[zx10guy]

Originally Posted by NormE91

Amex is one case where I feel the annual fee is actually worth it. I put basically my whole life on it, and pay it off each month (which you have to of course). I use it like many others use debit cards. I get back the annual fee 10-15 times over in rewards points which I generally use for airline tickets. No black out dates or anything. They also offer superior purchase protection and many other benefits.

As I said above, there are other AMEX cards which DO NOT have an annual fee. My AMEX Cash Rebate card doesn't have one. Nor does my AMEX Costco card. Both provide rewards. In addition, I don't have to pay in full with either card. It functions as a normal credit card where if I don't pay in full I get assessed a finance charge at 10 and 15% respectively; but of course I pay in full every month. My wife's AMEX Blue card also has no annual fee and pays out rewards.

[FC4]

Hmm...talkin about annual fees...

[John 070]

Originally Posted by PSUSMU

I don't believe you "lose" that history. It's just frozen at 84 months. Your credit history is what shows up on your credit report.
If you actually lost the history, wouldn't delinquent debtors just cancel and erase their history?

Not the 84 mos....as each month passes, you have 84, then 83, then 82, etc., until 84 mos later this good untapped credit card is devoid of good credit. It gets labeled closed by you, which is negative.

[zx10guy]

Again, it's all about your particular credit history. But closing out accounts while having a negative effect on your credit, isn't as bad as people are making it out to be. I closed out a couple of Citibank credit cards when they started to threaten an annual fee if you don't charge a certain amount each year. These cards I had about 5-8 years. It didn't cause my FICO score to plummet through the floor as my FICO score was always around 760 to 780. And with my recent loan app a few months ago was 801.

[bloppitybloop]

You might be able to call Amex and get a product change. You could get the Blue Cash Everyday or some other card with no annual fee.

You might wanna check out the forums on myfico.com. That's a pretty good resource for all questions credit.

[PSUSMU]

I don't f with cash rewards - only miles/points.

[Sara]

Ive wanted to close my store credit card for a long time because I only can use it at that specific store and it doesnt seem very sensible to have. However, I opened it 8 years ago and have never missed a payment. Have always paid it in full every single month (Or at least the months I shopped there) I opened it when I was 18 and its been pretty much my A+ report card credit card. "So why would I want to close that", asked my financial adviser. Im keeping it open and I just use it once every 5-6 months to make sure it doesnt get closed due to inactivity. The rewards on it suck but hey, its perfect for my credit history and I value that more than I do a $20 reward card.

[Sara]

Sorry to derail this OP,

but guys....

How many credit cards is too many? I really want to open a credit card that rewards me with airline miles and such since I fly so much.

[2011CrazE89]

Originally Posted by Sara504

Sorry to derail this OP,

but guys....

How many credit cards is too many? I really want to open a credit card that rewards me with airline miles and such since I fly so much.

Personally I have two and that's plenty for me. I use my debit card as much as possible.

[bloppitybloop]

Originally Posted by Sara504

Sorry to derail this OP,

but guys....

How many credit cards is too many? I really want to open a credit card that rewards me with airline miles and such since I fly so much.

I don't think there's really anything as "too many". As long as you don't open them all in a short period of time and don't carry balances on them, it doesn't really matter. Having multiple cards can help your credit score as it can greatly reduce your utilization percentage.

If you haven't opened a credit card in awhile, I don't think there would be any harm in opening a new card that gives you airline miles.

[bolinp78]

I've always used a simple Citi Mastercard that gives me straight 1% cash back on everything. Problem is they send it in a check, which gets annoying when I compare it to a Fidelity Investments Visa (I have a Fidelity brokerage account already) that gives me 1.5% cash back on the first $15,000 of purchases in a year and 2% for every purchase thereafter... And it deposits it directly into my brokerage account. As a result, I recently got the Visa to replace the Mastercard.

[PSUSMU]

Originally Posted by 2011CrazE89

I use my debit card as much as possible.

Why... you get nothing for debit. :-|

[2011CrazE89]

Originally Posted by PSUSMU

Why... you get nothing for debit. :-|

I don't get a bill either

[PSUSMU]

Originally Posted by 2011CrazE89

I don't get a bill either

I get a bill, pay it off every month, and get rewards for it. Cash/debit is for the birds.

[954Stealth]

Having multiple cards open is perfectly fine as long as you manage them appropriately. Multiple cards will increase the amount of available credit and will show future creditors that you know how to manage increasingly larger amounts responsibly.

[JasonCSU]

Originally Posted by 2011CrazE89

Personally I have two and that's plenty for me. I use my debit card as much as possible.

Why use the debit card though? I always use a credit card for the protection and benefits (cash back & miles) it offers. My cards are paid in full each month, so it is essentially like using a debit card, but with far more benefits. For those who struggle with managing their finances and carry balances on their cards, a debit card is probably a better option so they can't spend what they don't have.

[JasonCSU]

Originally Posted by Sara504

Sorry to derail this OP,

but guys....

How many credit cards is too many? I really want to open a credit card that rewards me with airline miles and such since I fly so much.

I'm not sure there is an exact number that is considered "too many" because it really depends on the individual and their credit. As others have said, there shouldn't be a problem with you applying for a miles card as long as you haven't recently opened other accounts, or have a slew of existing accounts carrying balances.

[Templar]

Originally Posted by JasonCSU

Why use the debit card though? I always use a credit card for the protection and benefits (cash back & miles) it offers. My cards are paid in full each month, so it is essentially like using a debit card, but with far more benefits. For those who struggle with managing their finances and carry balances on their cards, a debit card is probably a better option so they can't spend what they don't have.

Agreed. If you spend only what you can afford to pay off in a month, not only do you not accrue any interest charges, but you still reap the benefits of that card if any. It also shows good payment practices and credit to debt ratio.

Personally, I have two credit cards. Have had one for about 5 years and another for almost 10. No issues with either. The only use for my debit card is at the ATM if I need cash.

[z4drvr]

From what I understand closing or cancelling your credit cards affects your credit negatively. You should keep them at a low or 0.00 balance. However, kind of annoying to be charged an annual fee on cards your not using.

[John 070]

Originally Posted by 2011CrazE89

Personally I have two and that's plenty for me. I use my debit card as much as possible.

I have about 15. But I am human and have an employer--I really only use 3 cards, based on rewards.

When I got out of college, I was diligent about closing unused credit cards, until someone told me it lowers your credit score.

Last time I refi'd the house, the arrogant banker (because I was after a true no-fee [this cannot be done on a mortgage, just a home equity product]) asked me, "What's your credit score?" Because he was so smug, I said, dunno, 860, 840, 850, you tell me.

He acted like he didn't believe me, and it turned out to be 850.

We have been living comfortably with no mortgage and no car payments, but now my wife thinks we need a McMansion. So I guarantee we'll need a mortgage again and be 50 by the time that million dollar house is paid-off. These are decisions one makes in life. If wrong, big consequences.

[2011CrazE89]

I learned the hard way that not using your credit card will cause them to reduce your credit line. One of my very first cards was IKEA with a 2K credit line. The card sat in my wallet with no activity for a couple years. I was excited to finally move into my first apartment and pick up some furniture. Stood there on line with about $1.7K in furniture, pictures, lamps, etc. When the cashier rang me up. DECLINED! Called customer service when they told me it was reduced to $500.00. Pretty embarrassing having to put half the items back.

[Sara]

Originally Posted by 2011CrazE89

I learned the hard way that not using your credit card will cause them to reduce your credit line. One of my very first cards was IKEA with a 2K credit line. The card sat in my wallet with no activity for a couple years. I was excited to finally move into my first apartment and pick up some furniture. Stood there on line with about $1.7K in furniture, pictures, lamps, etc. When the cashier rang me up. DECLINED! Called customer service when they told me it was reduced to $500.00. Pretty embarrassing having to put half the items back.

What about using the full limit?

Anyone know? My store card is a Victoria's Secret card. There's NO WAY I'll ever need $2,000 worth of bras and panties at once. The most I've ever purchased on the card was like $700 and paid off the exact same month. Usually my purchases are less than $100 every 5-6 months or so and I've had the card 8 years now. Will not ever reaching the limit or even half of the limit result in them lowering the limit??