Risks of Having Too Many Credit Cards

Risks of Having Too Many Credit Cards

Risks of Having : There’s a right number of credit cards to have and it varies from person to person. Having too many cards can affect your credit score, but the specific number remains a secret. It’s up to you to manage the number of cards you have and keep your cards to a minimum. Having too many credit cards is a bad thing and here’s why.

It can affect your credit score.

We’ve already mentioned that having too many credit cards can hurt your credit score. The problem is that we don’t know just how many cards you can have before your score starts to suffer. So, it’s up to you to keep them to a minimum. You can’t necessarily close a card because you think you have too many; that could hurt your score, too. The key it to consider how many you have before you apply for a new one.

You could create too much debt.

The more credit cards you have, the easier it is to run up credit card balances that you can’t afford to repay. No one expects to create excessive debt, but when you have the credit available and ready to use when you don’t have cash available and ready to use, it’s easy to just swipe your credit card. Keep your cards to a minimum to remove the temptation of running up a high balance.

It’s harder to manage your credit card payments.

The more credit cards you have, the more payment dates and payment amounts you have to keep up with. If you have just one or two cards, you’ll only have to make that many payments each month. If you have several cards, you can better keep up with them all by creating a list of the cards, their balances, the due date, and the minimum monthly payment on each.

You may not get approved for a mortgage.

If you’re going to be applying for a mortgage soon, you’ll definitely need to take inventory of your credit cards. Even those without a balance can keep you from getting approved for the mortgage. That’s because mortgage lenders not only consider the amount of debt you have, but the also the amount you could have if you charged up your credit limits.

You may not get approved for a new card.

If you apply for a credit card when you have too many cards, your application could be denied. You may not find out on the spot that the reason is that you have too many cards, but you’ll learn later. Card issuers are required to send you a letter when your application was denied letting you know why you were turned down. It’s for the best that you don’t get another one. If you already have more than you can handle, putting another one in the mix will only lead to disaster.