Is having too many credit cards bad?

Question

I like to take advantage of the cash back of major cards and coupons that many department stores give. I have about 8 different cards. Total probably around $20k in credit limit. Is it bad to have that much credit? I have no problem at all controlling my spending and have no debt-everything is paid in full every month. Some of the card's promos have ended and I can cancel a few but does this look bad also?

Answer 1

$20k is not that high for a combined total in credit limits - unless you only make $5k a year.

As long as a person takes care of their credit, having limits that meets yearly income or even exceeds yearly income could gain that person not only high scores but also creditors offering products with excellent terms attached.
Again, as long as a person is taking care of their cards by keeping utilization down, paying on time (preferable in full), never going overlimit, etc. (which is what you say you are doing)

The "only" time you should really carry a balance and make payments on a credit/charge card is when you have a 0% interest promo for x number of months.

Since you state that you have no problem controlling your spending and you pay in full every month, you are proving to all creditors (current and future) that you are a good risk.

I wouldn't recommend cancelling the cards that the promo's have expired.
You might keep the cards locked up and pull them out every once in a while, make a small purchase then pay when you get the statement. Allow them to continue to raise your scores.

It sounds like you should have a decent credit history, by what you have posted. So closing the occasional card should not have a major impact on your scores

But opening cards for the promos, then closing them after the promo's expire will show an unstable credit history and will eventually send red flags to any future creditors. You will probably find it harder and harder to be approved even if your scores are high.

Answer 2

It can be, but you seem to have it under control. I've done some reading on it and no you shouldn't. What will happen, it will lower your debt/income ratio. So even if you continue doing what ur doing and controlling it, keep'em. If you watched your credit score, it should have dropped when you canceled those that you did.

Answer 3

It can be. Your credit to income ratio is what could mess you up. If you make 25K a year and have 20K in credit cards available to you, you look like a high risk. If you should fall on hard times you could quickly put yourself in a hole and not be able to pay your creditors.

So, yes, having too many credit cards or too much credit available makes you look like a high risk. This can lower your credit score and make banks think twice before giving you a loan.

Canceling cards wont generally affect your credit score.

Answer 4

Yeah kinda bad to have many credit cards. You tend to spend more knowing your 20K limit...
If you can control your financial activity, you may use a debit card instead :)

Answer 5

I'll say it has it's good and it's bad, to much credit can be just as bad as not having none at all, but some people would love to be walking in your shoes right now, i have myself 1 good card and that's all i need. need a shopping buddy lol

Answer 6

Well its not good to have too many if youu cant pay them off but if youu pay them off every month and never get behind and go crazy with the credit cards then its fine believe me ive learned my lesson :]]

Answer 7

If you'r confident you'r never gonna get all those credit cards stolen and you'r using them wisely then why would there be a problem?

Answer 8

yes identity theft is all over the place. if you do have a lot of cards then you should know exactly which ones you have made and which ones thieves might have made to steal your identity and your money.

Answer 9

yes. Even having 1 card is bad. Think about it. You're spending money that isn't your own.

Answer 10

As long as you're paying them ON TIME, I think it can actually HELP your credit. . . maybe