Question about the number of credit cards a person should have and closing accounts

[saver17]

On 7/1 I will have a credit with $4500 in credit which is my Discover Card and a Amex with $1000 credit. I realized that those credit cards maybe all I need and was considering closing the Mastercard that is $3000. Or should I just keep all three since some places don't accept Amex?


Will that bring down my credit score?

[disneysteve]

On 7/1 I will have a credit with $4500 in credit which is my Discover Card and a Amex with $1000 credit. I realized that those credit cards maybe all I need and was considering closing the Mastercard that is $3000. Or should I just keep all three since some places don't accept Amex?


Will that bring down my credit score?

1. Cancelling a card will lower your score because it lowers your available credit and raises your utilization ratio.
2. Part of your score is based on age of your credit history, so if the MasterCard is your longest held card, that will also contribute to lowering your score.

Regardless of what you decide with that card, keep a couple of things in mind.
1. NEVER, NEVER, NEVER use a credit card to make a purchase if you don't already have the money on hand to pay the bill in full when the bill comes.
2. Keep your charges below about 30% of your limit, so $300 on the Amex or $1,350 on the Discover. And again, never charge more than you can afford to pay off when the bill comes. If you don't have the cash, don't charge the purchase.

[saver17]

1. Cancelling a card will lower your score because it lowers your available credit and raises your utilization ratio.
2. Part of your score is based on age of your credit history, so if the MasterCard is your longest held card, that will also contribute to lowering your score.

Regardless of what you decide with that card, keep a couple of things in mind.
1. NEVER, NEVER, NEVER use a credit card to make a purchase if you don't already have the money on hand to pay the bill in full when the bill comes.
2. Keep your charges below about 30% of your limit, so $300 on the Amex or $1,350 on the Discover. And again, never charge more than you can afford to pay off when the bill comes. If you don't have the cash, don't charge the purchase.

Mastercard came in March

[disneysteve]

Mastercard came in March

What possessed you to apply for a new credit card last month while you were already in debt on your other card and trying to dig out of that?

[saver17]

What possessed you to apply for a new credit card last month while you were already in debt on your other card and trying to dig out of that?

Because I thought it was Chase and it turned out it was capital one. Chase was the one that always rejected me and I was curious to see if I would be approved.

But I have a stable job now so I will never be in debt again

[disneysteve]

But I have a stable job now so I will never be in debt again

Yes, because people with stable jobs never get into debt.

[saver17]

Yes, because people with stable jobs never get into debt.

Well I have savings and ongoing employment it will be kind of hard unless something really wild happens

[rennigade]

Im 34...ive opened/closed around 50 credit cards to date...credit score 770 last time I checked. nuff said

[bjl584]

Because I thought it was Chase and it turned out it was capital one. Chase was the one that always rejected me and I was curious to see if I would be approved.

But I have a stable job now so I will never be in debt again

That doesn't answer the question.

Why did you open a new card? I recently opened a new card because:
1) there is a 0% APR for 18 months on balance transfers
2) I get 2% cash back on all purchases
3) there is no annual fee

So, what advantages did you receive by opening the Mastercard? Why are you considering closing it? What advantages are there to the AMEX and the Discover Card?

[saver17]

That doesn't answer the question.

Why did you open a new card? I recently opened a new card because:
1) there is a 0% APR for 18 months on balance transfers
2) I get 2% cash back on all purchases
3) there is no annual fee

So, what advantages did you receive by opening the Mastercard? Why are you considering closing it? What advantages are there to the AMEX and the Discover Card?

All 3 are 5% cash back

[corn18]

All 3 are 5% cash back

5% on certain purchases with a max limit.

[bjl584]

All 3 are 5% cash back

I'm sure that is limited to certain purchases or it has a cap on it.
And, it does you no good if you are servicing 15% to 20% interest on the balances.
Cash back credit cards are only worth having if you pay the balance off in full every billing cycle. From your previous posts, you aren't doing that.

[saver17]

I'm sure that is limited to certain purchases or it has a cap on it.
And, it does you no good if you are servicing 15% to 20% interest on the balances.
Cash back credit cards are only worth having if you pay the balance off in full every billing cycle. From your previous posts, you aren't doing that.

Yes it has a cap on it.

[GrimJack]

Well I have savings and ongoing employment it will be kind of hard unless something really wild happens

I have a steady job, zero CC debt but I bought a coffee table with end tables, then I got hit with a $700 auto bill (don't ask) - it cleared out my checking account and the $1k backup line of credit. If I could have made the payment a couple days later, there would have been no problem since that was payday. there was a mad scramble to get cash where it was needed. If one more thing had gone wrong, I would have had fees up the wazoo. With my CC at zero, I am keeping it that way until I can trust myself to use it correctly.

[saver17]

I have a steady job, zero CC debt but I bought a coffee table with end tables, then I got hit with a $700 auto bill (don't ask) - it cleared out my checking account and the $1k backup line of credit. If I could have made the payment a couple days later, there would have been no problem since that was payday. there was a mad scramble to get cash where it was needed. If one more thing had gone wrong, I would have had fees up the wazoo. With my CC at zero, I am keeping it that way until I can trust myself to use it correctly.

Unplanned purchases are the worst