http://www.paulferraresi.com/2009/10/27/living-with-less-credit/ Paul Ferraresi Blog is a compilation of topics including, but not limited to, finance, personal wealth building, motivation, political education, business tips, and, most importantly, personal growth and development. Wed, 14 Sep 2011 15:53:25 -0700 http://wordpress.org/?v=2.8.4 hourly 1 http://www.paulferraresi.com/2009/10/27/living-with-less-credit/comment-page-1/#comment-22571 Paul Wed, 28 Oct 2009 14:44:46 +0000 http://www.paulferraresi.com/?p=348#comment-22571 Rick, that is the problem with the FICO score system. Too many cards puts a ding against your score. On the other hand too high a balance causes more of a ding. The old rule is that the max on any card should not be more than 40% of the crdit limit. So, with a $10000 limit...never let the balance go above $4000. Funny...it is better to have 10 cards with a $1000 balance each than one card with a $10000 balance. There is no formula for number of cards to income. In general ...5 cards should be a maximum. This does not include gas or store cards.:) Paul Rick, that is the problem with the FICO score system. Too many cards puts a ding against your score. On the other hand too high a balance causes more of a ding. The old rule is that the max on any card should not be more than 40% of the crdit limit. So, with a $10000 limit…never let the balance go above $4000.
Funny…it is better to have 10 cards with a $1000 balance each than one card with a $10000 balance.
There is no formula for number of cards to income. In general …5 cards should be a maximum. This does not include gas or store cards.:)
Paul

]]> http://www.paulferraresi.com/2009/10/27/living-with-less-credit/comment-page-1/#comment-22570 Rick Wed, 28 Oct 2009 14:25:47 +0000 http://www.paulferraresi.com/?p=348#comment-22570 I've also read that having too many credit cards (i.e. multiple mastercards, visas, amex, etc) can negatively affect your credit score, even if no balances charged against them. Just having the availability is considered negative. If that's correct, what's the proper balance of credit cards/credit? I’ve also read that having too many credit cards (i.e. multiple mastercards, visas, amex, etc) can negatively affect your credit score, even if no balances charged against them. Just having the availability is considered negative. If that’s correct, what’s the proper balance of credit cards/credit?

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