Does having lots of credit/store cards affect your credit worthiness positively or negatively?

Answer 1

Here is how it works. You can have as many as you want, but- never charge over 50% of your max. Ex- Your limit is $2000 on a card-don't charge over $999 on that card. If you do you start losing "points" on your rating. Trust me, I know lots of the "tricks" to keeping great credit. I have an excellent credit score and have had my credit established over 20 years. And of course make payments on time.

Answer 2

That depends on a few factors.

How much is your total line of credit on all cards combined?
This could affect your debt to income ratio

What percentage of the balance do you carry on the cards from month to month?
This can negatively affect your credit score.

The newest FICO scoring model allows for 9% of the balance to be carried month to month, without paying off the card in full. In the past, over 25-30% would have hurt your credit score.

Lenders and the gov't dont want to many American't carring too much debt. Since foreclosure are thru the roof, and the average debt each of us carries has gone up so much, they are tightening the scoring associated with carrying debt.

It's good to have 3-4 credit cards, as this will help you build a solid credit history.

The newest credit scoring model doesn't allow for many late payments. Derogatory (bad) items on your credit will cost more point now than ever.

I hope this helps.

More information can be found at http://www.rayscredit.com

Answer 3

Well Lornah, your question is a bit too generic and broad. Having lots of cards in and of itself will not negatively or positively effect your credit worthiness. Your income, the amount of debt you are carrying on those cards and the percent of the credit limit on each card as well as the total percent to limits of the cards combined is what affects your credit score/worthiness.

People with the best scores have 30% or less of their limits used, up to 50% is still ok, as you go over 50% and the farther you go over 50% the more it has a negative effect, over 75% increases the negative effect.

So you see, it isn't a simple yes or no answer to your question

Answer 4

There are several schools of thought. Basically it's more how you pay than the number of cards.

Personally, I think having a lot of credit cards is stupid. You have to monitor and secure them. There is just too much opportunity for problems. I recommend keeping the two oldest major credit cards without annual fees. Close all the store and gas charge cards unless you have some special reason to keep them -- they really don't add much to credit worthiness anyway.

Closing the cards will cause your score to dip but it will rebound quickly. Of course if you are planning to buy a house, wait till after you buy to close the credit cards.

Answer 5

It could be negative. It's good to establish a pattern of repaying your debts, but don't run the risk of "too much of a good thing." If you have many open credit accounts and/or credit from certain lenders (like finance companies), your score may be reduced.

Not only do lenders want to know how much money you owe, they are also interested in the ratio between outstanding debt and available credit. In other words, the closer you are to "maxing out" an account, the more negative the impact on your credit score.


Below are some tips on maintaining a good credit rating. http://www.salliemae.com/before_college/planning-wisely/debtsavvy/repayment/maintain_rating.htm

Answer 6

It affects you negatively particularly if you have high balances on them. Store credit cards are the worst. Generally no more than 2-3 credit cards that are kept below 80% of limit. Pay off and close the store credit cards. And make sure they are closed by checking a couple of months later. Stores are notorious for not closing them.

Answer 7

Very positively. It's a good thing. Were you thinking that the right way to handle a credit card balance is to pay the minimum each month? No. If you did that, it would take many years to pay off a substantial balance. (Details depend on interest rate and minimum payment rules.) Truly responsible users of credit cards pay off the entire balance each month and never pay any interest. This gives excellent credit scores.

Answer 8

If you have a lot of store cards and has a track record of always paying on time then this actually increases your chance of obtaining credit as it shows the company who are considering giving you credit your good payment history.

The only time it will affect your credit history negatively is obviously if you have missed or made late payments or you owe more out in credit than you have coming in (income), this is worked out when you apply for credit and give them your ingoing/outgoing expenditure

Answer 9

Lornah Miller

As Long As you pay in time You Good , Also never charge

over 50% of your max. Okey . If you feel still in need for more

details go to Only Best Deals , I am Sorry I cant post the link

here so open google and type :

Only Best Deals

The First line open it and you there , Use the top search box

there which must lead you directly to your answers about how

to Support Your Credit Score & Increasing Points ,

Good Luck , I hope this help You .

Answer 10

Absolutely. You need no more than two credit cards that you dutifully pay "on time." Then you will maintain a positive credit standing. Peace and God Bless.