Approved for 7 credit cards---too much?

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Hosam112
 
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Approved for 7 credit cards---too much?

Postby Hosam112 » Mon Nov 25, 2013 2:52 am

Hello everyone, my name is Hosam and I'm 22 years old going to Pharmacy School to hopefully be a pharmacist in 2 more years (fingers crossed). I'm not here to show off so please don't take me as such. I have nothing to show off with any way haha.

I have never had any credit history before but was lucky to get approved for a chase freedom card about 3 months ago when one of the bankers helped me get it approved finally. I just checked last week and found out my credit score to be 689 from the official myfico.com website by Equifax.

Knowing that I should keep the utilization ratio within 10 % at any time the lender send the info to any credit bureau and not necessarily at the end of each billing cycle, I thought to apply for couple of different cards and use each of them for a different purpose to pay for things. That way, I will be utilizing a little bit of each one, making each one active, building more credit, and my utilization ratio will be low regardless which is a win win situation in all regards. And any ways, I'm the type to always pay off my balance immediately as soon as I get a chance. I don't wait until the end of the billing cycle.

So I went ahead and applied for:

Citibank Simplicity---Approved
Macy's store Credit Card---Approved
American Express Blue Cash Everyday----approved
Bank of America Cash Rewards----Approved
Discover it (Not the student one, the regular one)----approved
Capital One Venture----Approved
Beside the original Chase Freedom card that I had.

I haven't applied for any other card so far and got rejected. Just those above !

All these new 6 ones I applied for and got approved with a week period. I understand that some of these banks place a hard inquiry which lower my score but it will be dropped within 2 years so no worried about that.

The real question is having about 6-7 credit cards really bad? Should I drop few of them or close them? I have heard that lenders might see you as a risk when you have too much credit cards because they get scared that in the instance you max out all the limits, you might be in too much debt that you might not be able to pay for those lenders themselves. But the question is, what is the standard for being too much? I have heard people having 44+ credit cards: WTHHH! That's crazy.

Thanks to everyone in advance by the way!


samhradh
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Postby samhradh » Mon Nov 25, 2013 9:45 am

Why in the world did you apply for so many at once? No matter, you've already opened the cards. At this point you should just keep them or it will look weird on your credit report. The inquiries drop off in six months, not two years. Opening a card and then closing it a couple months later stays on your report for ten years.

Figure out which of the cards you signed up for have sign up bonuses that you can reasonably attain and put those in your wallet. Earn the bonuses. Keep the less lucrative cards in the sock drawer for emergencies (if you loose your wallet) and put small purchases on them every so often to keep them active. Based on my own top spending categories (groceries/eating out/gas/clothing), this is what I would do:

Chase Freedom, AmEx Blue Cash, Discover it for the wallet. Don't forget to sign up every quarter for the Freedom and it's category bonuses and use them accordingly.

Keep the Simplicity, Macy's (worthless card, IMO), BoA Cash, and Venture at home.

If you are saving for travel rewards, swap out the Venture for the AmEx Blue Cash if you do not buy groceries a lot.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

MemberSince99
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Postby MemberSince99 » Mon Nov 25, 2013 10:40 am

You might as well keep them.

samhradh
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Postby samhradh » Mon Nov 25, 2013 1:59 pm

samhradh wrote:The inquiries drop off in six months, not two years.


I re-read this and realized it was misleading. Hard inquiries stay on your report for two years but don't get factored into your score after a year. After six months, some issuers do not factor the inquires in.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

takeshi
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Postby takeshi » Tue Nov 26, 2013 7:55 am

Hosam112 wrote:The real question is having about 6-7 credit cards really bad?

There's no fixed answer for any "Is X cards bad?" question. It's not the number of cards that matter but the impact to one's credit and one's ability to manage them. Going from no credit to 7 cards doesn't make your odds sound good but I don't know you and can't tell you one way or the other. At this point the damage is done. Unless you know or suspect that you'll get yourself into trouble then I'd suggest keeping them and using them responsibly to build your credit.

Also keep in mind that raising credit limits is just one way to manage reported utilization. You can also pay before statement close.

Hosam112 wrote:Knowing that I should keep the utilization ratio within 10 % at any time the lender send the info to any credit bureau and not necessarily at the end of each billing cycle

Most report at close. Some report on fixed dates. Some can report multiple times per month. If you keep an eye on your reports and your accounts you'll know when they report.

Midori
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Postby Midori » Tue Nov 26, 2013 4:04 pm

How adventurous!

Figure out what sign-up bonuses you need to attain. Get them, before the time period expires. Then go ahead and shift into a compartmentalized spending pattern. Good luck!

cashback
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Postby cashback » Tue Nov 26, 2013 5:09 pm

There is no such thing as too many credit cards. Wait 6 months and get 7 more.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

jmtdallastx
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Postby jmtdallastx » Fri Nov 29, 2013 9:35 pm

cashback wrote:There is no such thing as too many credit cards. Wait 6 months and get 7 more.


Do you have a goal in mind? What are you trying to target? Miles, rewards, cashback? Most of my cards are miles earning with the exception of the BCP.

DavidNY
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Postby DavidNY » Fri Nov 29, 2013 9:55 pm

cashback wrote:There is no such thing as too many credit cards.


Agreed :)

cashback
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Postby cashback » Fri Nov 29, 2013 11:19 pm

jmtdallastx wrote:Do you have a goal in mind? What are you trying to target? Miles, rewards, cashback? Most of my cards are miles earning with the exception of the BCP.


My goal is to profit as much as possible at the bank's expense.

I will target anything out there as long as the rewards outweigh my expense.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781



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