This is one example of why our country is having problems. The following was posted on the web site bankrate.com.
“The average number of credit cards per U.S. cardholder is 9.5 according to David Robertson, publisher of the Nilson Report, a payment industry newsletter”. Did I read that right 9.5 credit cards per cardholder? It gets better, it goes on to say…..
“In the latest versions of the FICO Classic scoring model, the number of credit cards a consumer holds is not a factor in the calculation, even though it was a factor in some of the previous versions of the model”. Does anybody see a problem with this? Please don’t be responsible and have only one or two cards have 9.5 credit cards”. Wait it gets better, to improve your FICO credit scores just apply for more credit card debt. No joke the article goes on to state:
“In fact, having multiple credit cards that you use sparingly can boost your credit scores by lowering your overall balance-to-limit ratio, or utilization. Amounts owed makes up 30 percent of your FICO credit score”.
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