Traditionally the larger common mistakes among Canadian’s is that the more credit accounts you have the better your credit worthiness is. Unfortunately this simply isn’t true. In actual fact this will be a liability to you and your credit score.

When banking institutions look at your credit and borrowing capability they look at the total number of accounts you have and consider the likelihood of you getting into financial trouble. If you have 6 or seven credit cards the likeliness of you getting into financial troubles will be higher than if you have 1 or two credit cards. Basically this means that if you have a large amount of credit card accounts you are going to be a higher gamble to creditors.

The other most commonmisinterprtation that individuals make is that they frequently apply for store cards. People continually think that depatment store cards won’t hold as much impact as credit cards and that it doesn’t count the same as credit cards. Again, this is merely not true. Store cards are precisely the same as any credit card and defiantely holds a derogative implication on your credit bureau if you apply for numerous accounts at different department stores.
Keep in mind, having multiple accounts is not necessarily better.

if your looking to increase your credit score you should not have more than one or two credit cards and make sure the balances are as low as possible. Generally under 50% is best. Carrying multiple credit cards with balances at their limit surely will hold a notably bad impression on your credit score. If you have aquired multiple credit cards and department store cards you could consider entering financial counselling or some type of debt consolidation.

Debt consolidation Canada can offer Canadian’s lots of options to put an end to credit card debt and get you back on track

Greg Martin
Debt Manager
Phoenix Credit and Debt Counsellors
Debt Consolidation Canada