Credit Cards and Loan Applications

Credit Card Debt Relief

More Consumer Loan Information

As you probably know, having a poor credit history or a bad credit score, can prevent you from getting a home loan. Or it may push you into a high interest loan. What you probably don't know is that having maxed-out credit cards can do the same thing!! In fact, simply having a large number of credit cards, even with low balances and a history of timely payments, can disqualify you from some of the best home loan programs.

Some experts believe that having a large number of credit cards can be just as damaging to your ability to obtain new credit as a history of late payments. Here is why lenders are reluctant to extend credit to excessive credit-card holders. If someone has twenty credit cards, each with a limit of $5,000, he has the plastic power to run up $100,000 in credit card debt!! And this debt can be accomplished at any time, even in just one day. That mere possibility makes the excessive credit-card owner a bogger risk to the lender. Thus this person may be charged a higher interest rate.

What can you do to protect yourself? Keep only a couple credit cards. Make sure you cancel the others. If they are not cancelled, they will show up as potential debt-extenders on your credit report. Don't forget to review your credit report for errors.

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