There’s been so many good credit card promotions out there lately that I just had to take advantage of them all. Southwest Visa was giving away 50,000 rapid rewards points after first purchase, good for two domestic round trip flights. I signed up for two of these, one being a business account. This comes in very handy because my wife and I plan on taking a trip to Hawaii this coming summer to celebrate our 1 year anniversary. We’ll fly out to Las Vegas using these points and from there fly out to Honolulu. That will also be free because I signed up for Hawaiian Airlines credit card where I’ll receive 35,000 points, good for 1 round trip flight from mainland. I also signed up for two of these. That’ll pretty much take care of our travel expenses.
For our hotel stay, I signed up for Hilton credit cards where I’ll receive 60,000 HHonors points. Depending on the quality of the hotel, I can use these points for up to 6 nights. I signed up for myself and one for my wife so we have two of these cards as well. I also got approved for Marriott credit card where I’ll receive 50,000 points. These points will also get me up to a few nights for free. All together, including my everyday Discover Card, Chase Freedom Mastercard, and my new AMEX Everyday card, I have a total of 10 credit cards and my wife has 2 cards under her name, giving us a grand total of 12 cards. However, I still advocate having only three or four credit cards at a time as a general rule of thumb.
| Credit Cards | Credit Limit |
|---|---|
| Chase Freedom | $12,000 |
| Discover More | $10,000 |
| Amex Everyday | $25,000 |
| Target | $3,000 |
| Banana/Gap | $3,000 |
| Amex Hilton | $15,000 |
| Amex Hilton | $7,500 |
| Southwest | $10,000 |
| Southwest Biz | $5,000 |
| Hawaii – BoA | $7,500 |
| Hawaii – BoH | $15,000 |
| Marriott | $7,000 |
| 12 Cards Total | $120,000 |
Now, I don’t recommend just anyone to go crazy with credit card signups. If you don’t know what you’re doing and if you’re not careful, things can get out of control pretty quick. The last thing you want is to find yourself in a massive credit card debt. All together, I have over $120,000 in credit limit now. That’s insane!
Things To Consider
Before you apply for any credit cards, make sure you consider the following things:
1. Credit Score – Every time you apply for a new credit card, your credit score will take a hit. Typically, they’ll be anywhere from 3-8 points for each hard pull in your credit report. Make sure you have enough wiggle room in your score to take a few points off of your score. My credit score was 830 from Experian so I was still able to afford to lose a few points from my overall score without compromising any future borrowing power.
2. Issuing Bank – Most banks only allow a few credit cards to be opened at any given time. If you already have three cards from Chase, then you may be declined if you were to apply for another Chase card, despite your credit score. If you already have three cards from Chase, think about opening a card from Citi or Bank of America.
3. Promotions – Oftentimes, you can take advantage of a promotion by signing up and spending a required amount of money within a certain time period. Make sure you read the fine print and that you are able to meet the requirements to release the promotion. Some cards have as much as $10,000 spending limit in order to receive the promotion.
4. Canceling Cards – If you change your mind and need to cancel your cards, you should wait at least 6 months from your apply date. If you cancel too early, it could lower your score by a few points. If you wait at least 6 months, there should be no penalty in your score. Also, if you cancel too soon, you could be blacklisted from the issuing bank. The longer you hold on to the card, the better it is. I don’t plan on keeping all 12 cards forever. I will probably cancel a few cards within the next twelve months.
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{ 14 comments… read them below or add one }
I love the card promotions out there.. but I’m trying to be a little circumspect with getting Chase cards since I’ve gotten the BA one and the Hyatt one already. I think in 2012 I’ll apply for the Sapphire or the Ultimate Rewards depending on what works best for me.
Well Heeled Blog recently posted..Guess Who Is Going to Business School
I just signed up Citi Thank You Preferred Credit Card to get $500. I can easily meet their spending criteria because I average $1500 per month in credit card spending past few years.
UltimateSmartMoney recently posted..Stock Market Technical Analysis Reveals Potential Repeat of 2008
That promotion will actually end today so good job in taking advantage of it.
Charles recently posted..Give Yourself a Loan For Guaranteed Savings
Awesome. I love getting credit cards for free (or almost) travel. My wife – not so much!
Craig Ford recently posted..Braggin’ on AutoSlash.com
That’s a lot of CCs and one heck of a credit line! I only hold 1 card. I feel poor now
On a serious note, if someone does not have the spending discipline, he could get financially ruined if he slips into CC overspending.
BeatingTheIndex recently posted..Parallel Energy Trust: Is the Generous Yield Sustainable?
i agree, so i don’t recommend just anyone doing it. if anyone cannot be a responsible credit card user, then this would be a really bad idea.
Charles recently posted..AMEX Blue Cash Card: Everyday vs Preferred Card
Are those points on hotel cards obtained as sign up promotion? What are your plans when the nights are used up? Are you going to get rid of them or retain them? Also do you have any loan that you are looking for in next couple of years?
SB @ One Cent At A Time recently posted..How To Feel Good and Increase Productivity
I will probably cancel the cards once the year is up to avoid the annual fees. I have no plans on getting a loan, but even if the situation changes, I’m still good because my credit score is over 800. I probably took a little hit after these sign ups but I have lots of wiggle room to remain at Excellent level.
Charles recently posted..5 Ways To Stop Overspending Now
Do you find that it gets confusing to have that many cards though? Or are you just using the ones you’ve gotten for the points enough to qualify, and then sticking them in a drawer?
Jackie recently posted..The One Thing Every Get Out of Debt Plan Needs to Succeed
We almost always focus on how credit cards are to personal finance. This is an entirely new and interesting approach to getting value for your credit cards. Thanks for the idea!
subhorup dasgupta recently posted..Merry Christmas!
I have 5 credit cards and currently use 3 of them. That seems like enough for me to keep track of. My Target card is only used at Target and I switch between my Discover and Chase Freedom depending on the bonus categories. My Capitol One has a 0% balance transfer on it so I’m not using it until the transfer is paid off.
Andy Hough recently posted..A Big Sign that the Bubble Has Peaked
Wow! I couldn’t imagine having that many credit cards. I’m still on a credit diet and using no credit at the moment while I pay down debt. Then I will maybe get one card just for emergencies.
LaTisha @YoungAdultFinances recently posted..Working Part Time in College: Four Common University Jobs
I have to say that the post title definitely got my attention. I said Wow and started reading. I can say that having that many c/cs is not for me. I have one and we have a very complex hate/love relationship.
Twelve? Are you kidding?
Aloysa recently posted..Reading Salon: Pre-Christmas Edition
FYI, if you got 100,000 points from southwest you only need 10,000 more to earn a Companion Pass and your wife will fly free with you anywhere you fly.
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