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Too many credit cards

New Visitor

Too many credit cards

Hi I was wondering will having too many credit cards affect my loans. I read somewhere saying too many open lines of credit can affect a person's ability to qualify for a mortgage or a car loan. Lenders view any open credit lines on all unused credit cards sitting in a consumer's wallet as potential outstanding debt. Is that true?
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4 REPLIES
Frequent Contributor

Re: Too many credit cards

lenders sometimes have a problem with you having too much available credit, not necessarily the number of open trade lines. Having too many accounts with a balance, however, could also be bad.

Starting Score: EQ 773, TU 766
Current Score (2/25/2017): EX 813, EQ 823, TU 818
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Message 2 of 5
New Visitor

Re: Too many credit cards

Anyone else know?
Message 3 of 5
New Member

Re: Too many credit cards

I am not sure if this is what you were looking for , but maybe some others will chime in. :
 
 
 
from what i have read it falls back on debt to income and utilization.
Message 4 of 5
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Moderator Emerita

Re: Too many credit cards

I wasn't turned down for a card, but I just got a Barnes and Noble MasterCard, and it only has a $500 CL. When I asked why, I was told that it was because I already had plenty of unused credit, and they felt that I didn't need a larger limit, which was fine.

Otherwise, as the others said, mortgage lenders might asked you to reduce your amount of available credit, as they are worried that you might go on a spree and not be able to pay your mortgage, and for scoring purposes, you can get a flag for "too many" accounts. You can also lose points for having too many accounts with balances.

As with everything else in jittery credit times, you just don't want to appear to creditors as if you have too many eggs in the air at once. Smiley Wink
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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