Quote:
Originally posted by sexyavs
Actually more credit cards are good if you need to borrow a lot of money.
Banks rate your credit based on your available credit, so if you use 25% of any credit card limit, they take that as a negative.
So haveing a large amount of unused available credit is actually a plus.
Chris
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Wrong.
I work for Visa. I review/approve credit card applications and credit limit increase requests daily. And I can confirm to you that your total debt load is based on the total amount you have available to you.
Your monthly debt ratio is measured like this:
(rent/mortgage payments) + (car payments) + (min. monthly payment on any loans) + (min. monthly payment on all your credit cards if they were maxed) / monthly income
say your rent is $500/mth, your car is $500/mth, your loan payment is $100/mth and you have $100k of available credit at 3% min monthly payment ($3k) and you make $3500 a month. your debt ratio is $4100/$3500 and you're $600 in debt monthly.
Any creditors look at it like that, even if you have a zero balance on all your credit cards.