Some Financial Advisors use The Old School rule of thumb and
tell you cut up every Credit Card that you aren’t using, others might tell you
to acquire as many Credit Cards possible within the guidelines of your credit
rating-that it makes you appear more credit-worthy to lenders. Truth is, it’s
more complicated than that. The number of credit cards you carry should be a
decision based on several factors including your FICO score, current credit card
debt ratios, other debt ratios, and your overall current financial standing. You
can review your FICO scores and get a Free Credit Report from the main 3 Credit
Bureaus here. Yes, A Free Credit Report. This is NOT a pop-up ad or a 3rd party
report that baits and switches with something to sell. This is the
do-it-yourself process for The Big 3: Equifax, Experian, and
TransUnion LLC.
And, why should you care about your credit report? It determines
the rate at which you can borrow money and how much money lenders will extend.
It’s also something that potential employers can review during the hiring
process. Many employers will equate a bad credit rating or a so-so credit rating
with your overall personal character. Scary, but true. Your credit rating may
not seem important today, but it can come back to bite you if you don’t stay on
top of it.