How many credit cards do you have?

Question

How many are too many -- to start hurting your credit?

Answer 1

It depends on the credit company of what amount of open account is bad. There are some that say one is all your need. However, you can have one card and still have lousy credit just as your can have six cards and have excellent credit.

I had a mortgage broker look at my finances in preparation for buying a house. Not only did they consider how much debt I had and how much income I generated, but also how much I was paying on each account (i.e. credit and loans payments).

I recommend focusing on having credit cards that are worth keeping and focusing on keeping those cards in good standing to help my credit. I recommend staying a way from proprietary cards (i.e. department store cards and gas cards). They tend to charge a higher interest and you can only use them at those stores. There is an argument that those cards are not valued as highly as the traditional Visa or Mastercard. I tend to believe this argument because Visa and Mastercard gives you the freedom to purchase anywhere and you have the option of cash advances. That shows you are more responsible if you maintain a good standing with all that buying power.

In addition, keep the balances with the cards you have under 25% of the credit limit. Popular believe is 30-33%, but studies show that 25% is a better number just incase you chose to use the card.

Answer 2

Personally I don't have any. I have a debit card with online access to transfer funds from savings to checking if I need additional funds.

You have to be very careful when you start to parlay into the credit card world. If you aren't level headed you can get yourself into a lot of trouble. Borrowing from one just to pay the minimum balance on another one. I've never had a credit card but I've read and heard many horror stories. The problem is that credit card companies will give cards to anyone! They especially target young people and people with poor credit history that just come off bankruptcies. Look at the interest rate on your cards if you have any. Look for the lowest interest rate. If you're credit is good it won't hurt you to have one or two cards if you don't over exceed your earnings level. Be cautious, level headed, and aware. If you have a lower interest rate on one card see about transferring the balance from a higher card to the lower one. Be careful this time of year. The season itself and the retailers suck people in to buy, buy, buy, and a lot of people use plastic and are stuck paying for Christmas beyond the next Christmas. Good Luck!

Answer 3

I have just one physical card.

I also have an overdraft protection/credit line attached to my bank account. But that doesn't work the same as a regular credit card. It just means that if my bank account runs bone dry, I have $1000 in my "reserve credit line" that can help cover me. Then I have to pay back whatever amount I dipped in, the same way I would a credit card balance.

Answer 4

There are too many factors to answer this question. The credit limit on each card is your total indebtedness though (because you could get a loan today, and run them all to the max tomorrow).
1. income and net worth
2. credit limits on each card
3. personal credit rating
4. balances
5. what is being purchased (if a home, the mortgage co. will tell you if you need to close any to qualify)

Answer 5

Your question is a good one. Many folks don't realize that it's not just your balance that can hurt you. Each time you apply for a card, it affects your credit score.

I have three cards of my own (one is a store charge plate which has probably expired from lack of use), then one company credit card.

Answer 6

even one is too many.
never use credit card as additional source of funds.

Use debit cards with prearranged overdraft limits. make sure you never have to pay any interest or charges.

Answer 7

1 it's the right # to have.