having multiple credit cards - good or bad?

[sysop3]

So my personal banker told me that I was able to get a credit card with a $7,000 limit with a lower interest rate than the one I currently have. I already had one with a $1,400 limit, but about $300 from it's limit. My banker told me that having multiple lines of credit looks bad and that I should close out the smaller one as soon as I pay it off. I was also told by my business instructor that have multiple lines of credit actually looks good. So who is right?

[GREENBACK]

I have multiple credit cards, 1 store card and a gas card and my CS is almost 800. I have a long history though and have always paid them off so I'm not sure if a lot of accounts really matters but it doesn't in my case.

[maat55]

I would not have cards for the sake of having cards, or have them just for the sake of raising a credit rating.

Typically, you do not want to close older lines. If your current card is less than a couple years old, I would likely pay it off and close it, any older, I would pay it off and store it. In any case, it should be payed in full each month or closed.

My personal philosophy is to use them to your capability and not to enhance scores. If you are savy at using them for rewards then PIF while not going over 50% utilization, fine.

Don't think score, think safety first. PIF or no.

[tmvijai]

Everybody has their own philsophy when it comes to CC and credit history. But the general rule, don't close your old accounts. Here is the link which talks about how FICO score is calculated, How Your FICO® Credit Score is Calculated - myFICO.com

I have around 5-6 CC's and use them for different purpose and pay them off full every month. I have score of 800'ish as of last month. If you read the above article, that will educate you how to improve your score especially paying full, not opening too many credit cards and not closing the old ones.

[boosami]

I have 25+ open credit card accounts. My credit score is ~800. It's 800 not because of the number of accounts, but because I carry no revolving balance and always pay in full on time. If I had one credit card instead of 25, my score would probably still be 800. The number of CC accounts you have does not significantly impact your credit score.

[wincrasher]

more credit is better. the more lines you have, the more lenders are encouraged to give you more. the trick is using your credit responsibly.

I have 5 cards with a total limit around $150k. The key is to have low utilization. mine fluctuates between 0 and 10%. Last I checked my FICO was 805.

If you have multiple lines, but you are maxed out, your score will plumment and will likely have your limits curtailed.

[maryannsms]

Your credit card is a powerful tool for the management of your financial life. It can help you to extend the value of the products and services you need by obtaining them before paying for them. It can reduce the need for cash or check in places far from home, and allow you to conduct personal and professional business by phone, mail or Internet over long distances.

Credit cards are not bad! In fact in can be beneficial, if and only if the person who's using it, is responsible enough in handling a credit card.

[wincrasher]

Your right Mary.

Good credit is a friend waiting patiently for your call.

Last time I tried to buy something with a check, they treated me almost like a criminal trying to pull a fast one.

Pull out the card, zip, $10,000 charge no problem, and thank you sir, what a great customer you are sir!

[FamilyPapi]

Agree with you guys - credit cards are not the bad guys...just like I tell my kids when they play any type of sport - YOU control the game, don't let the game control you.

How you handle credit cards and credit in general is really a game if you think about it. What's the first thing you do before you play? Learn the rules...and then the fun begins.

[nycguy567]

i have two of each of the major credit cards in case one gets scuffed up. i dont know what the rates are on any of them (although i know none of the are over 12%) and i pay them off each month. i usually use my cc for convenience and to track my spending (some of my cards have a budget tool to show u the breakdown of the expenses). all cc balances are AUTOMATICALLY paid off by my bank account as i've set it up that way. i boost my cc limits every 6 months. needless to say, i have excellent credit score and a long history. also i dont buy things i dont need.