How Much Credit Is Enough Credit?
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Having too many credit cards can also harm your finances in a number of ways, including:
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- You may be tempted to use all of your cards and, as a result, you may take on more debt than you can afford to repay.
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- A lot of open accounts, even if you owe little or nothing on them and have managed them well, will damage your credit record and lower your credit score since as long as they are open you could run up the balances on the accounts.
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Every time you apply for a new credit card, it will show up in your credit history as an inquiry. The more credit-related inquires you have, the more you will damage your credit history and the lower your credit score will go. In fact, currently each inquiry reduces your credit score by four points.
Warning: Just a handful of inquiries can mean the difference between getting the credit you need and being denied credit.
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