Signing up for a credit card is so easy to do these days. Some people get carried away and get more than they need to. Is it good to have so many credit cards? How will it affect one’s credit score and what will happen when one goes about canceling a card?
Having credit and managing it responsibly is a good thing. As one demonstrates a ability to handle their own credit, it becomes easier to apply and get favorable credit terms.
Too much credit too fast is often viewed as an ominous sign. Lenders see the accumulation of lots of credit or credit cards as a potentially risky situation. Not only does each credit application pull and lower one’s credit score, it hints that the individual might be in a desperate financial situation.
Try to limit the number of credit cards you have and manage the credit that’s extended to you responsibly. Avoid hitting your credit limit and pay your bills in a timely manner. These simple practices over time will demonstrate to future creditors your creditworthiness.