I have 20 Credit Cards and my biggest dellema is which one to apply for next

I have 20 credit cards, and you’re about to hear about it. Over the next few weeks (maybe months, chill, it’s a lot of cards) I’m going to write about each of the credit cards I own. While my goal is to give you the basics on each card, I’ll also explain why I signed up for the card, my long-term / short-term plan for the card, as well as some insight as to why this card is either in my wallet, in my drawer, and/or on the chopping block, or I guess cutting block since I do cut up cards before I throw them out. To give just enough insight as to my credit portfolio without giving you my Credit Karma login, I have 20 credit cards, 1 other line of credit, an 825 credit score (kinda a big deal), 100% payment history, and 1% credit usage as of writing this article.

How i’m benefiting from multiple credit cards

This isn’t a blog to tell you why you should get a credit card, just giving you some anecdotal data points to use with your friends at the bar (you do talk about credit card points at the bar, right?). Firstly, let's discuss some potential benefits of owning multiple credit cards. With more credit cards in your wallet, you may have access to a wider range of rewards programs, cashback offers, and other perks. Each card may have its own unique rewards program, allowing you to earn rewards for different types of purchases or for shopping at different retailers. This can add up to significant savings and benefits over time. I probably earn on average 3.5x points on purchases throughout the year (exclusive of any special promos or sign up benefits). The minimum I’ll earn on any transaction is 2x points due to cards that have that as an earning floor for all purchases, earn 4x on a chunk of spend (dining and grocery), as well as 5x-6x through some unique cards / benefits on certain categories. We’ll get into what these points are worth as we go on this 20 step journey.

How Multiple Credit Cards Can Improve Credit

One benefit of having so many lines of credit is that each line of credit impacts my FICO score less and less, so as I look to grab another one, it’s somewhat like throwing a bucket of water in the ocean. Owning multiple credit cards can potentially help improve your credit score. A major factor in determining your credit score is your credit utilization ratio, which is the amount of credit you are currently using compared to the total amount of credit available to you. By having multiple credit cards, you can increase your total available credit, which can lower your credit utilization ratio and potentially improve your credit score.

it can build and it can destroy

Though as you’ll read throughout my analysis, there are also potential drawbacks to owning multiple credit cards. Having too many credit cards can make it difficult to keep track of your spending and payments, leading to potential missed payments or debt accumulation. I recently heard an analogy about credit being like a hammer. Sure it can help you build a house, but if you’re not careful, you can also hammer a nail through your foot. I think it was the elegance of the analogy that stuck in my brain. Some credit card companies have different tolerances about approving individual with multiple cards as a potential red flag, but we’ll go into each of the major banks and their limitations.

Let’s ride

Overall, when used appropriately owning multiple credit cards can provide you with access to a wider range of rewards programs, potentially improve your credit score, and provide greater flexibility and security when making purchases. However, it's important to carefully consider your financial situation and to use credit responsibly to avoid any potential drawbacks. It's also important to note that credit cards are not for everyone and should be used with caution.