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Right now I have 10 Credit accounts open. Ranges from $ 424.00 to $ 5200.00 with a credit score of 728.

I have $ 0 balance all of my cards at this time.

I just applied to get a motorcycle and they denied me saying that I have too much revolved credit open.

I rent a apt due to the high housing prices. I have yet been able to afford a house due to those circumstances.

I have a couple questions that I hope can be answered.

1. How many Cards should I have open at one time?

2. I have heard having allot of closed accounts on your credit report looks bad. T or F (Explanation Please)

3. I have heard that you should always keep a small balance on all your cards. T or F (Explanation Please)

4. Should I try and get an outside loan from a banker or lender to get a lower APR than what they are offering at the dealership?

5. Any other useful tips to help keep my credit score on the rise without accruing allot of debt?

Thanks Allot.

8 Thoughts on How many Credit Cards should I have open at one time?
  1. Reply
    August 30, 2011 at 7:06 am

    you have excellent credit score .
    few warning’s.every time you apply for another credit card ,they check your credit ,and many place’s turn you down for that reason .
    also you have zero balance ,you need to start ,using the revolving door ,use one ,and pay ,use another one and pay ,they don’t care about how much money,or credit you have ,they just care if you pay your bill’s on time .
    the amount of credit card’s ,should not matter ,i have about 10 but i wait for time to lapse before i apply for a new one .

  2. Reply
    August 30, 2011 at 7:28 am

    The number of cards you have should not matter as much as the balance on them.
    Don’t close the credit cards just let them go dorm-it. Don’t use them. Just use one or two.
    Pay off your cards in full each month. That is a good thing.
    Never get credit from the dealer. They will get you credit from a bank and then add a % to the loan above what the bank would charge you and keepit as profit.
    Go to a credit union or bank and get your own loan. Not only will you get a better rate, cutting out the middle man (the dealer) you will also find out what the car or bike you are buying is really worth.

  3. Reply
    August 30, 2011 at 7:39 am

    I think you should have only one card, with the lowest interest rate you can find. Good for you for having a zero balance on that many cards, but if you can do that, why not just pay for purchases outright instead of charging? I’d close all the accounts except maybe one, especially with identity theft on the rise. That may be all you have to do to get your motorcycle loan, and most credit cards can be closed by phone.

  4. Reply
    Julie J
    August 30, 2011 at 7:58 am

    1. How many Cards should I have open at one time?
    I recommended that you have at most 2-3 major credit cards. They should be ones that you have had established credit with for the most years. It would also be a bonus if they accrue miles like amex or if they give you low percentages.

    2. I have heard having allot of closed accounts on your credit report looks bad. T or F (Explanation Please)
    True. It looks like you have problems with keeping your accounts straight. However, in order for you to take care of your 10 account issues, you will need to cancel 7 of them. This will reflect on your credit for a while, but oh well. 4 Years will pass and this will not show eventually.

    3. I have heard that you should always keep a small balance on all your cards. T or F (Explanation Please)
    False. You do not need to keep a balance. What is important is the “highest” balance you’ve had. This establishes the maximum that you’ve been able to charge and pay without any trouble.

    4. Should I try and get an outside loan from a banker or lender to get a lower APR than what they are offering at the dealership?
    Of course. If you walk in to a dealer with preapproved credit you have some control over the transaction with the dealer. The dealer may actually try to give you a better rate after that. Also, if you are a first time buyer, you will get the best deals on cars and bikes. Much lower percentage. I suggest you go to a credit union for the best percentages.

    5. Any other useful tips to help keep my credit score on the rise without accruing allot of debt? Do not apply for too many cards. It could look like you want to go crazy with your finances. Also, if you do have balances, it would be smart to call the credit card companies and ask for a lower percentage. They can always say no and you can always move your balance to one of your other credit cards that has lower percentage. But most importantly, pay on time! Good credit does not happen overnight. It takes time to build up good credit so make sure you do the right steps. This will effect you when you are ready to buy a house or other investment such as a car or rent an apartment. I would also suggest that you get a credit report once a year to double check your information is correct. That way if there are any discrepancies, you can contest them with the credit company.

  5. Reply
    August 30, 2011 at 8:28 am

    Credit cards offer conveniences that are hard to pass up — extra security, quick identification or simply lack of cash. So you have to ask yourself, “Do I really need a credit card?”. The answer is a personal decision. One that depends on how you plan to use the card and whether you will use it wisely or not. Let’s take a look at the good and bad of owning a credit card.

    The Good

    Credit cards are an universally accepted form of payment, especially when compared to writing checks. There are an increasing number of places where you card is welcome: movie theaters, grocery stores, internet purchases, even the IRS accepts payments via your credit card — imagine that! And credit cards are usually safer than carrying cash.

    If you have a dispute with a merchant over an item purchased with your card, you may have the right to withhold payment depending on the circumstances. Buying large ticket items with a credit card may afford you more protection if the item should break, not work as advertised, or fail to meet your expectations.

    Many cards have grace periods that last as long as 25 days. Essentially, you’re given an interest-free loan for a month before you have to pay off your charges. Money in your savings or checking account will be allowed additional days to earn interest until it is used to pay off the credit card bill. This strategy is only successful if you pay your balance in full each month.

    Credit cards are an invaluable source during emergencies: car repairs, medical emergencies (if you don’t have health insurance), or other jams in life that require significant cash quickly.

    You’re able to track your personal expenses for a budgeting program by using a credit card statement. Purchases can be identified by category so you’ll know where your money is going. Record-keeping will be easier than if you used cash.
    The Bad

    The convenience and buying power credit cards offer may drive you deeply into debt if you’re not careful. High credit limits may lead to impulse buying and overspending could become a reality.

    Having a large number credit cards in your name might hurt you when you apply for additional credit — for a bigger purchase, such as a car or home. If creditors see too many lines of credit, they may deny your application because they think you’re overextended. Keeping track of that many cards may also become a financial nightmare if they’re lost or stolen.

    Many credit cards have high interest rates and annual fees. Not paying off the balance in full each month will result in added debt. Continuing this cycle for a long period of time will do considerable damage to your financial well-being.
    Making Choices

    Consider the pros and cons of making credit cards a part of your financial strategy. Your decision is a very personal one. You should look at the positive aspects of owning a card versus the possibility of overextending yourself and going into debt. Whatever decision you make, ensure that good money management and common sense prevail

  6. Reply
    August 30, 2011 at 8:51 am

    how many?
    I say 1 that’s all that you need…A VISA and you will be OK anyway keep a good payments so you won’t have to pay too much on interest.
    A VISA and 1 American Express work just fine.

  7. Reply
    August 30, 2011 at 9:43 am

    1. I have 5 or 6 credit cards, each has at least 5,000 limit. I use 3 of them regularly and pay the entire balance each month. The others I use very rarely. My credit score is around 810 and I have never been questioned about my revolved credit (I do own a home, I don’t know if that makes a difference).

    2. Close some of the accounts if you want, they’ll eventually roll off. Just don’t keep opening new ones and closing old ones (that gets harder these days with ID theft and all).

    3. I personally use several of my cards regularly and others I have not used in months (maybe years). I do know that a low balance-to-limit ratio is good and if you close accounts that, in affect, raises your ratio since your limit went down even though your balance did not go up. Run your balance-to-limit ratio here…

    4. It’s always a good idea to check around for the lowest APR you can get.

    5. 35% of your FICO score is based on paying all your bills on time. 30% is from Balance-to-Limit ratio. 15% is from the length of your credit history. 10% is from new accounts and recent “new” credit applications. And 10% is based on the mix of credit card and other loans.

    Sounds you best chances for a higher FICO are improving the mix of credit card, retail cards and other loans plus getting some “new” credit like a retail card, but don’t get too much new credit all at once. Maybe you could request higher limits on some of your cards and get rid of some of the lower limit ones. That would keep your balance-to-limit ratio low while reducing the number of open accounts.

    It’s all just a bit confusing. Good luck to you.

  8. Reply
    Joseph Sangl
    August 30, 2011 at 9:45 am

    If you would pay CASH for a motorcycle, you would not need a credit rating!

    I decided long ago that paying interest on loans is how the banks stay RICH and I stay POOR.

    I have been debt-free for years, and I am LOVING it! Yes, it means that we have had to wait (sometimes for years) to purchase something, but it is WAY BETTER than paying payments on something dropping in value like a motorcycle!

    I am on a crusade to help others with their personal finances and have tons of FREE tools – budgets, debt freedom date calculators, investment calculators, etc. at my web page

    Good Luck!

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