3. You Have Too Many Credit Cards
Keeping too many credit cards open at one time can be problematic, even if you pay each of them off monthly. “Having too many cards can negatively impact both your credit score and your ability to borrow money,” said Julie Pukas, head of commercial product integration at TD Bank.
Even if you don’t use all your available credit, lenders might wonder what would happen if you did max out your cards.
How to avoid it: “Having three to five credit cards is usually not a problem,” Pukas said. “But if you find your credit card balances are increasing, that’s a danger signal.” She advised limiting the amount of available credit you have at any one time.
How to fix it: If your ratio gets too high, consider closing one of your newer credit accounts to keep your utilization ratio low and your credit history long.
