So, how many cards do you have? #AskTPS

TPS Reader Julie sent us a great question that we are excited to answer!

I read all of the content on your site about different cards, but I hear that having too many cards is bad for your credit. How many cards do you personally have?

The answer is 21! This may sound like an exorbitant amount, but let me explain the strategy.

I will typically open 2-4 credit cards every 6 months depending on which cards have the best sign up bonus at the time and/or which cards I would be eligible to receive the sign up bonus again. I tend to open these cards at the same as that seems to limit the impact on my score. On average, each card will have a bonus valued between $300-$600. By opening multiple cards per year, the sign up bonus and benefits add up to thousands of dollars each year! Because of this, I have not paid for a flight out of pocket in over two years. That coupled with Delta Diamond Medallion status means that I can buy free economy tickets and use my status to upgrade to first class at no cost.

Should you have 21 cards? The answer is most likely no.

Having this many cards requires a fair amount of work on my end to keep track of which cards I have, when they are up for renewal and which cards to cancel/downgrade before they renew.

Another item to consider is that many banks are starting to crack down on churning and have strict rules to get a new card. For example, in addition to excellent credit, Chase now has a rule called “5/24”. This rule means that if you have opened more than 5 cards in the last 24 months, then you will not be approved for a new Chase credit card.

For most people, I recommend that you have no less than 5-10 credit cards as that by having less than this will actually hurt your credit. The credit bureaus such as TransUnion & Equifax consider a “good” credit report will have 11+ accounts spanning credit cards, charge cards, loans, etc. If you’re starting at 0, slowly build up the number of cards over time starting with a card such as the Chase Freedom cash back card.

Is 21 cards bad for your credit? It depends on your situation.

We’ll use my credit score from Credit Karma as an example. As you can see below, I have a 792 credit score which they consider excellent.

CreditKarma

My credit score is 792 – which Credit Karma considers excellent.

Although I have 21 cards, I still have never been denied for a card since I always pay the bill in full and on time, always keep each individual credit card utilization under 30% and have a large amount of available credit across the 21 cards.

Any advice that you read on The Perfect Swipe is worthless if you aren’t able to manage your spending responsibly and pay your bills on time. If you’re able to be responsible, then don’t worry about the number of cards that you have.


Thanks for the question, Julie! We hope this gives you a peek behind the curtain of The Perfect Swipe in how we approach our credit card sign ups.

If anyone has a question for TPS, reach out to us on Twitter @ThePerfectSwipe or email us at [email protected]. #AskTPS

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