too many cards
Question: even if the balance is paid in full every month, how many cards are too many? also why do some “banks” issue both gold and platinum while others replace one with the other?
Answer: Someone correct me if I’m wrong, but we were told that it is a bad idea to have a lot of credit cards when we applied for a home equity loan. The lender told us that the problem with having too many credit cards is that the limit amount is considered a liability when you apply for a loan. For example, if you have 8 credit cards and they each have a limit of $8,000, a lender would view that as a potential debt of $64,000, even if you pay off all eight cards each month. We had four cards at the time and have cut back to two – one for routine expenses, and one for non-routine, big-ticket expenses such as airline tickets, Christmas gifts, car repairs, etc.
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Filed under: Home Equity Loan
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