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Is there any advantage to having more than 1 credit card?

grrl

Diamond Member
I just got a second Visa, but one that gives me cash back like the Discover card. I'm thinking of cancelling the Visa I've had for over 10 years and just using the new one. Is there any advantage to having more than one? I'm thinking in terms of credit rating. I never finance through cards and always pay my bill every month.
 
Originally posted by: amdforever2
Closing the ten year old visa will cause your average age of accounts to decrease, harming your credit score.

That's what I thought, but the record will still exist, so is it that big a problem? Should I just use it occasionally? (Which I do anyways.)
 
Originally posted by: grrl
I just got a second Visa, but one that gives me cash back like the Discover card. I'm thinking of cancelling the Visa I've had for over 10 years and just using the new one. Is there any advantage to having more than one? I'm thinking in terms of credit rating. I never finance through cards and always pay my bill every month.

Do NOT close your ten year old visa. That will hurt your score.. Just don't use it.
 
1) Generally, you need at least 4-5 accounts on your credit reports to maximize your credit score. Loans, credit cards, mortgages, etc. all count towards this number. Thus, yes, there could be a significant advantage to having more than 1 credit card if you don't have many other accounts.

2) To maximize your credit score, you usually need one credit card with a $0 balance. This is NOT the same thing as paying off your CC in full each month. Because, when they run your credit report, the chance of you having a $0 balance that day is slim. Thus, you should have one CC that you rarely use so that you'll have one CC with a $0 balance.

3) For you own convenience, you should have one CC at home that you don't carry with you. Then, if your wallet/purse is stolen, you can still live your normal life when you are waiting for the replacement cards. Demon-Xanth, below, had a good point that is related. If one CC is giving you problems (scammers, technical difficulties, etc), you can instantly switch to the other card.

#2 and #3 can be the same CC.
 
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