Author Topic: Too many credit cards  (Read 564 times)

EconDiva

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Too many credit cards
« on: July 15, 2018, 07:36:38 AM »
Over the past year I've gotten quite a few credit cards for the purpose of travel hacking.

I think I've reached my limit!  I just got declined for two cards - the Chase United and the Capital One Venture :(

I just got the letter in the mail from Chase stating I had too many cards opened up recently; I'm sure the Capital One Venture one will say the same thing.

I'm kinda bummed as I really need to continue accumulating points for a trip I'm planning in February that will be very expensive.  If I can't get any more cards I need to scrap the destination soon and restart from scratch based on where I can go with the few points I can scrounge together now (which I was planning to use in 2018 for somewhere else).

Anywho...my question is, could I still open up a business card or 2?  I know of one American Express business card and the Chase Ink which either might just be enough to help massively with the February trip.  Or should I just chill for the rest of the year? 
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NorthernBlitz

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Re: Too many credit cards
« Reply #1 on: July 15, 2018, 08:10:50 AM »
Is the problem that you have too many CCs open?

With Chase, you may have hit the 5/24 rule? I don't know if Capital One has a similar policy.

We did the CC thing to get a mostly free trip to Hawaii last summer. We've been taking some time off and have cancelled all but the few cards we use regularly.

EconDiva

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Re: Too many credit cards
« Reply #2 on: July 15, 2018, 08:15:24 AM »
Is the problem that you have too many CCs open?

With Chase, you may have hit the 5/24 rule? I don't know if Capital One has a similar policy.

We did the CC thing to get a mostly free trip to Hawaii last summer. We've been taking some time off and have cancelled all but the few cards we use regularly.

Well that's what I am thinking.  I've opened 7 if I'm recalling correctly in the past year.

Here's the exact wording from the Chase letter:
"Too many credit cards opened in the last two years associated with you."

^So for the Chase card it seems the denial was due to the 5/24 rule-I just got this letter in the mail.  FWIW, I applied for the Capital One Venture card a few days after the Chase one as I had initially gotten a "we're reviewing your application" type of notice when I applied for the Chase one.  The Capital One Venture one was just outright declined when I filled the app out online.

I was thinking of cancelling two cards that are now a year old and are no longer being used - I know everyone says not to do that but at this point most of my open accounts were opened between this time last year and today.  I was thinking it shouldn't have too much of an impact on my score; I will always keep my oldest card open.
« Last Edit: July 15, 2018, 08:19:32 AM by EconDiva »
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nick663

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Re: Too many credit cards
« Reply #3 on: July 15, 2018, 09:06:07 AM »
Capital One Venture seems to have some strict criteria (I was just declined for one as well).  Chase has 5/24.  There are other options out there that aren't as strict.

Just an opinion but we plan vacations that we am willing/able to pay for first and then any points/rewards we can get to offset the cost are a bonus.  We have even gone as far as moving the cash value of the points from our vacation fund to our retirement account.  We do this to avoid the lifestyle inflation from "free" travel that seems common in the travel hacking sphere.

homelesshobbit

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Re: Too many credit cards
« Reply #4 on: July 15, 2018, 09:27:01 AM »
yeah, you'll need to take some time off from CC's if you want to get any of Chase's decent cards now.

EconDiva

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Re: Too many credit cards
« Reply #5 on: July 15, 2018, 09:29:24 AM »
yeah, you'll need to take some time off from CC's if you want to get any of Chase's decent cards now.

Well I can forgo the Chase ones.  But do I need to bow out completely for the time being?
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EconDiva

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Re: Too many credit cards
« Reply #6 on: July 15, 2018, 09:33:49 AM »
Capital One Venture seems to have some strict criteria (I was just declined for one as well).  Chase has 5/24.  There are other options out there that aren't as strict.

Just an opinion but we plan vacations that we am willing/able to pay for first and then any points/rewards we can get to offset the cost are a bonus.  We have even gone as far as moving the cash value of the points from our vacation fund to our retirement account.  We do this to avoid the lifestyle inflation from "free" travel that seems common in the travel hacking sphere.

Are you going to try to appeal the Capital One decline?

On a separate note I just opened up a new Chase savings account for a cash bonus but that won't hit for another three months. 

RE: vacations I'm willing to pay for - that's tricky as once you're used to not paying for them you can't imagine using your own money to go somewhere.  I knew that between the fall of this year and summer of next year had the potential to be heavy travel periods (if I could plan for them correctly to be) due to a few milestone events.  I wasn't thinking as much about how I might not even be able to fund everything with points because it would just be too much.  I'm willing to put away some money for travel now that my EF is jusssst almost fully funded finally but it won't be enough to make this trip in February-not without another at least one additional card.
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Rubic

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Re: Too many credit cards
« Reply #7 on: July 15, 2018, 09:42:59 AM »
I was thinking of cancelling two cards that are now a year old and are no longer being used - I know everyone says not to do that but at this point most of my open accounts were opened between this time last year and today.  I was thinking it shouldn't have too much of an impact on my score; I will always keep my oldest card open.

If there are no annual fees on those cards, don't close the accounts.  I have
about 23 cards open.  For the non-AF cards, I make a small purchase (usually
$1 gift reload on Amazon) every 6 months so the bank won't close the card
due to non-use.  This helps my average age of accounts.

Put all your cards on a spreadsheet to track them: last 4 digits of the account,
application date, cancel date (if AF applies), minimum spend due date, etc.
There no point in travel hacking if you don't keep things organized.

Read the sidebars on /r/churning to get better educated about Chase 5/24
and other rules before you waste hard pulls.

Good luck!



Catbert

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Re: Too many credit cards
« Reply #8 on: July 15, 2018, 12:09:50 PM »
Cancelling existing cards won't help you to get new ones.  Chase's 5/24 rule applies to how many cards you've obtained in 24 months, not how many of them are still open.

Do you have a spouse or partner that you could tag team with?  If you're 7/12 you'll need to cool it for awhile.  I aim for 5 a year between DH and me so we both stay around 5/24.

Business cards might be an option.  Do you have a "business"?

EconDiva

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Re: Too many credit cards
« Reply #9 on: July 15, 2018, 01:20:32 PM »
Cancelling existing cards won't help you to get new ones.  Chase's 5/24 rule applies to how many cards you've obtained in 24 months, not how many of them are still open.

Do you have a spouse or partner that you could tag team with?  If you're 7/12 you'll need to cool it for awhile.  I aim for 5 a year between DH and me so we both stay around 5/24.

Business cards might be an option.  Do you have a "business"?

No spouse.

I do sell items across eBay/Poshmark (not sure if that qualifies as a "business")...
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NorthernBlitz

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Re: Too many credit cards
« Reply #10 on: July 15, 2018, 02:37:36 PM »
I was thinking of cancelling two cards that are now a year old and are no longer being used - I know everyone says not to do that but at this point most of my open accounts were opened between this time last year and today.  I was thinking it shouldn't have too much of an impact on my score; I will always keep my oldest card open.

If there are no annual fees on those cards, don't close the accounts.  I have
about 23 cards open.  For the non-AF cards, I make a small purchase (usually
$1 gift reload on Amazon) every 6 months so the bank won't close the card
due to non-use.  This helps my average age of accounts.

Put all your cards on a spreadsheet to track them: last 4 digits of the account,
application date, cancel date (if AF applies), minimum spend due date, etc.
There no point in travel hacking if you don't keep things organized.

Read the sidebars on /r/churning to get better educated about Chase 5/24
and other rules before you waste hard pulls.

Good luck!

I don't know if there's much of a difference between having a bunch of no-fee cards you don't use or closing them. I tend to close them, which would open up the opportunity to get the bonus for opening them again in the future. I don't think that the penalty for closing cards is (1) large or (2) durable (i.e. I think whatever reduction you have in your score is removed in a short time).

I feel a bit better without so many open cards as there seems to be less opportunity for fraudulent that I'd have to spend time rectifying.

But, I am far from the biggest CC churner out there. Maybe someone else has better info then me.

katsiki

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Re: Too many credit cards
« Reply #11 on: July 15, 2018, 02:48:04 PM »
No spouse.

I do sell items across eBay/Poshmark (not sure if that qualifies as a "business")...

You do indeed have a "business" then.

Read up on Chase business cards and 5/24.  It applies to some but not others.  I don't fully understand it myself as I just opened my first Chase business card recently.  Planning to do more but need to line up the spend first.

Also, if you are not trying to get Chase UR points, you may find other business cards easier to get in your situation.

Hope this helps.
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kpd905

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Re: Too many credit cards
« Reply #12 on: July 15, 2018, 03:21:12 PM »
I'd hit up business cards from Citi, Amex, and Bank of America.  None of these will report to the personal credit bureau.  I believe Chase and Capital One business cards will both count toward 5/24, so I'd avoid those for now.
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EconDiva

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Re: Too many credit cards
« Reply #13 on: July 15, 2018, 06:09:08 PM »
No spouse.

I do sell items across eBay/Poshmark (not sure if that qualifies as a "business")...

You do indeed have a "business" then.

Read up on Chase business cards and 5/24.  It applies to some but not others.  I don't fully understand it myself as I just opened my first Chase business card recently.  Planning to do more but need to line up the spend first.

Also, if you are not trying to get Chase UR points, you may find other business cards easier to get in your situation.

Hope this helps.

Thanks!
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EconDiva

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Re: Too many credit cards
« Reply #14 on: July 15, 2018, 06:09:27 PM »
I'd hit up business cards from Citi, Amex, and Bank of America.  None of these will report to the personal credit bureau.  I believe Chase and Capital One business cards will both count toward 5/24, so I'd avoid those for now.

Good to know...thank you!
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bacchi

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Re: Too many credit cards
« Reply #15 on: July 15, 2018, 06:23:46 PM »
I don't know if there's much of a difference between having a bunch of no-fee cards you don't use or closing them. I tend to close them, which would open up the opportunity to get the bonus for opening them again in the future. I don't think that the penalty for closing cards is (1) large or (2) durable (i.e. I think whatever reduction you have in your score is removed in a short time).

Agreed. Closing a few cards doesn't affect much. It's good to keep a few open for years in order to increase your AAoA (Average Age of Accounts) though.

Citi's time limit is based on when the account opened or closed. So...if you open a Citi AA card in 6/2016 but haven't closed it yet, you can open a new one (and have 2 open at once) in 7/2018. If you opened one in 8/2015 and closed it in 7/2016, you have to wait a month until 8/2018.