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Hey, with all the low intro offers on credit cards, it's very easy for people to bounce around credit cards.

I was just wondering, how do creditors who give big loans (ie mortgages) look at credit reports of people who have say 12 credit cards opened and say 9 closed in the last 3 years.

I know when I looked at my credit report, it showed how many cards I've had, how long I had them, and my credit standing with each of the creditors.

I appreciate any advice.

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<<I was just wondering, how do creditors who give big loans (ie mortgages) look at credit reports of people who have say 12 credit cards opened and say 9 closed in the last 3 years.>>

Hey, AbhayShah!

You really have to be careful with this. While always urging Fools to switch to a card with a better rate, I always point out that you don't want to be constantly changing, or collecting cards.

Having too many openings and closings on your report risks getting noted as having an unstable history, and could work against you.

Additionally, the worst thing you can do is to have too many cards, as it creates too much credit, and therefore is considered too much risk should you apply for a loan.

Credit is a balancing act, and one that's just not worth taking a fall for.

Tony
...but I still am...

Off2Aruba
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>>I was just wondering, how do creditors who give big loans (ie mortgages) look at credit reports of
people who have say 12 credit cards opened and say 9 closed in the last 3 years. <<

It should not matter at all for a home mortgage. I was wondering the same thing when I started looking for a home. I had multiple major CC's and a handful of minor ones plus a substantial line of credit. These were all open accounts ( I also had a bunch of accounts that I closed). The total credit available to me at the time was more than 2 1/2 times my income!
I was carrying no balances and my credit rating is top notch, but I was worried that having so much available credit would be a negative when trying to get a mortgage.

I checked with a VP in the mortgage dept. of a major bank and verified her answer with another source. The answer was, the lender does not care how much credit one has available or how many active cards. As long as you have a good credit rating and a downpayment, they will take the business. Remember, you are backing up the mortgage with your property.

Hope this helps. Oh ya, I closed 6/97. AJE
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<<I was just wondering, how do creditors who give big loans (ie mortgages) look at credit reports of people who have say 12 credit cards opened and say 9 closed in the last 3 years. >>

What can hurt is if you leave all those accounts you surfed open. I have a friend who is a loan officer, and he told me that is one thing he looks for. He has approved mortgages for people who had zero debt, and right afterwards they went on a credit card spree. Next thing he knows, they default. So, to protect his bank from that, if you have a lot of open credit accounts, he will make you close them, or disapprove your loan. I don't believe the actual credit card surfing bothers him (you can't do that too easy with mortgages anyway).
George
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I am a major fool ,I owe out appox 25000 in debt and have been playing the "LOW" intro credit card game for appox four years now and I can count the times on one hand I made a monthly payment that had an interest rate over 8%. I just re financed my home and had no problem,Yes even with that debt load.
I dont have the nerve to take money out of my 401k to pay off my debt. Good Luck Bye
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