How Many Credit Cards Are Too Many?

While there is no magic number that translates to the perfect number of credit cards, you can definitely stretch yourself - and your finances - too thin. When it comes to credit cards, the most important considerations are your income, your spending habits, and your ability to pay your bills on time. If you’ve gotten into trouble with credit cards, it’s important to know that you’re not alone in your predicament and that an experienced South Carolina debt relief attorney can help.

Key Points to Consider

The fact is that having a large number of credit cards won’t negatively affect your credit report – as long as you remain up-to-date on your payments and the cards aren’t perpetually maxed out – but having too few can. Most credit bureaus suggest carrying at least five accounts, which can be a mix of credit cards and loans, in order to avoid a thin file that makes it more difficult for scoring models to assign a credit score.

Consider the following:

• The thinner your file, the more difficult it is to raise your credit score, which can play an important role in your overall finances.
• Lenders often see thinner files as riskier files.
• The thinner your file, the more significant every credit action has on your credit score.

When you have fewer credit cards, it generally doesn’t take much to gobble up those credit limits, but the fuller your cards are, the lower your credit score is likely to be. Those who carry about 10 percent of their cards’ overall limits generally have the strongest credit scores.

Considering Your Personal Position

While carrying several cards may help you bolster your credit score in a perfect world, it’s not going to do you any good if you can’t keep up with your payments if you are tempted to spend until you run out of credit if you can’t keep your payments organized and timely, or if the number of cards you carry is simply too many for you.

Credit Card Debt and Bankruptcy

The truth is that credit card debt can become overwhelming, and if you’re facing more credit card debt than you can possibly pay off in a reasonable amount of time, Chapter 7 or Chapter 13 bankruptcy may be a decent option. Carrying too much debt on too many credit cards can have a serious snowball effect, and simply paying off the interest each month may be about as much as you can handle. If you’re feeling a serious financial pinch in relation to your credit card debt, consult with a debt relief attorney.

An Experienced South Carolina Debt Relief Attorney Is Standing By to Help

The savvy South Carolina debt relief attorneys at Reed Law Firm prioritize helping valued clients like you resolve their debt-related concerns favorably – whether through bankruptcy or another method. We’re committed to helping you explore your best options and find the right path forward for you. To learn more, please don’t hesitate to reach out and contact us online or call us at (803) 726-4888 in Columbia, South Carolina, and at (843) 679-0077 in Florence, South Carolina, today.