Questions regarding credit card APR

Started Feb 15, 2013 | Discussions thread
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Re: I'm no expert on this
In reply to Chato, Feb 17, 2013

Chato wrote:

But why keep more then two credit cards?

It's good to have a spare account for emergencies, but if you NEED more than two, what the heck are you doing?

I stand ready to be corrected, because, as I said above, I'm no expert.

p.s. It's not about maxing-out as many cards as possible. As I stated above, part of your credit risk is based upon the ratio of Credit Used / Credit Available. So having many spare accounts increase the denominator, which means a lower credit risk, which means a higher Credit Score.

A higher Credit Score gets you a better APR on a home mortgage, a car loan, and surprisingly Homeowners Insurance. Right-or-wrong, Insurance companies maintain the opinion that if you have crappy credit, you are more likely to submit a claim against your homeowners insurance. So higher credit score = Lower Insurance Premiums

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