Is 3 credit cards too much?

Question

I have 3 one is a $2500, $1000, and one is $600.
So far i've only use the 2500 limit one, I've haven't even activated the $1000 card, should I just closed that card account?

The $600 would be my reward card, the gm flexible reward card. Which would help me in getting I car. So is this too many?

Answer 1

It seems Illogical, but closing accounts actually can harm your credit score.

Because one of the big items on your score is the ratio between the amount of credit you have available and the balance you've actually used. If you close any of them, you only increase your ratio, and that's bad for your score.

Also considered in your credit score is length of credit history. Since you seem to be just starting out, closing any will shorten your credit history.

Having many cards is perfectly fine. It's only when you have too much on your cards, or fall behind in payments, that your score will really suffer.

If having those extra cards around bothers you, just destroy them. But leave the accounts open.

I've got 2 Amexs, and 8 Visas / Mastercards, and my credit score is 751 last time I looked. If my balances were zero, it would be over 800 as it was before I had the balances.

Answer 2

If you have not activated the other cards they are not affecting your credit score yet, however keep in mind that every time you apply for loans, credit cards and everything else that requires your credit history your score is affected. What is recommended is that any credit cards that you have are below the 50% credit limit, which means that your 2500 cc balance should be under 1250 for it to count towards your credit positively.

If you feel like you might need any of the other cards in the future don't close them out yet, just keep them open, but not revolving. Another thing the GM flexible rewards card does not guarantee that you will or will not get a car loan, that will be determined by your timely payments on your other accounts. Also if you wish to get advice on what accounts should be canceled according to your personal info, I would recommend a software that is sold through Communityempower.com This program tells you exactly what accounts should remain open and how much to pay on your revolving ones. This is so far the only program that indicates how much your score will improve depending on the actions that you take towards your credit.

Answer 3

There will be a lot of people telling you to pay for everything in cash, blah blah, blah. If you work and can pay at least the minimum payment on time then your ok. The average persons hold 1-5 credit cards totaling $5000 max. So you are doing good as far as I can tell. I offer free advice as well as do low cost GOOD (Get Out Of Debt) relief. I have seen people with 30,000 in credit card bills and I have also advised then to take steps and to this day they cannot stop thanking me. You are holding just fine however if you hit a tight spot simply activate your 0 liability on all your accounts. Visa does it as well as mastercards discover & american express has not introduced that since their standards are high already. Good luck

Answer 4

I would say 3 credit cards is OK. Sounds like you've got the right idea-- using a regular credit card and a reward card. But do you really need the third??? If not, don't bother activating it since it could end up getting you further into debt.

Make sure you use your lower rate card for long-term purchases you can't payoff right away. Use your reward credit card for short-term purchases (since they usually have a higher APR). This way, you save money on longer term purchases-- and earn rewards off the short-term ones.

Answer 5

3 isn't too many. Credit is a fickle business. If you don't carry balances on many of them, yet have quite a few cards, they actually help your score. I have 18 credit cards. I carry a balance of very low four figures on one and under $1K on another. My credit score has jumped over the years to just under 800. Most of the cards I haven't used in years. The previous poster is correct in that if you close accounts it does hurt your credit score. Main reason I've left all mine open.

It doesn't matter if you activate the $1K or not, the account will be on your credit record simply because you have that account.

Answer 6

If you want to have less problems with finances, pay for everything cash for your whole life except maybe a house, but then try to put 50% down. I've never known anyone that does this get into financial trouble.

Credit is a tool that the US society uses to supress the masses. Let them have everything, but make sure they lose their flexibility in life .....

It's kind of like owing your soul to the company store.

Answer: keep the cards for a method of payment, but pay them off every month.

Answer 7

keep 2 credit cards and throw 1

Answer 8

Going by my experiences of regularly reading the articles at THE MOTLEY FOOL (Both USA + UK versions.. both a very highly recommended read), I'd say yes, but only by 1 card.

Answer 9

Yes. Just pay cash and stay away from credit cards all together.

Answer 10

they can be depending how much u put on all three the best bet is always pay w/cash then u won't have to worry...credit cards are dangerous!