Document text
http://www.omniture.com --> Sections Home Page Local News AP News Blogs Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Multimedia Photo Gallery Readers Photo Gallery Sports Tempo Weather Road Cams Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Distinctly Northwest Women in Business Homelife Magazine Joy Magazine Oregon Golf Info Oregon Wine Info Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend January 28, 2007 Smart Money: Beware of having too many credit cards By Bruce Williams DEAR BRUCE: Like a growing number of Americans, I have been taking advantage of the various "reward" credit cards. I charge almost everything to a card, and I always pay the balance in full before it's due. With the perks available, from cash-back to airline miles, gift items to the convenience of having only one bill to pay at the end of the month, I find this an attractive "gift horse" for the disciplined consumer. Recently, my brother-in-law told me that applying for too many cards could ruin my credit, even though there is no balance on them. I currently have four of these cards, which I alternate as their yearly quota is maximized. Is there any truth to what he said? — D.D., Mattawan, Mich. DEAR D.D.: There is some truth to your brother-in-law's statement: Too much outstanding available credit can work against you. In other words, if you have five credit cards each with a $10,000 line, that means, even though you owe nothing, you have the ability to quickly grab $50,000, which might be beyond your ability to repay. The idea of charging things because you get air mileage or whatever at no additional cost makes sense. I have suggested to retailers they give me a discount and I won't take the miles — I'll pay cash — but they generally only smile. I would not urge you to apply for a great many cards. However, as long as the other cards are paid in a timely fashion, one periodically is not going to do any damage. But too much outstanding available credit can be hurtful when applying for yet another loan. Send questions to: Smart Money, P.O. Box 2095, Elfers, FL, 34680.E-mail to: [email protected]. Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2007 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems Online Casino Reviews Trunks, Footlocker Fundraisers UK Homeowner Loans Casinos Canada Cord Blood Banking Discount Hotel Reservations Texas Electric Choice Compare Electric rates in Texas Windermere Van Vleet Men's Clothing Debt Help New Hampshire Primary