What’s the point of having credit cards from multiple banks? Wouldn’t it be more beneficial to have multiple cards with the same bank so all your points are combined instead of scattered across different banks? For context, I’ve had the same card for almost 7 years (CFU, $1700 limit), but I’ve just started educating myself on credit cards and I’m looking to get another card to expand my credit history and build credit. I just don’t see the benefit of having cards with different banks when I can consolidate points in one place.
If for some reason Chase decided they no longer wanted you as a customer, your entire credit card portfolio could go poof overnight.
Keller said:
If for some reason Chase decided they no longer wanted you as a customer, your entire credit card portfolio could go poof overnight.
They can do that? Has that ever happened to someone you know?
@Westin
Yes, they can and have.
@Westin
Yes, they can and I’ve heard of it happening. I didn’t use credit cards with them, but I had a bank account that was shut down after some fraudulent charges. They told me I could reopen an account anytime, but every time I tried, they just shut it down again, saying, “we can choose not to do business with anyone at any time per our contract.”
@Westin
Happens all the time. Or sometimes a specific bank faces technical issues and transactions are shut down for a few hours.
@Westin
Happened to me in 2020 when I had just two credit cards. Chase thought my credit utilization was too high, so they closed my account (which was in good standing). My credit score dropped from around 820 to 600 because my credit file was too thin without Chase. It’s good to have multiple financial institutions in case one gets closed like mine did. I have multiple cards with each financial institution to consolidate expenses and avoid logging into many different places.
@Donna
I had the opposite issue with Chase. They thought my utilization was too low, so they halved my credit limit. Definitely best to have multiple accounts with different banks.
@Westin
Reddit is full of stories about Chase closing accounts.
@Westin
Yes, I have both checking and savings accounts with two different banks as a precaution.
If Chase shuts you down, you could be in trouble. It’s best to have at least one other banking relationship at all times.
Vann said:
If Chase shuts you down, you could be in trouble. It’s best to have at least one other banking relationship at all times.
Always advisable to bank with at least one national and one local bank and to have credit cards from different institutions too.
Anecdotally, we never leave the States without at least two Visas from different banks, one Mastercard, an Amex, plus some cash and a debit card. Diversity is key for safety and access to different systems.
@Rafe
I carry two Visas from different banks and want one for a Mastercard. Does AMEX work well outside the US?
Anne said:
@Rafe
I carry two Visas from different banks and want one for a Mastercard. Does AMEX work well outside the US?
Amex has become more accepted internationally, but not nearly as much as Visa or Mastercard. No business would turn down your payment, but many dislike Amex due to high fees. Amex causes our credit card fees to be in the sub-2% range.
@Del
About 15 years ago, renting a car at the Brussels airport, they offered to upgrade if we paid with Amex. Unfortunately, I’d left mine at home. Now I always bring an Amex just in case!
Anne said:
@Rafe
I carry two Visas from different banks and want one for a Mastercard. Does AMEX work well outside the US?
Not as well as Visa/Mastercard, but it’s improving with each trip. Hotels and restaurants are more receptive than smaller merchants.
- Imagine having an issue with your bank. If your bank removes your credit line or disables your account, that could be a rough situation.
This can happen with fraud in your account, or if the bank thinks fraud is taking place.
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Establishing a relationship with your bank can help prevent identity theft. To some extent, a friend of mine was a victim but had an existing relationship that helped mitigate the issue.
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Disputes can arise. If a fraudulent charge isn’t reversed, having your checking, savings, and credit card with a big bank could mean they just take the money from your other accounts to settle the credit card debt.
Establishing a good relationship with 2-3 solid banks seems wise. Having an account with every bank is likely too much to manage.
Diversify.