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Weekly Tips

Weekly Tip: Limit the number of credit cards you have.

Although there is no set number of credit cards you should have at any given time, it is important to keep a limit on the number of credit cards you have open. For one, having too many credit cards can get complicated fast. With all the extra papers and monthly statements, you can easily end up making late or missed payments. Plus, you’ll be racking up a lot of debt. 
Also, every time you open a new credit card, your score drops a little. So, if you open a lot of credit cards, your score can take a significant hit. And lenders will see your multiple open accounts as suspicious. Even if some of those accounts have zero balances, lenders will question what could happen if you maxed out on all that plastic. You will not look financially responsible, and it may affect your ability to get loans, other credit cards, and more.
Lastly, it is important to use your credit cards in order to build credit. With lots of credit cards, one or more of these cards may end up just collecting dust. Letting these cards waste away will be more harmful to your credit score than just having a few good cards and using them consistently.
on Wed, 2014-04-09 13:45