Too Many Credit Cards?

How many credit cards is too many anyway?

After twenty years in the credit business having reviewed thousands of tri merged credit reports, my opinion is less than four is ideal and anything over six is too many.

Look and your grandparents’ credit report. Seniors typically have very high credit scores, guess why? They usually carry low or no balances on revolving credit card accounts. Their accounts can be 10 to 30 years old and they usually only have two or three revolving accounts.

Less than 2 accounts on your credit report is too few. Mortgage lenders want to see two open an active credit accounts in order to approve you for a mortgage.

If you do have too many don’t be so quick to payoff and close them. Go ahead and pay them off but keep the oldest 3 or 4 accounts open with zero or low balances.

In addition to the number of credit card accounts age of credit accounts is also a factor that many folks overlook in the credit scoring formula. Keep the old accounts active. Kill off the most recently opened ones.