will happen next, let's say you want to go to models and buy a Charro
shirt with costco/amex card what do you think would happen?

Let's say you get the card and you go to the Natic Mall or Burlington Mall and your Aqua Costco/amex get's stolen 4 or 5 times , and you want to change over to the Blue , Blue cash or clear what do you think American express would say?

Let's say your company relocates to Oregon and there's no Costco's within 300 miles of where you will be living and working.
you have a 1989 member since on the card , you also have a red card that let's you in the store, a 50.00 fee for being a member. once you get a chance you can call american express and ask them to cancel your red card with your photo on it I'm sure it wouldn't be a problem being your 300 miles away after you relocated from Mass to Oregon. But now you want to keep your Aqua Amex/costco, after all it's accepted all over Oregon gas stations, restaurants, department stores But what do you think would happen?



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