Thread: Too many open accounts

How do lenders view you if you have too many open accounts. Is 6-7 accounts an acceptable amount of accounts to have open, or would it be better to have only 2-3?

They can deny you for any reason or no reason!!!

TOO MANY OPEN ACCOUNTS IS A "CATCH ALL PHRASE"...

What's your personal opinion on it though, would it be better to have just a couple cards, or would 6-7 be ok too as long as you use them responsibly?

Originally posted by matty61184
What's your personal opinion on it though, would it be better to have just a couple cards, or would 6-7 be ok too as long as you use them responsibly?

I use cards for SPECIFIC reasons...I have 1 card with 0.00% BT and PURCHASES...99.9% used...why not?

I used DISCOVERCARD and PAID IN FULL for CASH BACK...

I have other cards under 6% for BT'S...can't use them for purchases...

WHATEVER WORKS FOR YOU...I couldn't do it with only 2...

...MORE...some places DON'T take AMERICANEXPRESS or DISCOVERCARD, so you have to have a VISA/MC...

Hello.. I just pulled hubby's transunion report

2. TOO MANY ACCOUNTS WITH A BALANCE

Cap One $6
Lowes $80
Sears $0
BofA $26.00
MBNA 12,402
Juniper $0
Chase $5100

Citi Bank has not reported

I have 9 open credit card accounts. For what it's worth, creditexpert says this number of accounts is helping my score. I use some for balance transfers, two for rewards, one for cash if I need it for my business and the others are dormant most of the time.

Maybe I better RE-OPEN FIRST USA...it would be $15,500 UNUSED...

Originally posted by matty61184
How do lenders view you if you have too many open accounts. Is 6-7 accounts an acceptable amount of accounts to have open, or would it be better to have only 2-3?

matty61184,

Too many accounts with balances doesn't mean the person doesn't have money to pay his bills. It is a poor excuse to turn down people's credit application. I pay it in full monthly to all my credit card accounts.


Ron.

JUST F.Y.I.

since credit scores are based on statiscal models it sorta works like this:

If you have 17 open trade lines and 4 with balances
24% of your cards have balances. a major positive

if you have 5 open tradelines and 4 accounts with balances you are looking at 80% of your cards have balances. a major negative.

You cant have too many open accounts. just the percentage of accounts you have open with balances must be relative to the amount of accounts you have. also remember in the new generation FICO alot of accounts without balances may hurt you also.

another example is if you have 2 open accounts and one has late payments 50% of your accounts are negative.
a major negative.

if you 17 accounts and 1 has a late payment then only 5% of your accounts have negatives making the late payment not worth as much in your scoring.


another example is if you credit score is in the mid 600's and you 20000 in revolving debt that may be more than what other people owe in the mid 600's thus lowering your score more....

I hope that explains some things a bit.. though I am not the best at explaining..

Kevdog