topic Re: Is there a such thing as too many cards? in Understanding FICO® Scoring

Is there a such thing as too many cards?

EaglesFan2006 — Mon, 03 Dec 2012 03:40:48 GMT

Just a general question as I consider long term planning for things like mortgage and what not...

Is there a such thing as too many credit cards, assuming you have or can achieve a healthy util? Right now I have 5 cc and 2 store cards, all in healthy standing. Util is good but can be better, and I have time to do that. My most recent card is 6 months old, and I'm at least a year from any potential mortgage. Most recent EQ score was 650 in October, if that matters.

Re: Is there a such thing as too many cards?

adavis425 — Mon, 03 Dec 2012 04:01:36 GMT

I think as long as you can manage them without missing or late payments, you should be fine. Only you know how many is manageable for you. As far as CCCs go, I suppose some may deny credit based on available vs used credit. I have read stories of denials based soley on having too much available credit. They want to see that you are actually using the credit you already have before extending more.

Re: Is there a such thing as too many cards?

thom02099 — Mon, 03 Dec 2012 05:23:31 GMT

adavis425 wrote:
I think as long as you can manage them without missing or late payments, you should be fine. Only you know how many is manageable for you. As far as CCCs go, I suppose some may deny credit based on available vs used credit. I have read stories of denials based soley on having too much available credit. They want to see that you are actually using the credit you already have before extending more.

If you search the topic here, you'll see prior posts that indicate members here who can manage a myriad number of cards, sometimes 20-30-40 or more. It's all a matter of what you think you can handle responsibly.

Having said that, in order to get to that number of cards, generally speaking, one has to exhibit prior positive experience in managing a handful of cards before moving on to even more cards. And one must also have the income to support additional applications, and low utilization.

Re: Is there a such thing as too many cards?

EaglesFan2006 — Mon, 03 Dec 2012 12:50:59 GMT

Thanks... So basically a lender such as a mortgage co won't be turned off by number of cards as long as paymen history, age, and util are in good shape. That's good to know because I have plenty of time to get util lower and to stay lower

Re: Is there a such thing as too many cards?

thom02099 — Tue, 04 Dec 2012 16:26:39 GMT

EaglesFan2006 wrote:
Thanks... So basically a lender such as a mortgage co won't be turned off by number of cards as long as paymen history, age, and util are in good shape. That's good to know because I have plenty of time to get util lower and to stay lower

Mortgage lenders can be very finicky! At one time, when I did an original application for a mortgage, I had several cards, some with zero balance, others with a balance. The mortgage lender required that all of my credit card balances be zero before they would approve my mortgage loan application.

However, in doing a refi, and in talking my CU financial advisor for a HELOC, there was not the same level of concern about carrying a balance on credit cards. That's also never been a concern for other types of loans such as a car loan or unsecured loan. In actuality, if you've got your util at the optimum for FICO scoring, pristine payment history, and decent scores to begin with, you should be fine.

Re: Is there a such thing as too many cards?

llecs — Tue, 04 Dec 2012 17:02:48 GMT

Ditto. It's a YMMV per lender. I had 22 or 23 open CCs IIRC at the time I applied for a mortgage w/ DW (she had at least a dozen). Our lender didn't care if balances were reporting provided DTI was in check and the score was high enough.

Re: Is there a such thing as too many cards?

EaglesFan2006 — Wed, 05 Dec 2012 15:27:20 GMT

llecs wrote:
Ditto. It's a YMMV per lender. I had 22 or 23 open CCs IIRC at the time I applied for a mortgage w/ DW (she had at least a dozen). Our lender didn't care if balances were reporting provided DTI was in check and the score was high enough.

Re: Is there a such thing as too many cards?

EaglesFan2006 — Wed, 05 Dec 2012 15:27:55 GMT

EaglesFan2006 wrote:
llecs wrote:
Ditto. It's a YMMV per lender. I had 22 or 23 open CCs IIRC at the time I applied for a mortgage w/ DW (she had at least a dozen). Our lender didn't care if balances were reporting provided DTI was in check and the score was high enough.

NM .. rememembered DTI as soon as I posted this... debt to income.