More the better? - Page 2

VanBasten · 03-23-2007

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.

dasha101 · 03-25-2007

The more the credit card you have, the more you'll be tempted to keep on spending. There is nothing wrong in having 2 or more credit cards as long as you have the money and the resources to pay for it. Credit score depends on your paying habit not on the number of credit cards.

**onlineexperts** · 03-29-2007

It doesn't matter whether you have a lot of credit cards or not. The main point is that you pay off whatever amount that you use them for. If you only have one card, you won't get in too much debt just as long as you pay your balances on time.

joecool6101 · 03-30-2007

I was asking banker last month how the whole credit thing works and she tells me that basically if you pay 50% of your balance each month if you cant pay it all then it will still be the same as you paying your complete balance and your credit score would be great. Also if you go over the limit and they have to raise it and you dont pay it off the next month that KILLS your credit score. But like others have said just use it every so often on like gas or milk just so it is active and pay it off and you should be fine. Doesn't matter the total amount it is used.

mentaliser · 03-31-2007

I think people should operae with limited no. of credit cards. they tempt us to spend more and eventually we lend up in trouble not being able to repay our debts.

sood123 · 04-25-2007

Please tell me what is the advantage of having good credit score?

laker110 · 05-26-2007

The think the best credit card is that which suits the indiviual's pocket. the card which makes its holder comfortable. I think that's the right choice for him.

**peyton999** · 06-05-2007

I agree but what really matters is are you paying on time,this factor really matters a lot.

creativity · 06-23-2007

Yes, i agree ,that if you have more number of credit cards , your score would be exceptionally good, provided you pay all your bills on time... I think it is not a cup of tea, so i advice you to opt for lesser number of cards and use it wisely and then also you will be able to maintain a good score.