Comments on: Is it better for your credit to have several credit cards with moderate limit, or one card with a high limit? http://www.gettingbestcredit.com/credit/is-it-better-for-your-credit-to-have-several-credit-cards-with-moderate-limit-or-one-card-with-a-high-limit/ Call 888-653-9681 To Get Debt Help Now! Mon, 15 Aug 2011 03:14:41 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: talr http://www.gettingbestcredit.com/credit/is-it-better-for-your-credit-to-have-several-credit-cards-with-moderate-limit-or-one-card-with-a-high-limit/#comment-419 talr Mon, 01 Jun 2009 19:59:46 +0000 http://www.gettingbestcredit.com/credit/is-it-better-for-your-credit-to-have-several-credit-cards-with-moderate-limit-or-one-card-with-a-high-limit/#comment-419 It's better for your credit to have several cards with modern limit, as the FICO formula used by the credit bureaus consider the number of credit lines in good credit (by their type, e.g. revolving credit, installment loans etc). A lower number of credit lines will result in a lower score (since you'll have more limited history). Obviously that assume all of them are in good standing - if they're not, the picture changes dramatically. As to the total credit, what they look at is which percenage of your total credit are you using, and for that it's irrelevant how it's distributed between the credit lines. It’s better for your credit to have several cards with modern limit, as the FICO formula used by the credit bureaus consider the number of credit lines in good credit (by their type, e.g. revolving credit, installment loans etc). A lower number of credit lines will result in a lower score (since you’ll have more limited history).

Obviously that assume all of them are in good standing – if they’re not, the picture changes dramatically.

As to the total credit, what they look at is which percenage of your total credit are you using, and for that it’s irrelevant how it’s distributed between the credit lines.

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