Advice Fact List

Advice: Credit Cards 101 & 202

Comments (2)
  1. Jerry says:

    “There is no such thing as too many credit cards from a scoring standpoint.”

    DEAD WRONG. I worked for a major equipment company on both consumer and commercial credit in the US and Canada. If you have 1-2 cards with a limit of $5k each and a zero balance, no red flags. However if you have say 10 cards with limits on each of $5k (even with a zero balance) and your life busts up then you could cash advance $50k in revolving credit overnight. Too many cards with monster limits CAN hurt you. Maybe not with all banks, but certainly with more cautious lenders.

    You need to watch your score and your total available credit. Hard when banks throw credit limits at you.

    1. Jerry says:

      Sorry, I mis-represented… It may not hurt your raw FICO score, but the big credit scoring companies like Transunion and Equifax provide a report, not just a raw score. It will hurt with them on a note like “too much available credit” especially if you have a crappy payment history in any way.

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