Credit counseling

How Many Credit Cards Is Too Many?


You are at the register paying for a pair of new shoes at your favorite department store. The cashier asks if you would like to sign up their rewards program to save 10%. You are thinking who wouldn’t want to save 10%, of course you want to sign up. So you sign up for the stores credit card to get a discount on your purchase. Is that 10% off and a new credit card really benefiting you?

Stop and ask yourself if you really need another credit card. The more credit cards you have the greater chance you have of getting deeper into debt. It is important to remember that credit cards are not a form of supplemental income. The annual fees of the credit cards can also add up, so that 10% you saved will eventually cancel out.

Your credit score can also be negatively impacted by having too many credit cards. Which will in turn impact your ability to borrow money. Learn more about how a bad credit score can affect your life in our recent blog post (Little Known Causes for Bad Credit

In contrast, adding more cards can help your score by decreasing your credit utilization ratio (the amount of debt you carry compared to your available lines of credit). However, if you have a lot of credit cards with high limits and you go to a lender to take out a loan, the lender will take into consideration a situation where you ran those credit cards up and what your debt-to-income ratio would look like then.

So, how many credit cards is too many? There are people who are very successful using a single credit because it is easiest to manage one card. Having 3-5 cards is typically not a problem. But if you find all your credit card balances are increasing, that is a danger signal.


If it’s been a long time since you have checked your credit report, give us a shout here at Nationwide Credit Clearing.  Our Initial Credit Report and Consultation is Free of Charge!  Call Today!

Nationwide Credit Clearing

“Home of the Free Credit Report & Consultation”
2336 N. Damen
First Floor
Chicago, IL 60647

Phone: 773-862-7700
Toll Free: 877-334-3296
Fax: 773-862-7703

Credit Repair Illinois

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6 Financial Mistakes Young People Make

Whether you just graduated from college or are moving out on your own, it can be hard to keep track of your personal finances as a young adult. Read through these 6 common financial mistakes and learn how you can avoid them.


credit-card-1080074_960_7201. Not Taking Advantage of Discounts: There is a world of special prices for students and young people out there, from banks to movie theatres – take advantage of them! Do your research beforehand, find out what discounts are available to you. Check out Groupon or Retail Me Not.

2. Misunderstanding Credit Cards: Whether it be cash advances, large balances, late fees, or only playing the minimum balance, credit cards can lead to much more trouble than realized. The fine print and details of credit cards are often times misunderstood by young people. Read into what you are signing up for and ask plenty for questions when you do not understand something.

3. Signing Up For A Rental Or Mortgage That Is Too Expensive: Signing a lease for rent or applying for a mortgage that leaves you with little money to do anything else, will not only leave you at home but put you at risk for debt. You have no cash at hand, so what do you do? Sign up for credit cards to make up the difference in order to enjoy your lifestyle and pay for unexpected costs. Avoid making this mistake, sign up for a lease or mortgage that is within your budget in order to avoid creating debt for yourself.

4. No Rainy Day Fund: Setting aside money for emergencies gives you cushion for unexpected events and helps you avoid adding to your credit card balance. Maybe your car got towed, or you get injured, having a “rainy day” fund keeps you prepared for the most unexpected events. Including a “rainy day” fund as a part of your budget, will eventually help the money add up.   

5. Failure To Realize How “Little Things” Add Up: Your daily coffee stops, eating lunch out, or weekly shopping trip of $100, can all add up to thousands of dollars a year. Cutting back can help you save a lot of money for savings, retirement or paying down your debt.

6. No Financial Planning Or Budget: Some young people are tainted by the idea that saving for the future is only for people thinking about retirement. Everyone can benefit from financial saving whether you are planning for retirement, purchasing a home, or traveling around the world. It is also important to budget your daily expenses. Sit down and look at what is left after your wages and fixed expenses. Not knowing how much you have can easily lead to spending more than you can afford. A budget will help you determine what you need to do to pay for your next vacation.

Nationwide Credit Clearing
2336 N. Damen
First Floor
Chicago, IL 60647

Phone: 773-862-7700
Toll Free: 877-334-3296
Fax: 773-862-7703

Your Credit Score

How long does information stay on my Credit Report and how can Credit Repair help me?

credit report credit score nationwide credit clearingThis is a great topic because it is one of  Most Frequently Asked Questions to credit repair companies by those who are trying to improve their overall credit score.   The answer is probably not what you are looking for if you are someone who has had significant late payments, judgements, bankruptcy or other

Here’s the Breakdown:

and Although It depends on the type of negative information, here’s the average idea of how long different types of negative information will stay on your credit report:

  • Late payments: 7 years
  • Bankruptcies: 7 years for completed Chapter 13 bankruptcies and 10 years for Chapter 7 bankruptcies.
  • Foreclosures: 7 years
  • Collections: Generally, about 7 years, depending on the age of the debt being collected.
  • Public Record: Generally 7 years, although unpaid tax liens can remain indefinitely.

Length of Time Matters:

For all of these negative items, the older they are the less impact they are going to have on your FICO® score. For example, a collection that is 4 years old will hurt much less than a collection that is 4 months old.

After that time it will be automatically removed from your report.  But 7-10 years is a long time, and that negative information can be standing in the way of you buying a car, a house, or getting a good loan.  Public records have a huge impact on your credit report and your credit score as well.

At Nationwide Credit Clearing, we help you get those items removed.  There is no reason for those items to remain on your report for 7-10 years.

Positive Information:

All positive information on your credit report can stay there forever. The more positive information, the better your credit score will be

It’s time to start learning how to STOP LETTING BAD CREDIT AFFECT YOUR FINANCES.  When you sign up with Nationwide Credit Clearing, we take the lead to work on your credit report and dispute unfavorable or inaccurate and outdated information. By doing this it will help save time, energy and frustration.  More importantly we help to improve your credit score and ultimately fulfill your dreams… whatever they may be!

Nationwide Credit Clearing offers absolutely FREE – no credit card required – credit reports and consultations.  To see your credit score, contact us now.