Does having too much credit hurt your credit score? Should you close credit cards to reduce your credit available? These are questions addressed by Barry Paperno a contributor to creditcards.com. Conventional wisdom 20 years ago was that if a borrower had access to too much credit, he or she would be tempted to use too much credit and get in trouble. But in the 1980s, FICO did a study and found that there was no evidence that having “too much” credit would change the consumer’s behavior. The same research confirmed that open long-held cards in good standing are associated with lower credit risk. However, some mortgage brokers still cling to the myth that a borrower may have too much credit.
The number of cards a person’s hold is a minor factor in credit scoring. Closing them won’t change the number. Positive payment histories remain on credit reports for up to 10 years. FICO publishes a profile of common attributes of persons with scores greater than 785 which is interesting.