How many credit cards is consider too many, and how will this effect my credit score?

Answer 1

From my research and personal experience, you should try to keep it to 3-5 credit cards.

Spiff is a smart guy, but I gotta disagree a bit with his answer. One of the things your credit score looks at is the amount of available credit. If you have a lot of credit cards, you will have a lot of credit not being used. That scares the heck out of a potential lender, because if you decide to run up those cards you will drastically hurt your debt.

As for some of the responders....just because you can't handle your credit, or maybe mishandled it and got in over your head.....does NOT mean everyone is as stupid as you!

Answer 2

Strictly an opinion as how many are "too many". Me, I'd say 3 or 4 minimum and NOT more than a half dozen. Here's why.

In the old days, gas stations and dept stores would only accept their own cards, so you needed several for that reason. Now nearly everyone accepts the major cards, so why tie up your credit in a few cards that have limited use? Besides, stores that issue their own cards are doing it because there's lots of money to be made in issuing credit cards. Kinda says something about YOU being the sheep while THEY are the ones shearing you.

As for having more than 1 major card, not all places will accept all cards. So it's a good idea to have one of each of the major ones, so when one isn't accepted, another one is.

Also, if there is a problem, like one major card processor has a modem line down or a dispute about a payment on 1 card, you can still use a different card.

And I use a credit card for EVERYTHING. That way I can track my spending, I have a method of dispute with defective products, and really, WHAT difference does $1 or $10,000 have on a credit card machine? And then I pay most of it off each month just as if I'd spent cash.

(Yes, I have a business and I accept all major cards, and the difference I pay the processing company for tiny amounts is so negligible that it's worth doing it. Really, I prefer all my customers to use credit cards.)

Answer 3

It isn't necessarily the number of credit cards it's the payment history and the balance. You need a balance under 30% and under 20% is better. If you make your payments on time each month, you pay no interest and you build credit history as well. When looking at your credit report, the total available credit is used to determine a portion of your credit score but having the balances low and payments made are more of a plus. Honesly I think all department store, gas credit cards, specialty credit cards are a real waste. I try to keep about 3 of them AMEX and a couple of Visa / Mastercards. I also use my Bank Debit Card instead of checks. People sometimes look at you strange when you pay a $8 charge with a credit card but at the end of the month, I can go online and make one payment for all my monthly charges versus writting 50 checks.

Answer 4

To get the best credit score and profile you need 3 credit card accounts (revolving) with balances below 30% of your limit and 2 cars, boats, homes, furniture or personal accounts (installment) all with good long pay history's.

Now, I am going to get so many thumbs down for saying this but I don't care because it's the truth. The number of credit cards you have doe's not matter, how you manage them is what matters.

I once had 14-credit cards and my score was over 750 because I paid them in full every month. Now I only have 8 and my score is still over 750 for the same reason.

OK Studley, you know very well that having high credit limits and low balances increases your score. A full 30% of your score is based on debt to credit ratios.

Answer 5

As others have pointed out, it's not the number, it how you pay them and keeping the balances below 30% -- paid in full each month is even better.

Personally, I think it is stupid to collect a bunch of credit cards just for the sake of having them. You have to monitor and secure those cards. All those cards just have so many opportunities for problems.

I recommend not more than 2 major credit cards. Only keep store or gas credit cards if you have some special situation.

Answer 6

More than the 2 that I own would be to many for me. Everything is paid off every month, I do not have dozens to keep up with and they meet my needs.

SPIFIMAN1 is correct in that if you have excellent credit the number will not hurt you so much unless you get wayyyy up there the the potential debt to income might ouch.

I also agree with bdancer222 in his/her analysis.

Most people just haven't the discipline not to run each sky high then come back complaining about not being able to make the payments.

Answer 7

For me I am never really using credit again. You can find lenders willing to look at other factors, such as on-time mortgage or rent payments, for the past couple of years to determine your credit worthiness. I much prefer to pay for things in cash.

Now you will get people saying, "Well you need at least ONE for emergency purposes." Why not save the amount of money you have in credit and put it in to a Money-Market account that allows for check-writing and cash withdrawls? So if you have a $1,000 credit card, instead save $1,000 in cash as an emergency fund. That way while the money sits there you get paid interest.

Answer 8

More than one is too many...Credit cards should only be used for absolute emergencies and not for everyday use. Just think, whatever you charge, you are paying that back + 24% interest. If you have A credit card and use it, pay it off as soon as possible to keep the monthly payments down and the interest down.

Answer 9

right this is a few thing to evaluate that no person has stated....as that's a variable which will influence your determination. it could help you or harm you reckoning on the place you stand interior the credit pastime. Open strains of credit that are actually not getting used nonetheless count style in the direction of the "ability" you may desire to spend as much as at that ingredient. enable's think of your debt to earnings ratio is at a point 50% top now. you have 10 open strains of credit/loans accessible. 3 of them have a nil stability and are not getting used, and those have a credit line of 2k each and every. This little greater 6k of ability credit/debt you may desire to get right of entry to and rack up is taken under consideration by ability of lenders while utilising for a clean mortgage. It takes away out of your score to have them putting open throughout the time of the score calculation for a clean mortgage. NOW previously you close up any of those, make yet another determination. lenders prefer to work out sturdiness or credit historic past with a employer. So start up with enjoying cards and money owed (as somebody stated formerly) that the two do not checklist to the bureaus or have not been open as long as others. The longer of a historic past you have with companies, the longer on the comparable handle, the longer run of on time money displaying up is all solid to them! SO THEN once you're rather particular you is basically not making use of or do not choose those dormant money owed it is going to sweeten the deal interior the eyes of ability lenders by ability of upping your score somewhat. observe* New tips about credit comments can (supply or take) 30 days to look so plan forward if it extremely is a crucial mortgage which you would be able to desire to up your credit for, meaning, close them various weeks earlier than a clean mortgage utility. -------the final analysis----------------- shall we face it, lenders and lenders are interior the pastime to make money. in case you have not have been given any mastercard money owed or balances on them, this implies you're actually not paying pastime. So, how can they make any money off of you? it extremely is easily valuable, in a twisted form of credit way, to maintain some balances on enjoying cards....to coach that they are able to make some money off of you...to envision a fee historic past so as that they are able to have tips from which to base your re-fee habit and as a result, set up a credit

Answer 10

Find very useful info and tips on getting and managing credit cards on http://creditcardmanager.credithelperhome.com