3 of 12

Write now Article Tools

Page 3 of 3

Many idiots will claim that having too many credit cards open is a problem. They are wrong. Keeping a large number of credit cards never hurt anyone, owing a ton of money to a large number of credit cards and paying late on them all is deadly. Owning a large number of credit cards increases your risks to being victimized by criminals and sneaky credit cards that jerk your interest rate around. No one gets turned down because they have too many credit cards...... have you? I doubt it. If a person has a good number of cards opened they either have extremely high credit or subterranean credit and won't have that problem much longer.

A person gets turned down from owing too much deadly credit debt. Because each credit card reports how good you pay them and they remain indefinitely open. They age like wine. That ten year old target card may be worthless and have a low limit, but it speaks volumes to lenders that you can maintain an enormous time of good payment history. Lenders don't care about the limit, they want to know how long you can reliably pay a debt. If you can pay a debt off for nearly forever, then you will be more than likely to handle a house or car.

When you close a card down, it starts the clock for it's removal from your credit. After ten years, it will fall off your credit. Go and reopen that same card, and then you'll have to do another ten years of good payments to get a card of equal value. Do not close cards down unless you cannot pay your current cards on time OR your credit card borrowing ability exceeds 30,000 dollars. I don't understand why anyone would borrow that much from credit and if you do, you are a fool. Even then, do not close the card, merely request the card to lower your borrowing limit. As a note, if you have to tell a credit card to lower your borrowing limit, you probably do not need to read this article.

"Well, Trey" you might say to me "I owe more than I can pay on credit cards and I'm late on them all the time. I'm screwed and there is no way out" The saying goes the same in Casinos as it does in credit. Better to cut your losses now than drag it out and lose more. Paying interest on cards you never pay on time is worthless and only gives satan's servants the 'legal' ability to claim you owe them more money. While you spiral into more debt, they destroy your credit more and more with each day going by.
Close that card, with the understanding you won't be getting any more credit for quite awhile and settle. Settle your debts for a fraction of what you owe with them. I mean seriously, the 1000 dollars you originally borrowed isn't anywhere close to the 5000 they laughably claim you owe. Close the card settle the debt and walk away. That will cut the bad pay history and start the long process of rebuilding your credit.

Building your credit is simple. Borrow little from credit cards and pay in full each month on time. Pay everything else on time each month and do not bite off more than you can chew.

Learn more about this author, Rodger Dodger.
Click here to send this author comments or questions.

• << previous page
• 1
• 2
• 3

Add your voice

Know something about How to improve your FICO credit score?
We want to hear your view. Write now!