Personal Finance

Is having a myriad of credit cards bad for your credit score

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  • Jan 10th, 2006 10:21 am
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Apr 15, 2002
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Is having a myriad of credit cards bad for your credit score

I only have 2 credit cards at the moment, but I am planning on using the cards for some creative financing for a business in the future (IE: shifting the cost to purchase inventory from a standard credit card to a zero interest introductory card.)

So does having 50 credit cards kill your credit score?
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Jan 26, 2003
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charger wrote:I only have 2 credit cards at the moment, but I am planning on using the cards for some creative financing for a business in the future (IE: shifting the cost to purchase inventory from a standard credit card to a zero interest introductory card.)

So does having 50 credit cards kill your credit score?
Having "50" will certainly impact your score.

Now, i'd seriously doubt that you could accrue "50" CC's but i'm sure that you could get quite a few.

What happens is that your credit score will reflect the unused CC room you have as being potentially problematic credit. If you have 5 credit cards with 10k each of credit then you could potentially be 50k in the hole without the ability to reduce that amount or even pay off the interest and not even the principle.

Eventually, your credit rating will reflect this uncertainty. That's why credit bureaus usually say something to the effect that if you don't need 5 credit cards then kill off the unused ones.
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charger wrote:I only have 2 credit cards at the moment, but I am planning on using the cards for some creative financing for a business in the future (IE: shifting the cost to purchase inventory from a standard credit card to a zero interest introductory card.)

So does having 50 credit cards kill your credit score?
lots of credit cards is only bad if a lot of them are finance company accounts. but ordinary visa and mastercards are fine.

what matters more is do you pay on time, and also, don't charge more than about 50% of the credit limit because that will reduce your score.
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Jun 14, 2003
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If you have 50 credit cards and even if it does not hurt your score (it is only a formula), the bank will feel uncomfortable and ask questions when they see 50 credit cards in your report. Hack, they probably will raise the flag when they see 10+.

Each bank has their way to score on top of whatever standard score is.
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Aug 28, 2002
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wow it'd take a LOT of effort to find 50 CCs from different sources or even same sources without fees.

Like if you get the RBC plat, gold, classic, classic II, dividend, mike tier, uofa, uoft, western, york, amex plat, amex gold, amex green, amex blue etc. then maybe you can get 50

with like a $500 limit on each :D
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Dec 31, 2005
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You might be surprised. A bank would probably look more favourably on someone with 200,000 room of revolving dredit, and 5,000 of charges, then someone with 4000 of charges on 6000 credit card. Stupid, but they go by percentages. Better to have more room, and using a small percent than having a little room and using it up.

Also, every time someone checks your credit, that can hurt your score, so 50 hits on the credit bureau might hurt.
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Aug 19, 2001
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sheesh this question gets asked so often.

Have more credit cards improves your credit score. The more the better.
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I think 50 inquires would get yuour score into the negatives
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stewpy wrote:You might be surprised. A bank would probably look more favourably on someone with 200,000 room of revolving dredit, and 5,000 of charges, then someone with 4000 of charges on 6000 credit card. Stupid, but they go by percentages. Better to have more room, and using a small percent than having a little room and using it up.

.
exactly. thats because someone with $4,000 of charges on only $6,000 of credit is probably overextending him/herself.

but someone with $5,000 of charges with $200,000 of credit is probably using it 'normally'.
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A fellow in Santa Clara, California has 1497 credit cards (Guiness record), amounting to $1.7M of available credit (see this news article). Apparently he has a very good credit score. As I understand it, there are three credit tracking/reporting agencies in the US: Equifax, TransUnion, and Experian. I would imagine Equifax and TransUnion in Canada operate similarly to their US counterparts (re: score rating criteria, etc.).

I also recall someone in Canada (Manitoba??) holding a few hundred valid CCs, but I can't find the news article right now...

Does anyone actually have evidence (verifiable references) that having numerous cards (10+) is bad, or is this really a myth?

I've had up to about 8-10 at a time, but I've reduced it down to 1 of each of the 3 majors: Visa, MC, and AmEx. My wallet and back pocket are much happier for it!
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CalgaryBen wrote:A fellow in Santa Clara, California has 1497 credit cards (Guiness record), amounting to $1.7M of available credit (see this news article). Apparently he has a very good credit score. As I understand it, there are three credit tracking/reporting agencies in the US: Equifax, TransUnion, and Experian. I would imagine Equifax and TransUnion in Canada operate similarly to their US counterparts (re: score rating criteria, etc.).

I also recall someone in Canada (Manitoba??) holding a few hundred valid CCs, but I can't find the news article right now...

Does anyone actually have evidence (verifiable references) that having numerous cards (10+) is bad, or is this really a myth?

I've had up to about 8-10 at a time, but I've reduced it down to 1 of each of the 3 majors: Visa, MC, and AmEx. My wallet and back pocket are much happier for it!
1. It is in US. That is nothing new. There are too many banks and they love to give you credit card.
2. It may have negative effect but not necessary to make you to all the way to bad credit score if you alreay have excellent credit score. e.g. if you are a billionare.
3. credit score is overrated in my opinion. Even if it has negative effect, big deal.

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