|
Everyone knows that a bad credit history can disqualify you from getting a home loan, and maxed out credit cards can do the same. But most people don't know that having a large number of credit cards, even if they have low balances and a history of timely payments, can disqualify you for a home mortgage loan just as quickly.
Credit experts say having a number of credit cards can be just as bad for further credit as a history of late payments. The way the lenders look at it is, if you have five cards with a limit of $10,000 each. You have access to run up $50,000 in debt at any time. That makes you a higher risk, from their point of view.
If you are planning to apply for a home mortgage, cancel all the cards you do not need and only keep the ones you do need.
|
