Credit cards: Is the more is good theory true?
There are quite a few things about credit ratings that can confuse a person. For example, you have a high FICO score and you open a new credit card account with a bank, should you close any older account that you already have with the same bank if you want to maintain your high credit scores? Some people believe that there is no need to close old accounts since credit bureaus would give a person a higher score if he has had many credit card accounts in his credit history. This, even if he uses only two credit cards.
Reality is however, not that simple. Potential ‘open’ credit could affect your credit negatively. This is especially true if you plan to buy a house. Your lender may see so many ‘open’ credit lines and may not be too comfortable with that. Suntimes.com reports:
But as a matter of course, an individual probably doesn’t need more than three cards — and at some point, even if you don’t use the card for a while, it’s a mistake to leave it hanging around!
Read more: Credit history doesn’t end with bankruptcy
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