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Valued Contributor
mjbfan79
Posts: 1,998
Registered: ‎03-31-2008
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Can To Many Cards Be A Bad Thing

[ Edited ]

Can having to many credit cards look bad when your applying for new credit even if the balances is low or 0?


Starting Score 3-31-08: EQ 582 TU 577 EX 625
Current Score 3-19-10: EQ 703 TU 712 EX No Clue
Goal Score: 800 By January Of 2012


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Senior Contributor
Wolf3
Posts: 3,197
Registered: ‎01-24-2010
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Re: Can To Many Card Be A Bad Thing

[ Edited ]

I doubt it.

 

However, if your total credit limit is too high with respect to income, some will deny.    

 

 

Valued Contributor
Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
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Re: Can To Many Card Be A Bad Thing

I have a red flag on my EQ report for "too many accounts."

 

I have 7 cc accounts, but when you add them to everything else (like my school loans), it really adds up. I'd be careful about having too many accounts total if you can help it.

 

Also, I think there is value in waiting and applying strategically for those cards you really want. It would be frustrating to be turned down for a card you really want because you already have too many other cards (like store cards you never use).

Moderator Emeritus
beamMEup
Posts: 4,470
Registered: ‎12-31-2008
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Re: Can To Many Card Be A Bad Thing

FICO seems to care about how many accounts you have open.

 

FICO reason code #4 “Too many bank or national revolving accounts” includes revolving accounts like HELOC’s, personal LOC’s and CC’s.  They do not need to have balances to impact your FICO score – they have an impact just because they’re open. 

 

A few months ago, one of our posters had his cc closed, and his creditor cited this FICO code as the reason.  In his case, he had 6 cc’s, but didn’t report how many other revolving accounts he may have had open.

 

Also FICO reason code #28 “Number of established accounts” or “Too many accounts” is another factor.   Again, these accounts do not need to carry a balance to impact your FICO score.  If we have too many accounts, we can raise our level of risk and drop our scores.

 

Available credit to income is not a FICO score issue because FICO doesn’t score on income based information.

 

This is one time when I’m a big fan of pulling reports and scores from myfico.com/12.  You’ll see all four reason codes for both Equifax and TU.  Is FICO hitting you for this?

 

 

Just puttin' syrup on something, don't make it pancakes.
Valued Contributor
mjbfan79
Posts: 1,998
Registered: ‎03-31-2008
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Re: Can To Many Card Be A Bad Thing

Im thinking about closing 2 store cards. I don't shop at the stores so why do I need the cards. In the past like many others here have applied for credit you don't evan need. An now I see it's time to chop some down. When I got my credit in order it's like I got a rush from getting approved cause I had gone so many years without any credit cards. But im finding out only apply for what you need.


Starting Score 3-31-08: EQ 582 TU 577 EX 625
Current Score 3-19-10: EQ 703 TU 712 EX No Clue
Goal Score: 800 By January Of 2012


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Valued Contributor
Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
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Re: Can To Many Card Be A Bad Thing

If you don't want to close any of your store cards, they will die from nonuse before too much time passes. On the other hand, if you close them, they will say that they were closed by you and not closed by the credit grantor.

 

I understand what you mean by getting caught up in the rush of finally having good credit. I think when you look at those in the 800s, however, you will see a lot fewer credit cards. We are up to seven, and I think if we decide to get any new ones, we will close out one that we already have. I'd like to try to grow the limits on those we have rather than try for new ones.

Frequent Contributor
DickC
Posts: 260
Registered: ‎05-21-2009
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Re: Can To Many Card Be A Bad Thing

[ Edited ]

OK, first, I cannot comment on "scores" because as I have mentioned many times before I have never seen mine. That being said, I have a dear friend in the banking business and we often speak of Credit issues (due to my pervious work) and he tells me, ESPECIALLY NOW they are looking at a persons "TAC" (Total Available credit)  in regards to credit approvals, CLI's, etc, which would be tied to the cards a person has.

 

We have 4 Credit cards. I haven't applied for credit since Feb of 2001. I don't ask for CLi's (although BOA did double my CL when they renewed my card and put me back  into a BANKAMERICARD. This is an account I have had since 1974.

 

Our other 3 cards are all 20 years plus in age. We have 3 "joint" cards and we also each have 1 individual card, in our name only. We did this in case we were ever out and I lost my wallet or my wife her purse and we had to cancel our cards. If that happened one of us would always have the Individual card to sustain us until we could get replacements.

 

The credit landscape has changed dramatically so I think it will be a while until we really see where Banks come down on what criteria they are now using in the credit granting/credit extension process.

 

Best of luck to you in all your credit endeavors.

Regular Contributor
Nonaii
Posts: 246
Registered: ‎06-02-2008
0

Re: Can To Many Card Be A Bad Thing

 


Wolf3 wrote:

I doubt it.

 

However, if your total credit limit is too high with respect to income, some will deny.    

 

 


+1

 

Regular Contributor
Nonaii
Posts: 246
Registered: ‎06-02-2008
0

Re: Can To Many Card Be A Bad Thing

 


beamMEup wrote:

FICO seems to care about how many accounts you have open.

 

FICO reason code #4 “Too many bank or national revolving accounts” includes revolving accounts like HELOC’s, personal LOC’s and CC’s.  They do not need to have balances to impact your FICO score – they have an impact just because they’re open. 

 

A few months ago, one of our posters had his cc closed, and his creditor cited this FICO code as the reason.  In his case, he had 6 cc’s, but didn’t report how many other revolving accounts he may have had open.

 

Also FICO reason code #28 “Number of established accounts” or “Too many accounts” is another factor.   Again, these accounts do not need to carry a balance to impact your FICO score.  If we have too many accounts, we can raise our level of risk and drop our scores.

 

Available credit to income is not a FICO score issue because FICO doesn’t score on income based information.

 

This is one time when I’m a big fan of pulling reports and scores from myfico.com/12.  You’ll see all four reason codes for both Equifax and TU.  Is FICO hitting you for this?

 

 


The one time I got my scores using the /12 url, I didn't see any numbered reason codes.  At least not like 'reason code 4'  reason code 28 'reason code 12'.  Do you have an example to put up to show what it should look like, and how it's supposed to be different from the regular site?

 

Moderator Emeritus
beamMEup
Posts: 4,470
Registered: ‎12-31-2008
0

Re: Can To Many Card Be A Bad Thing

Okay, nonaii, I will give it a try.  I haven't done so much pasting here - give me a few minutes/hours and we'll see how I do.  (Plus I'm multi-tasking - Friday night TV PLUS posting/pasting!!!!) 

Just puttin' syrup on something, don't make it pancakes.

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