Credit cards, some people love them, some people hate them. For some, even one is too many, and other apply for 6+ cards every year (see: credit card points bloggers). On Twitter there was a thread with Brad at Enemy of Debt about the number of credit cards that people have. That got me curious. Before 2011, I only had one credit card and in fact wrote about how happy I was that I only had one card. Then I started reading travel/credit card points blogs, and realized how with a little bit of effort, I can get some cool travel experiences for not so much money. Now I have 5 credit cards:

• Citi Thank You Card, no annual fee
• Chase Hyatt Visa, $75/year fee
• Chase British Airways Visa, $95/year fee (looking to cancel this one soon)
• American Express Starwood Preferred Guest, $65/year fee, first year waived
• American Express Hilton Honors, no annual fee

I just applied for my sixth card, the Chase Sapphire Preferred Visa for it’s 50,000 points bonus and the Ultimate Rewards network. Because I pay for almost everything on credit cards, I look for ones that will give me great sign-on bonuses and everyday rewards. To make them worth it, I practice SAFE credit use – I pay off my balance every month (OK, I’ve forgotten once or twice, but I call the credit card company to request a courtesy refund of the late fee, which I almost always get) and I keep a low credit utilization ratio. That’s not hard, because my total available credit tops $40,000, and the most I ever have on there is maybe $5,000 – and that’s with a few big purchases – before I pay off the monthly balance.

I wouldn’t keep signing up for cards if I expect to take on a loans in the next two years, but since I am still several years off from buying a home, and my credit is strong, I can take the credit inquiries that card applications “cost”. To keep track of my cards, I have an excel spreadsheet with the card’s name, the minimum spend requirement to hit sign-on bonuses, and the due dates. In addition, I try to use all of them at least once every few months so that I have some sort of activity on there.

How many credit cards do you have? How many do you think is too many?

There’s no better way to get better at negotiating than… negotiating, right?  Today I called up my credit card company to ask for a lower APR. My current rate is 19%, which is extremely high. Now, I have very good credit, I pay off my balance in full every month, and I have been a customer in good standing for the past 3 years.

Here’s how the conversation went, and please, tell me what I could have done better and how I can improve next time.

With representative

I said to the first representative, “I’d like to get a lower APR, please. My current rate is really high and I’ve been a great customer la de da… “  He told me that my rate at 19% is the lowest rate the company offers and there’s nothing he can do. I remained calm and said that since I am such a good customer, I really want to work something out. I asked him to transfer me to his account manager / supervisor.

With the account manager

The account manager also said that the rate I have is the lowest rate he can offer me. I reiterated everything I’ve said before: customer in good standing, I enjoy being with this company, I have gotten offers for lower APRs from other companies, I just want a rate that is more competitive.

He reminded me that since I pay my bill in full every month, my APR doesn’t matter (which is true. And which I knew.) But it’s the principle of the matter. I said that I understand, but the APR is still too high for my liking.

Finally he said that he can offer me a promotional rate of 14% for 6 months, but there is nothing else he can offer me. So I took that rate and felt like a chump.

I KNOW he has lower rates. But even though this exercise wasn’t the success I had hoped for, I learned a few very important things: I have a tendency to ask for permission at the end of asking – as in, “I’d like a lower APR, if that’s possible.” Or, “I’d like a lower APR, if that’s okay.” Not. Good.

Readers, please tell me how I can negotiate a lower credit card APR next time.

And give up credit cards forever?

Like many Americans, I use credit cards for most of my purchases. Credit cards are a helpful financial tool for me because of these benefits:

• Reward points (I use mine to get Sephora gift cards)
• Ease of online banking / record of purchases
• Fraud protection, especially in large / online purchases

However, with the new consumer protection bill passed in May, will credit cards become less attractive to consumers?

Right now, no-fee cards are common, especially for consumers with solid credit background. But if credit cards start charging an annual fee, I would definitely reconsider my decision to use credit cards. After all, every time I use my card, the merchant will pay 1%-2% of the total purchase price to a credit card company. Even though I don’t carry a balance, credit card companies still make money off of my card use.

I may have to live with reduced rewards points (although I hope not!), but my selfish hope is that credit card companies continue to offer no fee cards for consumers. Although a credit card-free existence works for some bloggers (Brad of Enemy of Debt, for example), giving up credit cards for good will be very difficult for me. I hate carrying cash – it is unhygienic, difficult to keep track of, and easy to lose. I don’t think I’ve had any cash in my wallet for over a month.

Can you / do you live on an all-cash system? Can you give up credit cards for good?

***I’m mentioned in the Carnival of Personal Finance #233 hosted by A Gai Shan Life.

Based in part on several reader’s good experience with American Express overseas, I’ve decided to get an AmEx as an emergency credit card.

I didn’t realize that AmEx’s ”Blue” line of cards are so sleek and attractive (I’ve had a couple of AmEx corporate card accounts that I’ve since closed). Card appearance didn’t play a part in my decision, of course, but it’s nice to have a pretty card tucked away somewhere in case my primary card is lost or stolen.

The entire application process was very easy: I applied online, an AmEx representative pulled my credit report and confirmed my address, and approved me on the phone. A card was mailed to my home within 7 days. It was almost too simple (i.e. though the application asked for employment / income information, there’s no way of verifying that information). But I suppose that’s the power of the credit report.

Most financial experts recommend having two to three credit cards – one or two primary card and another card in case something happens to the primary credit card (lost, stolen, etc.).

For my post-graduate life, however, I’ve only had one credit card. Although I’ve been thinking that one card isn’t quite prudent, I never actually applied for a second card.

Here’s why I love having only 1 card:
1. Ease of tracking: One card = 1 website, 1 deadline, 1 credit limit, 1 username, and 1 password to remember.

2. Concentration of reward points: I put all credit card purchases on 1 card, so I accumulate points relatively quickly. Eveyr 10,000 points = $100 Sephora card!

Here’s why I think I might need another card:
1. Emergencies happen: if I lose my credit card now, I’ll have to wait for the company to cancel and mail me a replacement card. In the meantime, I’d have to rely on my debit card (which I don’t like to use for purchases).

2. Better credit score (?): If I get another credit card, my total available credit will be much higher, but my total credit use will still be the same. So, my percentage of credit used will decrease, and that should have a favorable impact on my credit score.

What do you think? How many credit cards do you have?

I was talking to a friend about this, and I realized that I like to “spread out” my payments. For example, if my credit card bill is due on the 30th of every month, I like to make smaller payments throughout the month instead of the payment-in-full on the 29th or the 30th.

If my statement says $800, instead of paying the full $800 on the 30th, I might make 2 payments of $400 sprinkled throughout the month, or a payment of $300 and a payment of $500.

This method works better for my cash flow, as I don’t just look at the pile of money in my checking account and think, wow, I’m really flush, when really I just haven’t transferred that money to the CC yet.

What do you do?

I paid my last credit card bill late by 4 days… things were so busy that it just slipped my mind, even though I had a post-it RIGHT THERE on the calender to remind myself to pay the bill.

So now it’s $12 of finance charges and $39 (!!!) late fee. Is there anyway for me to call the credit card company and explain, nicely, that I’ve never paid my bill late before (and always in full), that it was a one-time occurence, and will they PLEASE just give my money back?