Credit card bonus whoring

[JimmyG_415]

This is not true.

One of the biggest factors in your credit score is your debt to credit limit percentage. If you have 5 cards all run right up to the max, or lower existing lines that you are not using it will lower your score....sometimes by a lot. You always want to have credit lines that aren't being used if possible.

There is nothing better for the credit bureau's to see you have 100k in credit but are only using 10k of it. If you have 25k in lines and are using 24k of it, it is looked at as you being maxed out (which you are) and right on the edge of financial issues if anything ever goes wrong. That is a high risk person, while a person with say 5x debt credit available is looked at as in no real danger to default because they have so much access to other credit.

You never want to shut accounts down, or lower limits if you aren't forced to by the bank.

NBH is 100% correct.

Sorry B&P but your comments regarding credit usage and its impact on your credit rating are exactly wrong.

I agree w/these 2, and B+P, I read your reply below to Tony, but your net worth, (or your income), they don't show up on your credit report.

I'd imagine Druff has close to a 800 score, so I don't see this hurting his score enough to even notice, as 720 is pretty much as high as you need. (Some lenders give you small discount w/ a 740, but I've never seen one incentive for having a score over 741)

Now someone w/credit issues, a few lates, or ends up getting maxed out, that is when your score will get lower enough to hurt.
But if you have money management skills, I don't this being a "real" problem for anyone w/good credit.