How many credit cards do you have? - Page 2

frozemud · 12-27-2007, 05:37 PM

We have 11 cards, but they all have a zero balance and I only carry one Visa card in my wallet. Hubby only carries his one card as well.

I keep thinking we should close all these accounts, but I've had some of these open for over 10 years. Would it hurt my credit rating to close old accounts that are at a zero balance?

Will · 12-28-2007, 02:21 AM

That's a good question frozemud. I didn't know the answer either so I did a little digging.

According to MSN:

Quote:

# Don't close credit card accounts if you're going to be in the market for a major loan in the next year. Closing these accounts can't help your credit scores and may hurt them.

# Keep open your most helpful accounts. Even if you're not loan-shopping and your credit score is high, it makes sense to hang on to the accounts that are doing your scores the most good. These include your oldest credit card and your highest-limit card. Major bank cards (Visa, MasterCard, Discover, American Express) tend to help your scores more than retail cards, so try to keep those major accounts open even if you're not using them -- unless, of course, doing so costs you a fortune in annual fees.

That's the short version. Credit.com has a more thorough explanation.

First, If you had a great record with a credit card, you don't want it removed from your credit history. If you cancel a card, your history with that company will eventually drop off your credit history after 7 yers.

Second, canceling cards might hurt your revolving utilization rating:

Quote:

Revolving Utilization is the amount of your revolving credit card limits that you are currently making use of. For example, if you have an open credit card with a $2,000 credit limit and a $1,000 balance then you are 50% “utilized” on that account because you’re using half of the credit limit. This measurement is almost as important to your credit scores as making your payments on time. If you had a second open, but unused, credit card with a $2000 credit limit and a $0 balance then your aggregate revolving utilization is 25% because you have $4000 in credit limits and $1000 in balances. $1000 divided by $4000 is .25 or 25%.

frozemud · 12-28-2007, 12:49 PM

That is very helpful Will. Thank you so much for doing the investigating!

Will · 12-30-2007, 04:23 AM

I'm glad it helped.

Pinoy Smart Blogger · 12-31-2007, 01:56 AM

I have 1 credit card and 1 debit card. The debit card was something I needed to make online transactions, buy domain names, etc. The other card was a compulsory to everyone at work :|

Although I would have liked 1 credit card, having two has its advantages.

The Honest Dollar · 12-31-2007, 04:27 AM

I have 3 cards -

A Discover Card that offers 5% cash back on certain categories that change every quarter.

A MasterCard that I only use for a small monthly bill, because it gives me free monthly updates on my FICO score.

A Visa that I've had since college that I use for most of my purchases. 2% on groceries, supermarkets, and convenience stores; 1% on everything else.

Most people I know have around 2-3 cards. I think some people have a few dozen cards for balance arbitrages. I'm not confident enough in my organizational abilities to try that.

eatmyace007 · 12-31-2007, 10:38 AM

i generally have one for personal and one for business. right now i have two for each, only to get free flights or 0% balance transfer money. in a month or so i will be back to 2.

PlantGeek · 12-31-2007, 10:45 AM

I have 3 but they all have $0 balances. They're paid off every month. It wasn't always that way though....it took a lot of discipline.

doubled · 12-31-2007, 11:20 AM

I have more than 10 cards, but I don't use them all. I just use two cards. One is my primary card and the other one I use for my Sam's club purchase since they only take Discover

tayana · 01-02-2008, 10:56 AM

I actually only use two, but I have six. I'd like to close a few, but I haven't gotten around to it yet.

View Poll Results: How many credit cards do you have?
1-5	42	72.41%
5-10	10	17.24%
11-15	5	8.62%
15+	1	1.72%
Voters: 58. You may not vote on this poll

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12-27-2007, 05:37 PM	#11
frozemud Member Join Date: Dec 2007 Posts: 50 Reputation: (10)	We have 11 cards, but they all have a zero balance and I only carry one Visa card in my wallet. Hubby only carries his one card as well. I keep thinking we should close all these accounts, but I've had some of these open for over 10 years. Would it hurt my credit rating to close old accounts that are at a zero balance?

12-28-2007, 12:49 PM	#13
frozemud Member Join Date: Dec 2007 Posts: 50 Reputation: (10)	That is very helpful Will. Thank you so much for doing the investigating!

12-30-2007, 04:23 AM	#14
Will Administrator Join Date: Jan 2007 Posts: 385 Reputation: (19)	I'm glad it helped.

12-31-2007, 01:56 AM	#15
Pinoy Smart Blogger Junior Member Join Date: Dec 2007 Location: Philippines Posts: 9 Reputation: (10)	I have 1 credit card and 1 debit card. The debit card was something I needed to make online transactions, buy domain names, etc. The other card was a compulsory to everyone at work :\| Although I would have liked 1 credit card, having two has its advantages.

12-31-2007, 04:27 AM	#16
The Honest Dollar Member Join Date: Dec 2007 Location: New York Posts: 90 Reputation: (63)	I have 3 cards - A Discover Card that offers 5% cash back on certain categories that change every quarter. A MasterCard that I only use for a small monthly bill, because it gives me free monthly updates on my FICO score. A Visa that I've had since college that I use for most of my purchases. 2% on groceries, supermarkets, and convenience stores; 1% on everything else. Most people I know have around 2-3 cards. I think some people have a few dozen cards for balance arbitrages. I'm not confident enough in my organizational abilities to try that.

12-31-2007, 10:38 AM	#17
eatmyace007 Junior Member Join Date: Dec 2007 Posts: 4 Reputation: (20)	i generally have one for personal and one for business. right now i have two for each, only to get free flights or 0% balance transfer money. in a month or so i will be back to 2.

12-31-2007, 10:45 AM	#18
PlantGeek Junior Member Join Date: Dec 2007 Posts: 18 Reputation: (10)	I have 3 but they all have $0 balances. They're paid off every month. It wasn't always that way though....it took a lot of discipline.

12-31-2007, 11:20 AM	#19
doubled Junior Member Join Date: Dec 2007 Posts: 3 Reputation: (10)	I have more than 10 cards, but I don't use them all. I just use two cards. One is my primary card and the other one I use for my Sam's club purchase since they only take Discover

01-02-2008, 10:56 AM	#20
tayana Junior Member Join Date: Jan 2008 Posts: 2 Reputation: (10)	I actually only use two, but I have six. I'd like to close a few, but I haven't gotten around to it yet.