2007-05-25 05:34:51 · 10 answers · asked by copland0806 1 in Business & Finance ➔ Credit
YES - having too many credit cards can damage your credit rating. Lenders will look at the credit that is available to you and could be leary about loaning you money if they think you are going to run up large balances on all those cards. However, if you think you might want to close down some of those credit lines, make sure you leave open the cards you have had the longest. Lenders also look at how long your credit history extends, so it will damage your rating if you close down cards with long history and just leave open cards with short history.
2007-05-25 05:44:32 · answer #1 · answered by jamie5987 4 · 0⤊ 1⤋
Okay. There a tons of different answers here; some are half right and others are totally wrong.
As far as your score is concerned, the answer is no. Point-wise, unused credit accounts do not drag down your score or anything like that. They don't help your score either, though. You have to actually use the cards in order for them to help your credit rating.
The way that too many credit cards can have a negative impact on you is when you apply for credit. It is true that lenders will be more cautious and less likely to extend to you a new line of credit when you have loads of cards. You look risky.
If the cards are relatively new (opened w/in the last 2 years or so) and you know you will not use them again, you may want to consider closing them. If they are old and have a long history, keep them open and use them every now and then. You don't want the cc companies to close your account due to inactivity. It will show up on your report as "Closed by credit grantor" and that doesn't look good.
Good luck!
2007-05-25 13:54:05 · answer #2 · answered by YSIC 7 · 0⤊ 0⤋
I have only seen what you decribe happen to friends who had cards and were maxed out on all the cards.
As a general rule, do not cancel cards, because that can effect yoru score.
Below is what I just did, since last year I had to get into debt for the first time in my life (medical thing).
1) Call each company up to see if you can get your interest rate lowered (only if you've been paying on time)
2) See about (if there isn't a fee) transferring some of your balances to the lowest interest rate card you have. Put your cards that you're no longer using through a shreder (but don't cancel it).
3) REquested a free credit report from one company. Then I canceled cards I never used from stores because the interest rate was very high. I sent a letter to companies asking them to "close as per owners request", which is very different than them closing them. And I have the letters as proof (in case they mess up)
4) In two or three months, I will request an other credit report from a different company and see what was updated (or not), then try to fix it (again).
5) Make as many payments -- as often as I can, for as big as I can, and get out of debt by the end of the year!
Hope that helps..
Maria Marsala
http://www.ElevatingYourBusiness.com
2007-05-25 13:01:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Closing unused accounts sounds like a good idea, but in reality it will most likely harm your credit score. There are two main negative factors. One is that your credit card debt as a percentage of your total credit limit will increase - you will look as if you are closer to maxing out your credit, and this is a big negative. The other is that you may inadvertently shorten your credit history by canceling old cards that you no longer use. A person who has been paying on time for, say, ten years is a better credit risk than one who has been paying on time for only five years. If you cancel the only card you've had for the entire ten years, your credit report will no longer have your full credit history.
2007-05-25 12:50:46 · answer #4 · answered by zygote222 5 · 0⤊ 0⤋
No, only if they're maxed out and delinquent. Whatever you do, at this point:
DON'T apply for anymore, the inquiries will drop your score.
DON'T close any of them. By doing that you lower not only your payment history you've established, but you're available credit as well.
DO use them lightly. Keep the balances low and spread out on all of them to where it's 30% of your total available credit for all of them.
DO continue to pay them all on time
DO request for a line increase periodically to increase all your limits in order to boost your utilization (total debt you owe vs. availble credit) which makes up 30% of your score.
The damage is already done by getting that many cards, it's now up to you to get the balances down on all of them as close to 0 and use them all lightly.
2007-05-25 13:01:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes because of "open lines of credit" If you do not use them then cancel all but 2. Pick 2 that have the lowest interest rate and cancel the others.
2007-05-25 12:39:49 · answer #6 · answered by Rod 3 · 0⤊ 0⤋
yes some lenders will look at it as your are over extended on credit even if the balance of all the cards is zero.
2007-05-25 12:40:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋
No.
If you handle them reposibly actually it hepls you. Because you would have a very high line of credit. And it would build up your credit history very fast.
2007-05-25 13:05:37 · answer #8 · answered by Anonymous · 0⤊ 0⤋
No. At one point I had 14 credit cards all with little or no balances and it never effected my credit.
The amount of credit you have doe's not effect your credit score, The way you use it, pay it and your debt to income ratio doe's.
2007-05-25 12:41:22 · answer #9 · answered by ? 7 · 1⤊ 1⤋
no. But opening too many accounts in short period will effect your credit score.
2007-05-25 12:38:22 · answer #10 · answered by shop2mall.com 2 · 1⤊ 0⤋