Question by AC: How many credit lines should I have?
Right now I have two credit cards. An american express with $ 2600 limit and a Capital One with a $ 1000 limit. I recently went to apply for a personal loan in the amount of $ 5000 but got denied everywhere. My credit score is 668 and im told that is ok. They say my lack of credit lines is the main reason I got turned down. Any Advice?
Answer by msanch_98
There is no specific answer. It is a function of how much you make and how much you owe.
Creditors look at Income to debt (Salary/what you owe)
They also look at Income to credit limit (Salary/ what you could owe if you maxed out all your cards)
Keep in mind credit history is also important, so don’t go canceling cards that you have had for years.
Bottom line is don’t get more credit than you need. If credit cards keep increasing your credit limit, decline it. For example your on your American Express card you might be better off with a $ 1500 limit than the $ 2600 you have.
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