Does Too Much Credit Hurt Your Credit Score?

Does Too Much Credit Hurt Your Credit Score?

Does having too much credit hurt your credit score? Should you close credit cards to reduce your credit available? These are questions addressed by Barry Paperno a contributor to creditcards.com. Conventional wisdom 20 years ago was that if a borrower had access to too much credit, he or she would be tempted to use too much credit and get in trouble. But in the 1980s, FICO did a study and found that there was no evidence that having “too much” credit would change the consumer’s behavior. The same research confirmed that open long-held cards in good standing are associated with lower credit risk. However, some mortgage brokers still cling to the myth that a borrower may have too much credit.

The number of cards a person’s hold is a minor factor in credit scoring. Closing them won’t change the number. Positive payment histories remain on credit reports for up to 10 years. FICO publishes a profile of common attributes of persons with scores greater than 785 which is interesting.

REQUEST A FREE CONSULTATION


  • 1736 Stockton Street
    Ground Floor
    San Fransisco, CA 94133
  • (415) 651-1951