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Axcess06

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Having too many credit cards penalizes your rating - and what to do about it.
The magic number (for optimal credit rating) for the average age of your credit cards is 4 years. Once you reach that average it will impact your Score positively. However, I have too many credit cards (9) and if I close the oldest (3) it will negatively impact my Rating as the 'average age' will decline. To persevere and accept that, in the long run its worth closing lower limit and most likely your oldest credit card. It will just take you longer to once again pass that 4 yr average. Still, you have to pass 6 years time before it really increases your rating. That can make the difference in lifting a 750 PICO to near 800. I should point out that my current PICO is 588 as I am nearly maxed out on all of my credit cards. I had no choice when I became ill, though I am starting to climb out of it once again. The ideal average credit card debt is below 30%. So try to watch your limit and don't be tempted to apply for more cards as the loan limit will not exceed $10,000 if that's the current high limit on just one of your credit cards.

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Total number of cards....

Helpful to 1 out of 1 people

I personally have 15 cards all but one have very low usage,  my score is in the high 760's  oldest account is 16 years newest is less than 6 months.

I know of one guy that has 86 credit cards,  Average age was less than 3 years and his score was over 800.

The biggest key is the Utilization rate, Age is secondary.

I suggest never closing a credit card account unless they are charging you an annual fee. If you no longer want to use a particular card, put it away and save if for emergencies.  Not using a card has no effect on your score,. Closing them does so why take the hit when you don't have to?

Good luck

Top Contributor
988 Contributions
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Incorrect.  AAoA is not reduced by closing an account.  AAoOA (which CK provides) is.  FICO uses AAoA, not AAoOA.

Number of cards in and of itself doesn't really mean anything.

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