Quote:
Originally Posted by quinda  My understanding of the way credit scoring works is that they consider how well the accounts are ran (so a couple of cards, all paid on time, is a good thing) but they also look at your total available balance versus your annual income - so if you have a ton of cards available to you, and the total debt you could run up was double your annual income, then that would go against you, even if you weren't using the cards at the moment. |
Yes, that is my understanding as well.
It is actually not advisable to have too many credit cards, as it would mean that your potential liability is greater than other people.
This results in greater default risks incurred by the credit card companies, and naturally, they would charge you higher interests.