Do I Have Too Many Credit Cards?

By: Mary Smith
Published: Aug 8, 2021

Do I have too many credit cards? Most people carry around credit cards because it’s more easier than cash. However, having too many of them can cause serious problems, and for your credit.

If you get a lot of solicitations in the mail or by telephone, it does not necessarily mean that you are a good risk for lenders. Financial companies want people who will run up big balances. Having multiple credit cards can impact your FICO score more ways than one.

For example, if you sign up for these cards but get turned down, that’s another hit on your credit report. It will show on your report for two years. So before you think about answering to these solicitations, ask yourself if it’s worth impacting your FICO score.

Having more than a three credit cards signals lenders that you have the potential to get into too much debt too fast. It may also cause banks to decline your applications for other types of loans, knowing that you already have a sizable chunk of cash available on your credit cards. Even if you don’t have a balance on the cards you own, your bank knows you could run up charges quickly on any open card.

It’s difficult to keep track of more than three credit cards. Because terms, grace periods, and interest rates vary, you may find yourself paying unexpected fees and penalties. Fewer cards are easier to keep track of, and mean less interest. If you cannot pay off your combined debt in one year, you are heading for credit card trouble.

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