I have about 10, but they're all VERY diffferent. charge card, gas card, rewards card, store card, debit, on and on.
The ONLY negative is that I opened them all within a year's period, which I'm sure is destroying my credit score.
However, is there a limit as to how many you can have?
I mean there are THOUSANDS of lenders out there, and many cards especially nowadays.
Having ONLY one or two credit cards in this day and age, I'm sorry, but is unrealistic and backwards.
The good ol'days of saving, paying everything in cash, and what not are over.
How can having multiple accounts hurt your score, when that just proves that you can handle more (that is if you actually can handle it), and it means you have more money to work with.
Even though this proves a risk, if you go years without abusing it, isn't that proving that you're a great candidate to do business with?
Seems common sense to me.
Anyways, someone with some knowledge please respond.
2007-09-29 16:06:59 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
I'm NOT a fan of the one or two cards theory, so if you are don't tell me how I should cancel my cards because I won't and I don't agree or believe in that.
2007-09-29 16:07:51 · update #1
It's only a negative because they are recently opened. Recent applications for credit (reported on your credit report as "inquiries") hurt your score for about 6 months, and although they stay on your report for two years, after the initial 6 months they don't hurt your score.
Other than that, there is nothing negative about having a lot of accounts other than some lenders will decline to issue you credit if they feel you have sufficient credit lines for your income. Others won't care. There is no "limit" to how many accounts you can have.
A plus to having multiple accounts is that your "utilization" - the amount of available credit you are using - will be low if you don't abuse it.
If you avoid applying for new credit for at least 6 months, your credit score should recover nicely, and then improve from there as your utilization stays low.
2007-09-29 16:20:50 · answer #1 · answered by likepepsi 7 · 0⤊ 0⤋
Having too many credit card will lower your credit score but by very little. What hurts most is that you have lot of recent new credit card with low credit limit and have high balance. Best is to have 3 credit card. It can be any major C.C. and retail card combine. Also you need long history. Keep the cards that you had with you for the longest time. Need to have high credit limit. Longer you had c.c. higher the credit limit should be. If not then ask your c.c. for higher limit. Do not have high balance in just one card. Credit rating agency like to see small balance spread out to many different card. Better if you have NEAR zero balance. If you use your card and pay full balance each month, then that is best.
2016-04-06 07:38:00 · answer #2 · answered by Aline 4 · 0⤊ 0⤋
It's not how many cards, but it's what your total credit limit exposure is.
If each of your cards has a $10,000 credit limit, then your credit limit exposure is $100,000. If you make $200k per year, that's no big deal - if you make $50k per year, that nails your credit report because it shows you can get into trouble pretty easily.
If you want to have many cards, trim your credit limits on each to what makes sense. Remember, if you max a credit card out, that also counts against you - you should never have more than 50% of your credit used on a card. And a credit report can be pulled any day, so just because you haven't paid your bill yet, it still shows that balance as pending.
2007-09-29 16:11:33 · answer #3 · answered by Anonymous · 1⤊ 0⤋
I rather chase the bigger cash backs and have ended up with a large pile of cards .
I never have any balances carry over so I never pay interest ,
But my FICO dropped and the Experian rep thought maybe Fair Issac figures too many cards are a risk .
He was not sure , but I have not yet asked Fair Issac for a read .
But , maybe , too many throws a money wrench in the formula .
>
2007-09-29 16:12:17 · answer #4 · answered by kate 7 · 0⤊ 0⤋
No idea whay you would want to keep up with that many bills. I have an AMEX and a VISA. I use them for emergencies and when travelling on business. I pay them off in full every month.
Not sure why anyone would feel they NEED more than that.
2007-09-29 16:11:21 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I think you should it use up to half of your credit and dont hurt your score, but dont put them to the limit
2007-09-29 17:33:01 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Simply--yes.
2007-09-29 16:14:19 · answer #7 · answered by bubblestea 4 · 0⤊ 0⤋
not if you charge courses with the Church of Scientology
2007-09-29 16:09:23 · answer #8 · answered by Anonymous · 0⤊ 0⤋