Too many credit cards

Guest 0.10 Dollars($)

Hi guys! do credit card companies stop issuing cards if someone has too many? I wonder how many credit cards is too many for a creditor to approve me for a loan or a credit card? does too many cards affect one's credit rating? Any thoughts

jbarto65 · Joined: 04 Nov 2007 Posts: 592 5.03 Dollars($)

Joseph, the max amount of cards that I would hold a one time might be two, no more than that. I don't even have that many right now, I have my debit, which doubles as a mastercard and a visa card that I only use for travel purposes.

How many cards do you have at the present time and what are your plans of eliminating this debt?

I am sure that you will get lots of good advice here on this issue. Have you also tried the debt and credit forums? That would be another great place to post a question like this and get some good responses.

gmakerley · Posted: Wed Feb 13, 2008 1:32 pm Post subject:

maximum amount of cards is whatever you are comfortable with and can afford to pay. of course, that varies from one person to the next. the best thing you can do in this life for your credit is to pay your account(s) in full every month, so as to minimize the amount of interest you pay.

yes, credit card companies pay attention to your credit report - they will suspend credit at times, reduce credit limits, increase credit limits, and much, much more - all based on your credit performance.

jerry · Posted: Mon Feb 18, 2008 5:15 am Post subject: RE: number of credit cards

Hi Joseph,

Too may credits would be a headache if one doesn't have cashflow coming in proportionately. I would prefer 2 at a time because I do have other debts to pay off.

banker0679 · Posted: Wed Feb 20, 2008 12:54 pm Post subject:

Debit cards do not report to the credit report agencies. Even if it has the visa/mastercard logo on it.
Most lenders look for 3 tradelines that have been in good standing for 24months. 5-7 tradelines that have been opened for 3-5yrs with good standings will help you get any loan needed.
Tradelines are mortgages, 2nd mortgages, auto loans, credit cards, student loans, store cards, gas cards, unsecure/secure installment loans, etc. Basically, anything reporting on your credit report can be viewed as a tradeline.
I would recommend a diversity of 3-5tradelines that have been opened for 24months.
Credit cards use stated income for qualifications, and do not verify income for their applications. Your rate is determined by your credit score, and if you're maxed out with other cards or not. Having too many credit cards will not hurt you in the long run, but can hurt you if you applied for them altogether in recent weeks. When a mortgage lender views your credit report, and your income, they will view this as 'overextended' credit.

jeffselan · Posted: Wed Feb 20, 2008 3:45 pm Post subject: Banker was right on.

Another thing to consider, make sure you are choosing wisely on your lines of credit. 5 to 7 tradelines are smart as far as demonstrating good pay history and credit worthiness.

However, opening a large amount of credit cards is truely not in your best interest due to the likelyhood of you becoming overextended or a victim of human error. ( missing a payment )

I would advice if you have a large amount of credit cards, combine them, use the cards with a lower rate and close high interest rate cards like retail store, gas, and convenience store cards. Those are primarily used to begin your credit history but really shouldn't be used long term in my opinion.

Better to have two to three credit cards and maintain the good pay history than 15 to keep track of.

Don't load yourself up too heavy.

Guest 0.10 Dollars($)

thanks a lot banker and jeff. I have actually missed a payment a few months ago and have not paid it till now. does a single payment have too much of negative impact on my score?

banker0679 · Posted: Thu Feb 21, 2008 11:43 pm Post subject:

I have heard that FICO is allowing 1 late payment that wont severely affect your score, but more than 1 can be a detrimental factor.

It's also hard to tell if we dont know your full credit report.

bobbybarger · Joined: 22 Feb 2008 Posts: 8 4.69 Dollars($)

As much as 1-2 30 days lates can be detrimental to your credit and ability to get certain cards. Having too many cards is no issue as long as you aren't using them all and running up the balances.

Having alot of available credit is a good thing. If a lender says you have TOO much credit, they have no idea what they are talking about and have no credibility. Move on.

banker0679 · Posted: Fri Feb 22, 2008 7:49 am Post subject:

Having alot of available credit is a good thing. If a lender says you have TOO much credit, they have no idea what they are talking about and have no credibility. Move on.

This is wrong, and I'm not sure if you're in the lending industry.
I have many borrowers that need to give a Letter of Explanation due to have too many credit cards open......especially recent ones. If they're a few years old then it's not a major case.

fireyone_02 · Joined: 20 Mar 2008 Posts: 267 -0.19 Dollars($)

I would settle for two at the most especially if you have a car loan or mortgage. What would happen to your credit score if for some reason you became ill or lost your job. If they all carry balances and monthly payments you may end up trying to figure out which one to pay or any at all. This could quickly ruin your credit. Believe me been there and done that. You never know what life has in store so if you can pay off any balances with in a month or two of charging. Not only is it safer it also saves money in interest charges.

jbarto65 · Joined: 04 Nov 2007 Posts: 592 5.03 Dollars($)

There is a difference between credit and debt, they will often, almost everytime look at your income/debt ratio but I don't think they look into your credit/income ratio, are you sure that you understood them right?

fireyone_02 · Joined: 20 Mar 2008 Posts: 267 -0.19 Dollars($)

Must not have. I always thought that when they looked at your credit for a loan they always took into consideration the amount available on credit cards whether or not you had all of the credit line used or not. Is this true?

jerry · Posted: Fri Mar 21, 2008 10:09 am Post subject: RE:

Hi fireyone and jbarto,

The lender may ask about the credit limit because after all you'll have to pay the cash you take out and he needs to know how much you can take out in all. The available credit limit will in a way reflect your credibility as a borrower. In short, he needs to know how much relaible other creditors think you are and how well can you manage credit.

Thanks,

Jerry.

fireyone_02 · Joined: 20 Mar 2008 Posts: 267 -0.19 Dollars($)

Thank you for clearing that up for us. I was pretty sure the credit line amount came into play somewhere along the line.

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