more cards=high risk user

[CardsLifeLine]

Hi all,

My parallel topics today on number of credit cards you have? Along the lines. . Having more credit cards is a sign to lenders to consider you as a high risk user.

For example take my case: my annual income is 86K and I have 26 credit cards and total credit limit of 160k odd. I have 2 INQ s in past 12 months.
Will I be considered as high risk user ?

I do not have plans to apply for new credit in near time, however have plans to buy a house. Will it matters really, please advice.

[longtimelurker]

Only an underwriter can give us real info (which may vary by institution or segment) but my guess would be that sheer number of cards doesn't indicate risk, more number of cards gained (or applied for) recently.  Too many, and it looks like someone is desperate for credit.

Some issuers are sensitive to total CL, but again that is different from number of cards.

Probably a large number of low limit cards, if they form a majority of the portfolio, doesn't make you look like a great prospect (in the sense you will be very profitable) but in the absence of the other factors, don't think you would  be considered high risk

[user5387]

Having more cards is not itself a negative factor for FICO scoring, but associated issues like lots of inquiries and new tradelines and reduced AAoA can certainly be negatives.

If your report is reviewed by an underwriter, some may not like what they see, and others may be impressed.

[Revelate]

If we're talking conventional mortgage, or FHA, will not matter in the slightest in my estimation.  The originating lender has zero reason for kicking you out over something the GSE's won't complain on, similar when we're talking FHA.

Jumbo lending space, YMMV.

I wouldn't realy worry about it, the math is pretty simple: at 80k income if push came to shove even 160k of debt could be paid off with a payment plan enforced by a judge.  Life would suck, but you wouldn't be on the street, and the banks wouldn't be out their money.  It's different when we're talking substantially different incomes and debts, but yours isn't likely to raise too many eyebrows: you'd still look better than me almost assuredly on my 32k limits on my prior low six figure income from an underwriting perspective, so it's all relative.

Course I may have <10k in income this year, suddenly that 32k in limits is quite a bit worse than your ratio .