How Much Credit is Enough

Having too many credit cards may also harm your finances in a number of ways including:

• Tempting you to use all of your credit cards and, as a result, take on more debt than you can afford to repay.
• Keeping cards open with a zero balance is not beneficial to your credit score. If you are closing accounts due to inactivity, find ways to make small charges and repay your balances in full each month instead. Avoiding unmanageable credit card debt is a good thing, but using your card helps to ensure a positive credit rating over time.
• Every time you apply for a new credit card it will appear in your credit history as an inquiry. The more credit-related inquires you have, the more likely you will damage your credit history and lower your credit score.

Warning: Just a handful of inquiries may mean the difference between acquiring the credit you need and being denied credit.